House Affordability Calculator
Find the maximum home price you can afford based on your income, debts, down payment, and a debt-to-income limit.
Example
With a $120,000 income, $500/mo in debts, $60,000 down, a 36% DTI limit, a 6.5% rate over 30 years, and $400/mo estimated taxes and insurance: your total debt cap is $3,600/mo. After debts and taxes/insurance, $2,700/mo is left for principal and interest, which supports a loan of about $427,169. Adding the down payment gives a maximum home price of roughly $487,169.
How it works
We cap your total monthly debt at your DTI percentage of gross monthly income, subtract existing debts plus estimated taxes/insurance to find your principal-and-interest budget, then back out the loan with M = P*r/(1-(1+r)^-n) and add your down payment.
Good to know
The House Affordability Calculator works backward from your budget to estimate the highest home price you could reasonably target. You enter your annual income, existing monthly debt payments, cash down payment, a debt-to-income (DTI) ceiling, your expected interest rate and loan term, and a monthly estimate for property taxes, insurance, and HOA. It then figures out how much room is left for a mortgage payment and converts that into a maximum loan plus your down payment. It is useful for first-time buyers sizing up a price range before browsing listings, or anyone re-checking affordability after rates or debts have changed.
Reach for it early, before you talk to a lender or fall for a specific house, so you can see how each lever moves the result. Because everything recalculates instantly in your browser, it is built for "what if" testing: nudge the rate up a point, add a car loan, or shrink the DTI limit and watch the affordable price respond.
Read the output as a ceiling, not a goal. The big number is the maximum price; the supporting stats show your max loan, the monthly principal-and-interest payment behind it, the total housing payment including taxes and insurance, and your overall monthly debt cap. The two bars show how much of the price comes from your down payment versus the mortgage. If the price looks low, the usual culprits are a high existing-debt figure or a conservative DTI percentage eating into your payment room.
- The taxes/insurance/HOA field is your own estimate, not a real quote, and it directly reduces how much you can borrow, so a too-low guess will overstate affordability.
One caveat worth remembering: this uses a single back-end DTI ratio and ignores credit score, cash reserves, PMI, and the separate front-end housing ratio many lenders also apply. Treat the result as a planning estimate and confirm real numbers with a lender before committing.
Frequently asked questions
What is DTI and why does it cap my home price?
Debt-to-income (DTI) is the share of your gross monthly income that lenders let go toward all debt payments. A common back-end limit is 36-43%. We multiply your monthly income by that percent, subtract existing debts and estimated taxes/insurance, and the remainder is your mortgage principal-and-interest budget.
Does a bigger down payment raise the home price I can afford?
Yes, dollar for dollar. Your down payment is added directly to the maximum loan your DTI-based payment supports, so increasing it raises the affordable price by the same amount, while also potentially lowering rate and removing mortgage insurance in real-world terms.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What income do I need to afford a $400,000 house?
It depends on your interest rate, term, down payment, existing debts, and DTI limit rather than income alone. Enter $400,000 as your target and adjust the income field until the calculator's maximum price reaches that number to see what income supports it under your assumptions.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only housing costs against your income, while back-end DTI counts all monthly debt payments including housing. This calculator uses a single back-end style cap, so a lender applying a separate front-end limit could approve you for less.
How does my interest rate change how much house I can afford?
A higher rate increases the monthly payment per dollar borrowed, so the same payment budget supports a smaller loan and a lower maximum price. Lowering the rate has the opposite effect, raising the loan amount your payment can cover.
Does this calculator include property taxes and homeowners insurance?
It includes them as a single monthly estimate you enter, covering taxes, insurance, and HOA combined. That amount is subtracted from your payment budget before the loan is calculated, but it is your estimate rather than an actual quote.
What DTI ratio do mortgage lenders typically use?
A common back-end limit is around 36 percent, though many loan programs allow up to 43 percent or higher depending on the borrower's profile. The calculator lets you set this figure yourself between 1 and 60 percent.
Why is the affordable home price higher than just my loan amount?
The maximum price equals the loan your payment budget supports plus your cash down payment, since the down payment covers part of the purchase directly. Increasing your down payment raises the price dollar for dollar.
Should I borrow up to the maximum amount this calculator shows?
The figure is a ceiling based on your inputs, not a recommendation, and it excludes factors like reserves, maintenance, and lifestyle costs. Many buyers choose a payment below their maximum to keep room in their budget.
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