Home Affordability Calculator
Find the maximum home price you can afford based on your income, debts and down payment.
Formula
About this calculator
A home affordability calculator turns your income, existing debts and savings into a realistic maximum home price — the number lenders are likely to approve and, just as importantly, one you can comfortably carry. Rather than guessing, it applies the same debt-to-income tests mortgage underwriters use, so the figure you see is grounded in how lending actually works.
The calculation rests on two limits. The front-end ratio caps your total monthly housing payment — principal, interest, property tax, insurance, HOA and PMI — at a share of your gross income, typically around 28 percent. The back-end ratio caps all of your monthly debt payments combined, including car loans, student loans and credit cards, usually near 36 percent. Whichever limit is stricter for your situation becomes the binding constraint, and the calculator tells you which one it is.
From that maximum affordable monthly payment, the tool works backwards to a home price. It strips out the non-loan portions of the payment — taxes, insurance, HOA and any PMI — to find how much can go toward principal and interest, then converts that into a loan amount at your rate and term, and finally adds your down payment to arrive at the price you can support.
Because affordability is only as accurate as its inputs, use your true gross income, all recurring debts and a realistic down payment. Remember that being approved for a maximum is not the same as being obliged to spend it: leaving headroom below the cap gives you room for emergencies, savings and the other costs of owning a home.
Frequently asked questions
How much house can I afford?
Lenders generally cap your housing payment near 28% of gross income and your total debts near 36%. This calculator applies both limits and converts the stricter one into a maximum home price.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only housing costs against your income; back-end DTI counts all debt payments including housing. The lower of the two resulting limits determines what you can afford.
Does a bigger down payment help?
Yes. A larger down payment adds directly to the price you can afford, reduces the loan you need, and can eliminate PMI, freeing up more of your monthly budget for principal and interest.
Should I borrow the maximum?
Not necessarily. The maximum is what you could qualify for, not what's comfortable. Buying below your cap leaves room for savings, emergencies and the ongoing costs of homeownership.
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⚠️ This is an estimate based on standard DTI guidelines and your inputs, not a loan offer or financial advice. Actual approval depends on credit, lender rules and full underwriting.