Home Affordability Calculator
Enter your income, debts, and down payment to see how much house you can afford.
Results
Max Home Price
$383,775
Max Loan Amount
$323,775
Max Monthly Payment
$2,100
Down Payment %
15.6%
Back-End DTI
34.7%
Based on 28% front-end / 36% back-end DTI guidelines. Actual approval may vary.
How Much House Can You Afford?
Lenders use two key debt-to-income (DTI) ratios to determine home affordability. The front-end ratio limits your monthly housing costs (principal, interest, taxes, and insurance) to no more than 28% of your gross monthly income. The back-end ratio caps all monthly debt payments, including housing, auto loans, student loans, and credit cards, at 36% of gross income. Your maximum affordable home price is determined by whichever limit is more restrictive.
For example, a household earning $90,000 per year ($7,500/month) with $500 in monthly debts and a 6.75% mortgage rate could afford a home priced around $390,000 on a 30-year loan with a $60,000 down payment. Increasing your down payment directly raises your max home price dollar-for-dollar, and reducing existing debts frees up more room in your back-end DTI.
Keep in mind that lenders look at more than just income ratios. Your credit score, employment history, and cash reserves all influence the final approval amount and interest rate. Some loan programs (FHA, VA, USDA) allow higher DTI ratios, so your actual limit may be higher than the conservative 28/36 guideline shown here.
Use this home affordability calculator as a starting point, then pair it with our Mortgage Calculator to model exact monthly payments for a specific home price.