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Home Affordability Calculator – How Much House Can I Afford?
How much house you can afford from your income, debts and down payment, using lender debt-to-income limits.
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How much house can you afford? Lenders answer that question with two debt-to-income (DTI) ratios, and this calculator uses the same math. Enter your income, monthly debts and down payment to see the highest home price that fits, the full monthly payment with property tax, insurance and PMI, and how the answer changes under conventional and FHA limits.
How to Use the Home Affordability Calculator
- Gross annual income: before taxes, for everyone who will be on the mortgage.
- Monthly debt payments: minimum payments on car loans, student loans and credit cards, plus child support or alimony. Don't include rent, utilities or groceries.
- Down payment: the cash you will put down, not counting closing costs.
- DTI limit: start with the conservative 28/36 rule; switch to FHA or stretch to see the most a lender might approve.
- Adjust the rate, property tax and insurance for the area you are shopping in.
The 28/36 Rule
The classic guideline says your housing payment (principal, interest, taxes, insurance, PMI and HOA) should be no more than 28% of gross monthly income – the "front-end" ratio – and all your debt payments together no more than 36% – the "back-end" ratio. The calculator finds the price where whichever limit is tighter is met exactly.
Example: a household earning $100,000 ($8,333 a month) with $500 of other debt payments can spend 28% × $8,333 = $2,333 a month on housing. The 36% test allows $3,000 − $500 = $2,500, so the 28% limit is the tighter one. With $40,000 down, a 6.5% 30-year rate, 1.1% property tax, $1,800 insurance and 0.5% PMI, that payment buys a home of about $320,463.
What Different Limits Allow
| Scenario (same household) | Home price | Monthly payment |
|---|---|---|
| Conservative 28/36 | $320,463 | $2,333 |
| FHA guideline 31/43 | $353,125 | $2,583 |
| Stretch 36/45 | $407,563 | $3,000 |
| 28/36 at 5.5% interest | $346,176 | $2,333 |
| 28/36 at 7.5% interest | $297,843 | $2,333 |
A one-point change in the mortgage rate moves the affordable price by more than $20,000 either way. Lenders using automated underwriting can sometimes approve a back-end DTI near 50%, but a payment that high leaves little room for savings, repairs or a job change.
Other Costs to Plan For
- Closing costs: typically 2%–5% of the loan, paid in cash at closing.
- PMI: charged on conventional loans with less than 20% down until you reach 20%–22% equity. FHA loans have their own mortgage insurance premium.
- Maintenance: a common rule is 1%–2% of the home's value a year.
- An emergency fund: lenders may want 2–6 months of payments in reserve.
Once you have a target price, use the mortgage calculator for the payment on a specific home, or the rent calculator if you are comparing renting and buying.
Sources
- CFPB – What is a debt-to-income ratio?
- CFPB – Buying a house: tools and resources
- Fannie Mae – Selling Guide B3-6-02, debt-to-income ratios
Last reviewed: October 2026 by the ShrinkBee team. Results are estimates for planning and education, not financial, tax, legal or medical advice.
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