House Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Uses 28/43 DTI guidelines with full PITIA analysis.
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Max Home Price
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Max Monthly P&I Payment —
Maximum Loan Amount —
Front-End DTI Used —
Extended More scenarios, charts & detailed breakdown ▾
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Max Home Price (28% DTI)
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Conservative Price (25% DTI) —
Max Monthly Payment —
Total DTI (with debts) —
Professional Full parameters & maximum detail ▾
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Affordability Summary
Max Home Price (Full PITIA) —
Max Monthly Housing Budget —
DTI Status —
Debt Analysis
Total Monthly Debts —
Front-End DTI (28% limit) —
Back-End DTI (43% limit) —
Monthly Payment Breakdown
Monthly P&I at Max Price —
Monthly Property Tax —
Monthly Insurance —
Monthly PMI —
How to Use This Calculator
- Enter your Annual Gross Income — before taxes, household total if buying jointly.
- Enter all Monthly Debt Payments — car loans, student loans, credit card minimums.
- Enter your Down Payment saved and the expected Interest Rate.
- See your Maximum Home Price based on the 28% front-end DTI guideline.
- Use the Professional tab for full PITIA analysis with property tax, insurance, and PMI.
Formula
28% Front-End DTI Rule:
Max Monthly Housing = Gross Monthly Income × 0.28
Max Loan Amount: L = PMT × [(1+r)^n − 1] / [r × (1+r)^n]
- PMT = Max monthly housing payment
- r = Monthly interest rate
- n = Number of months
- Max Home Price = Max Loan + Down Payment
Example
Example: $100,000 income, $500 monthly debts, $60,000 down, 6.8% rate, 30-year term.
- Monthly Income: $8,333
- 28% of Monthly Income: $2,333
- Max Loan (30yr, 6.8%): ~$357,000
- Max Home Price: ~$417,000
- Back-End DTI: ($2,333 + $500) / $8,333 = 34% — excellent
Frequently Asked Questions
- A common rule is the 28% rule: your monthly housing costs (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. On a $100,000/year salary, that is about $2,333/month for housing costs.
- DTI is your total monthly debt payments divided by your gross monthly income. Lenders use two DTI ratios: front-end DTI (housing costs only, ideally below 28%) and back-end DTI (all debts including housing, ideally below 43%).
- A larger down payment reduces your loan amount, resulting in lower monthly payments and allowing you to afford a more expensive home. Putting 20% down also eliminates PMI, saving typically $100–$300/month.
- Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.3–1% of the loan amount annually and can be removed once you reach 20% equity.
- Beyond the mortgage payment, budget for: property taxes (~1.1% of value/year), homeowners insurance (~0.3%), maintenance (1% of value/year), closing costs (2–5% of home price), and possibly HOA fees and PMI.
Related Calculators
Sources & References (5) ▾
- CFPB — How Much House Can You Afford? — Consumer Financial Protection Bureau
- HUD — Buying a Home Affordability Resources — U.S. Department of Housing and Urban Development
- Freddie Mac — Home Affordability Resources — Freddie Mac
- Fannie Mae — Know Your Options: Affordability — Fannie Mae
- Federal Reserve — Household Debt and Credit Report — Federal Reserve Bank of New York