House Affordability Calculator

Calculate how much house you can afford based on your income, debts, and down payment.

Annual income

Monthly debts

Down payment

Interest rate (%)

Loan term

Advanced settings

Property tax rate (%)

Max debt-to-income (%)

Maximum home price

$249,000

Loan amount: $199,000

Monthly payment

$1,611

DTI ratio

33.8%

Affordability ranges

Conservative

$199,000

Moderate

$249,000

Aggressive

$286,000

Payment breakdown

Principal & Interest(78.1%)

Property tax(15.5%)

Insurance(6.4%)

Principal & Interest

$1,258

Property tax

$249

Insurance

$104

Debt-to-income ratio

33.8%

Good - qualifies for most loans

How affordability is calculated

Lenders use your debt-to-income ratio (DTI) to determine affordability. This includes your mortgage payment plus all monthly debts divided by your gross monthly income. Most lenders prefer a DTI under 36%.

Understanding DTI

Front-end DTI (housing only) should be under 28%. Back-end DTI (all debts) should be under 36%. Some loan programs allow up to 43-50% DTI with compensating factors.

Tips for buying

Just because you can afford a certain price doesn't mean you should. Consider leaving room for savings, emergencies, and lifestyle expenses. A 20% down payment avoids PMI.