Free calculator · Updated
Home Affordability Calculator
The home price your income, debts and down payment support, with the full monthly payment.
You
The loan
Home price you can afford
$382,044
A full payment of $2,750 a month fits a 36% debt-to-income limit.
Breakdown
Estimate only. Includes PMI at 0.6% of the loan a year under 20% down. Lenders also weigh credit, reserves and the loan program; a pre-approval gives the real number.
How the calculator works
- Enter your gross income, monthly debt payments and down payment.
- Set the debt-to-income limit your lender uses and the loan terms.
- The calculator searches for the highest price whose full payment fits.
Assumptions to check
- Housing budget = gross monthly income × DTI limit − other monthly debts.
- Full payment = principal and interest + property tax + insurance + PMI (0.6% of the loan a year under 20% down).
- Closing costs and cash reserves are not deducted from the down payment.
Frequently asked questions
How much house can I afford on my salary?
Lenders cap your total monthly debt, including the new housing payment, as a share of gross income: your debt-to-income ratio (DTI). The limit depends on the loan program and your file. This calculator finds the home price whose full monthly payment (principal, interest, tax, insurance and PMI) fits the budget left after your other debts at the DTI limit you enter.
What is debt-to-income ratio (DTI)?
DTI is your total monthly debt payments divided by your gross monthly income. Front-end DTI counts only housing; back-end DTI counts housing plus all other debts (car, student loans, credit cards). A lower DTI means more room for a housing payment. Limits vary by program: Fannie Mae’s guide, for example, caps manually underwritten loans at 36% (up to 45% with strong credit and reserves) and allows up to 50% through its automated underwriting.
Does a bigger down payment let me afford more?
Yes. A larger down payment reduces the loan amount (lowering the monthly payment) and, once you reach 20%, removes PMI, freeing up budget for a higher price. The calculator reflects both effects.
Is this a pre-approval?
No. It is an estimate based on DTI and your tax, insurance and PMI assumptions. A lender also weighs credit score, cash reserves, employment history and loan program. Get pre-approved for an exact number.
Sources
- CFPB: What is a debt-to-income ratio?
- Fannie Mae Selling Guide B3-6-02: Debt-to-income ratios
- CFPB: What is private mortgage insurance?
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Next: check the monthly payment at a specific price with the mortgage calculator.
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Estimates for planning and illustration only. Not financial, tax, legal or appraisal advice: confirm figures with the lender, title or escrow company, or other professional handling the transaction.