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Home Affordability Calculator

How much house can you afford?

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Enter your numbers and press Calculate.

About the Home Affordability Calculator

This calculator estimates a home price range from your gross income, monthly debt payments, down payment, and an assumed mortgage rate. It works backward from debt-to-income (DTI) limits that lenders commonly apply to the total monthly housing payment.

The estimate covers principal, interest, and an allowance for property taxes and insurance. It does not include maintenance, HOA dues, or closing costs, and lender criteria vary.

How this works

Max payment = min(28% income, 36% income − other debts) − taxes − insurance; max loan = PV of payment.

Assumptions

  • Uses the 28/36 rule: housing ≤ 28% of gross income, total debt ≤ 36%.
  • Property tax and insurance are flat estimates.
  • Does not include PMI, HOA, or closing costs.

Frequently asked questions

What DTI do lenders look for?
Guidelines vary, but total monthly debt payments including housing are often kept at or below roughly 36% to 43% of gross monthly income, with exceptions.
Does a bigger down payment increase affordability?
Yes, in two ways: it reduces the loan amount and monthly payment, and it can remove private mortgage insurance once equity reaches 20%.
Is the property tax figure exact?
No. It is an estimate based on a typical rate; actual taxes depend on the location and assessed value.

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This calculator provides estimates for educational purposes only and is not personalized financial advice. Rates, taxes, and financial products change — verify with providers and qualified professionals.