Home Affordability Calculator
How much house can your income actually carry — once property taxes and homeowners insurance are in the picture. Pick a DTI (debt-to-income) target, enter your income and existing monthly debts, and see the max home price and loan amount that fit.
Before taxes; combined if two earners on the loan.
Minimum payments on cars, student loans, credit cards.
Cash you can put toward the purchase.
Annual rate, e.g. 6.5.
Most U.S. mortgages are 30-year fixed.
Front-end (housing-only) limit. Lenders typically apply a back-end (all debts) limit too.
At 36% DTI with $50,000 down, a 30-year fixed at 6.50%, and typical taxes + insurance.
$332,338 max home price
- Loan amount
- $282,338
- Down payment
- $50,000
- Monthly P&I (principal & interest)
- $1,784 / mo
- Monthly tax + insurance
- $415 / mo
- Total monthly housing
- $2,199 / mo
- Down payment
- 15.0%
Free during pilot
How affordability is calculated
Affordability is bounded by two things: how much monthly housing payment your income supports at the DTI (debt-to-income ratio) you pick, and how a given principal-and-interest payment grows with home price after taxes and insurance are added.
We start from gross monthly income (annual ÷ 12), subtract your existing monthly debts from the DTI-allowed housing budget, then solve for the home price H where:
P&I(loan = H − down) + (tax + ins) × H ≤ allowed housing
The P&I-per-dollar slope comes from the standard amortization formula evaluated at your rate and term. Tax + insurance is loaded at 1.5% of home value per year as a national composite — actual county millage and insurance premiums vary significantly, especially in coastal and flood-zone areas.
DTI bands
- 28% (conservative) — the classic front-end DTI (just the housing payment over income). Leaves headroom for savings, repairs, and rate shocks.
- 36% (typical) — common qualifying band on conventional loans without compensating factors (other strengths in your file, like reserves or a high credit score).
- 43% (qualifying max) — close to the Qualified Mortgage back-end DTI (all monthly debts over income) limit. Many lenders push higher with AUS (automated underwriting system) approval and reserves, but you're leaving yourself little cushion.
What this calculator deliberately excludes
- PMI / FHA MIP (mortgage insurance). Mortgage insurance reduces effective affordability when LTV (loan-to-value — your loan balance divided by the home's value) is above 80%. Not modeled here.
- HOA dues, condo fees, CDDs. Vary too widely for a general estimator.
- Lender-specific overlays. Two lenders with the same AUS (automated underwriting system) finding can land on different qualifications.
Frequently asked questions
How much house can I afford?
Your affordable price is bounded by the monthly housing payment your income supports at a chosen debt-to-income (DTI) target, after subtracting your existing monthly debts. This calculator solves for the home price where principal, interest, and a typical tax-and-insurance load fit inside that budget. It is an estimate, not a pre-approval.
What DTI target should I use?
Common heuristics are 28% (conservative — leaves headroom for savings and rate shocks), 36% (a typical conventional qualifying band), and 43% (near the Qualified Mortgage back-end limit). Higher ratios are sometimes possible with automated-underwriting approval and reserves, but leave less cushion. Pick the band that matches the margin you want.
Does this include property taxes and insurance?
Yes — it loads taxes and insurance at 1.5% of home value per year as a national composite. Actual county millage and insurance premiums vary significantly, especially in coastal and flood-zone areas, so treat the result as a starting estimate rather than an exact budget.
What does this affordability calculator leave out?
It excludes PMI and FHA mortgage insurance (which reduce affordability above 80% loan-to-value), HOA and condo dues, CDD fees, and lender-specific overlays. Two lenders with the same automated-underwriting finding can still land on different numbers. This is an estimate, not a lending decision.
Estimates only — not a lending decision or a pre-approval. The DTI bands shown are common underwriting heuristics; actual qualification depends on credit score, reserves, employment history, loan program (conventional, FHA, VA), and lender-specific overlays. The tax + insurance load assumed here is a national composite, not your state or county's actual rate. Methodology last reviewed: May 26, 2026.