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Affordability Calculator

How much house can you afford?

Enter what you earn, what you owe, and what you’ve saved. We’ll estimate the highest home price that keeps your monthly payment within common lender limits.

  1. Lenders start from your monthly payments

    A lender decides how much you can borrow by comparing your monthly payments to your gross income (your pay before taxes). That comparison is called your , or DTI.

  2. Your payment is more than the loan

    Each month you’d pay back the loan plus interest, property tax, and home insurance. Together these are called . HOA dues and mortgage insurance (PMI) get added when they apply.

  3. We work backward to a price

    We find the highest price where your housing payment stays under the housing limit (28% of gross income) and that payment plus your other debts stays under the total debt limit (36%).
Start with your income and debts, since they set most of the answer. The home cost defaults are slightly cautious US figures you can change later. New to buying? Buying your first home walks through the whole process.
Your finances
LOAN LENGTH (YRS)
$
$/ mo
$
%
Ongoing home costs

Bills that come with owning, on top of the loan. Defaults are rough, slightly cautious US figures; a home's listing usually shows its real property tax and HOA dues.

% / yr
$/ yr
$/ mo
% / yr
Lender limits

How much of your pre-tax income can go to payments. 28% and 36% is a common rule of thumb for staying comfortable; lenders often allow more, as the stress test below shows.

% of income
% of income

You can afford a home up to

$385,649

Keeps your housing payment within 28% of your pre-tax income and all your debt payments within 36%. Assumes $60,000 down and a 6.5% rate over 30 years.

Loan payment· principal + interest
$2,058
Property tax
$402
Home insurance
$150
Mortgage insurance· PMI, under 20% down
$190
Monthly payment · $2,800

Max home price

$385,649

15.6% down

Loan amount

$325,649

borrowed at 6.5% for 30 yrs

Max monthly payment

$2,800

28.0% of pre-tax income

What limits you

Housing limit

housing payment reaches 28% first

Mortgage insurance

$190/mo

required with under 20% down

What this means

At this price your monthly payment would be about $2,800, or 28% of your $10,000 monthly income before tax. With your $500 in other debt payments, 33% of your income would go to debt each month. The housing limit is what stops the price from going higher: the payment alone reaches 28% of your income.

A lender will also look at your credit score, savings, and work history. Getting pre-approved gives you a firm number.

What would raise your max price

Pay off $200/mo of existing debtno change: your housing limit caps you first$0
Save $10,000 more for the down payment+$8,689
Get a 6% rate instead of 6.5%+$13,896

Stress test: comfortable to stretch

The same math at three common sets of limits. The first is the conservative guideline; lenders will often approve up to the third. A bank approving a bigger loan doesn’t mean the payment fits your budget.

Conservative · the classic 28/36 rule

$385,649

$2,800/mo payment · $325,649 loan

28% housing / 36% total debt · limited by housing

Standard · a common lender benchmark

$486,332

$3,600/mo payment · $426,332 loan

36% housing / 43% total debt · limited by housing

Stretch · near the most lenders allow

$574,430

$4,300/mo payment · $514,430 loan

43% housing / 50% total debt · limited by housing

Percentages are the housing limit and total debt limit, which lenders call front-end and back-end . Lenders approve you based on the total debt limit; the housing limit is a check that you won’t be house-poor.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Lenders size your loan with a few ratios and payment parts. These are the terms behind them.

Gross income
Your pay before taxes, retirement contributions, and other deductions. Lenders measure everything against this number, not your take-home pay.
Down payment
The part of the price you pay in cash upfront. The rest is your loan. Closing costs are a separate, additional cash expense.
Principal and interest
The loan part of your monthly payment. Principal pays down what you borrowed; interest is the lender’s charge for lending it.
PITI
Principal, interest, taxes, and insurance: the four parts of a typical monthly mortgage payment. HOA dues and PMI get added when they apply. More
PMI (private mortgage insurance)
A monthly charge lenders add when you put down less than 20%. It protects the lender if you stop paying, and can usually be removed once you owe less than 80% of the home’s value. More
DTI (debt-to-income ratio)
The share of your gross monthly income that goes to debt payments. It’s the main number lenders use to decide how much you can borrow. More
Front-end DTI (housing limit)
Your monthly housing payment divided by your gross monthly income. 28% is the traditional conservative guideline. More
Back-end DTI (total debt limit)
Your housing payment plus all other debt payments, divided by your gross monthly income. 36% is conservative; many lenders allow 43% to 50%. More
HOA dues
Monthly fees to a homeowners association, common with condos and townhomes. Lenders count them as part of your housing payment.
Loan term
How many years you have to repay the loan. Longer terms mean smaller monthly payments but much more interest paid overall.

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