House Affordability Calculator
Estimate the home price you can afford from your income and debts or from a monthly budget, with conventional, FHA, VA or custom DTI limits, PMI, HOA, closing costs and rate scenarios.
How it works
Max payment = min(front-end limit × monthly income, back-end limit × monthly income − debts) · Price P solves: P&I(loan) + mortgage insurance + tax + insurance + HOA = max payment · loan = (P − down) × (1 + upfront fee) · P&I = loan × r ÷ (1 − (1 + r)^−n)
Lenders cap two debt-to-income (DTI) ratios. The front-end ratio compares the full housing payment (principal, interest, property tax, insurance, HOA and mortgage insurance) with gross monthly income; the back-end ratio adds every other debt payment. Conventional loans are often judged on 28% and 36%, FHA on 31% and 43%, and VA loans on a 41% total ratio only, so the calculator takes the tighter limit for your loan type, or your own custom limits. If you already know what you want to spend each month, switch to the monthly-budget mode instead. The calculator then finds the highest price whose all-in payment fits: property tax can be a flat amount or a percentage of the price, PMI is added to conventional loans while the down payment is under 20%, FHA loans carry a 1.75% upfront premium plus an annual premium, and VA loans add a funding fee that depends on your down payment. Every fee is recomputed for the price found. You also get the cash needed at closing, the ratios you would end up with, and how the price changes with the rate or a looser or tighter DTI limit.
Worked example
On $90,000 income ($7,500 a month) with $500 of other monthly debt, the conventional 28% housing cap ($2,100) is tighter than the 36% cap ($2,700 − $500 = $2,200). After $350 for tax and insurance, $1,750 must cover principal, interest and PMI. With $40,000 down the down payment is under 20%, so PMI at 0.5% a year applies: the calculator finds a home price of about $299,700, a $259,700 loan with a $1,641.77 principal-and-interest payment and $108.23 of PMI. With the PMI rate set to 0 the same budget reaches about $316,900. Closing costs of 3% add about $9,000 to the $40,000 down payment, so you would need roughly $49,000 in cash.
Sources: CFPB — What is a debt-to-income ratio? · HUD Mortgagee Letter 2023-05 — FHA annual and upfront mortgage insurance premiums · VA — Funding fee and closing costs
Frequently asked questions
What is the 28/36 rule?
A guideline that housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Many lenders allow higher back-end ratios, but 36% keeps payments comfortable.
Which DTI limits does each loan type use?
As a rule of thumb, conventional loans use 28% for housing and 36% for all debts (automated underwriting can approve up to about 45%–50%), FHA loans use 31% and 43%, and VA loans look at a 41% total ratio only. Pick Custom limits to enter the ratios your lender quotes.
Does a bigger down payment let me buy more?
Yes. The payment limits cap the loan, so every extra dollar of down payment adds to the price you can afford. Reaching 20% down on a conventional loan also removes PMI, which frees part of the payment for a larger loan.
Should I start from my income or from a monthly budget?
Start from income to see what lenders would approve under DTI rules. Start from a budget if you already know the payment you are comfortable with. The lender maximum is often more than your take-home pay can carry comfortably.
What costs are included?
Principal and interest, property tax, home insurance, HOA dues and mortgage insurance (PMI, FHA premiums or the VA funding fee) are included. Closing costs are shown separately as cash you need at closing. Maintenance and utilities are not included, so leave room for them in your budget.
How much does the interest rate change what I can afford?
A lot. The rate table shows the price for rates one point below and above yours. On a 30-year loan, each 1 percentage point of rate changes the affordable price by roughly 10%.
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This is an educational estimate, not financial advice. Confirm figures with your lender, advisor or tax professional.