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House Affordability Calculator

Estimate how much house you can afford from household income and DTI, or from a fixed monthly housing budget — including tax, insurance, HOA, PMI, and closing costs.

Affordability from gross income, debts, and a loan program DTI cap.

ExampleSample values — edit any field to see your result.

$

Salary and other income before tax.

years
%

Annual percentage rate (APR).

$

Long-term debts: car, student loan, credit cards, etc.

Percent of the house price, or a dollar amount.

Annual amount, as a percent of price or in dollars.

Per year.

Annual amount, as a percent of price or in dollars.

Per year.

Annual homeowners insurance, as a percent of price or in dollars.

Per year.

Results update as you type.

House you can afford

$407,107

Estimated result

You can afford a house up to $407,107 according to the 28/36 rule.

You can borrow
$325,685
Down payment
$81,421
Estimated closing cost (3%)
$12,213
Front-end DTI ratio
28%
Back-end DTI ratio
28%
Total one-time payment at closing
$93,635
Monthly mortgage payment
$2,121
Annual property tax
$6,107
Annual HOA or co-op fee
$0
Annual insurance cost
$2,036
Estimated annual maintenance
$6,107
Total monthly cost on the house
$3,309

Monthly cost breakdown

Principal & interest 64%, Property tax 15%, Insurance 5%, Other housing costs 15%
  • Principal & interest64%
  • Property tax15%
  • Insurance5%
  • Other housing costs15%
House you can afford$407,107

Estimate how much house you can afford from household income and a loan-program DTI cap, or from a fixed monthly housing budget. The result includes the loan, down payment, 3% closing costs, monthly principal and interest, and the tax, insurance, HOA, PMI, and maintenance that make up a full housing payment.

Formula

The loan is the house price minus the down payment. Principal and interest use the standard amortizing payment for a loan P, monthly rate r (APR ÷ 12), and n monthly payments:

P&I = P · r(1 + r)^n / ((1 + r)^n − 1)

Monthly housing cost for the DTI cap is P&I plus property tax, HOA, and insurance (each annual amount ÷ 12), plus PMI at 0.5%/year of the loan when the down payment is under 20%. The calculator solves the house price so that cost equals the housing limit:

Conventional  housingLimit = min(0.28, 0.36 − debt/income) × monthly income
FHA           housingLimit = min(0.31, 0.43 − debt/income) × monthly income
VA            housingLimit = 0.41 × monthly income − monthly debt
Custom        housingLimit = dti% × monthly income − monthly debt

Closing costs are 3% of the house price. Maintenance at 1.5% of price is shown on the income tab but is not part of DTI.

Putting 20% down avoids PMI and usually raises the house price you can support at the same DTI cap.

Loan-program DTI caps

ProgramFront-endBack-endNotes
Conventional28%36%28/36 rule; PMI under 20% down
FHA31%43%Upfront MIP 1.75% plus 0.5%/yr MIP
VA—41%Funding fee; no front-end ratio
Custom—10–50%5% steps; PMI under 20% down

Examples

Conventional 28/36 on $120,000 income

A household earning $120,000 with no other debt, 20% down, 6.792% on a 30-year loan, 1.5% property tax, and 0.5% insurance can afford about $407,107. The loan is $325,685, monthly P&I is $2,121, and the all-in monthly housing cost including 1.5% maintenance is $3,309.

Same buyer with $1,000 of monthly debt

Other debts eat the back-end room. Housing is capped at 36% − $1,000, so the affordable price drops to about $378,028.

Fixed $3,500 monthly budget

With taxes and fees included in a $3,500 budget (same rate, term, and 20% down), the affordable price is about $430,621. Uncheck fees and the whole budget goes to P&I, raising the price to about $671,638.

Frequently asked questions

How much house can I afford?
Lenders look at debt-to-income ratios. On a conventional loan the common guideline is the 28/36 rule: no more than 28% of gross monthly income on housing, and no more than 36% on housing plus other recurring debt. This calculator solves the house price whose monthly principal, interest, tax, HOA, insurance, and PMI (if you put less than 20% down) hit that cap.
What is the difference between front-end and back-end DTI?
Front-end DTI is monthly housing cost divided by gross monthly income. Back-end DTI adds other recurring debts (car, student loans, credit cards) to housing, then divides by income. Conventional loans use both (28/36); FHA uses 31/43; VA uses a 41% back-end guideline and does not apply a front-end ratio.
Does PMI change how much I can afford?
Yes. If the down payment is under 20%, the calculator adds private mortgage insurance at 0.5% of the loan per year to monthly housing costs, which lowers the house price that still fits the DTI cap.
Are maintenance costs included in DTI?
No. On the income tab, maintenance is shown at 1.5% of the house price per year so you can see a realistic monthly all-in cost, but lenders do not count it in DTI. On the budget tab you can fold maintenance into the monthly budget if you check “include tax and fees.”
What closing costs are assumed?
Estimated closing costs are 3% of the house price. FHA loans also add a 1.75% upfront mortgage insurance premium on the loan amount. The total one-time amount at closing is the down payment plus those items.

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