House Affordability Calculator
Estimate the maximum home price you can afford.
Inputs
$
$
%
%
years
%
%
Result
Max Home Price$355,481.74
Max Monthly Payment$2,200.00
Down Payment Needed$71,096.35
Loan Amount$284,385.39
About the House Affordability Calculator
The House Affordability Calculator estimates the maximum home price you can carry based on your income, monthly debts, and a target debt-to-income (DTI) ratio. It works backwards from the payment you can afford to the loan and price that produce it.
Calculation method
Max monthly housing = (Gross monthly income × DTI%) − existing debt payments. The tool then solves for the price whose principal, interest, and tax equal that budget.
Max PITI = Income/12 × DTI − Debts
Price: solved iteratively so payment(P) + tax(P) = Max PITIHow to use this calculator
- Enter gross annual income and monthly debt payments.
- Choose a DTI limit — 36% is conservative, 43% is typical maximum.
- Set the mortgage rate, term, down payment %, and property-tax rate.
- The tool returns the maximum affordable price and required down payment.
Example
With $90,000 income, $500 monthly debt, 36% DTI, a 6.75% 30-year rate, 20% down and 1.2% tax, the safe home price is roughly $340,000 with a $68,000 down payment.
Frequently asked questions
What DTI ratio do lenders use?
Conventional lenders prefer a back-end DTI at or below 36%. Government-backed programs sometimes allow up to 45–50% with strong credit and reserves.
Does DTI include the new mortgage?
Yes. Back-end DTI counts the proposed PITI plus all other recurring debt payments, all divided by gross monthly income.
Should I stretch to my maximum?
Usually no. Leaving room below your DTI cap gives budget space for maintenance, emergencies, and rate changes on adjustable loans.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.