Calculator
Home Affordability Calculator
Work from your income and debts to a realistic maximum home price.
How is affordability calculated?
Lenders work backward from your income and existing debts to a maximum monthly housing payment, using a debt-to-income (DTI) ratio, then convert that payment into a maximum loan amount at your interest rate and term — add your down payment, and that’s the ceiling on home price.
Frequently asked questions
What is DTI, and why 28%, 36% or 43%?
Debt-to-income is the share of your gross monthly income that goes to debt payments. 28% is a conservative "front-end" guideline for housing costs alone; 36% is a common "back-end" target including all debts; 43% is close to the upper limit many lenders allow for qualified mortgages. Picking a lower percentage gives a more conservative, comfortable estimate.
How does down payment affect my max home price?
Down payment is added directly on top of the max loan amount, dollar for dollar — it doesn't change how much you can borrow, but it does change how much house that borrowing capacity translates into. A bigger down payment is one of the most direct ways to afford a more expensive home without increasing monthly debt.
Does this include property tax and insurance in the DTI limit?
No — this calculator estimates the max monthly payment from income, existing debts and your DTI target, then solves for loan amount using that payment and your rate/term alone. In practice, lenders count property tax and insurance toward your housing DTI too, so your real approved loan amount may come in somewhat lower than this estimate.
Why might a lender approve more or less than this estimate?
Lenders also weigh credit score, employment history, cash reserves and the specific loan program, none of which this calculator sees. Treat this as a starting range to shop with, not a pre-approval — the only way to know your real number is to talk to a lender.