House Affordability Calculator

A common starting point is the 28/36 rule: spend no more than 28% of your gross monthly income on housing (front-end ratio) and no more than 36% on housing plus all other debts (back-end ratio). This calculator applies whichever of those two limits is more restrictive for your numbers, then solves for the home price whose monthly payment fits under it.

It's a widely cited debt-to-income guideline: your total housing payment (principal, interest, taxes, insurance, PMI, and HOA) shouldn't exceed 28% of your gross monthly income, and that payment plus all other debts shouldn't exceed 36%. It's a conservative rule of thumb, not a hard requirement — many loan programs allow higher ratios.

It depends on the loan program and your credit profile. FHA loans commonly use a 31% front-end / 43% back-end guideline, though FHA allows higher ratios with strong compensating factors. Conventional loans run through Fannie Mae's Desktop Underwriter or Freddie Mac's Loan Product Advisor can be approved up to a 45–50% back-end DTI with good credit and reserves, while the CFPB's Qualified Mortgage rule has historically used 43% as a common reference point. Always confirm the actual limit with your lender.

Recurring, reported debt obligations: car loans and leases, student loan payments, minimum credit card payments, personal loan installments, alimony, and child support. Everyday living costs like groceries, utilities, subscriptions, and insurance premiums (other than what's already in your housing payment) generally aren't counted.

A larger down payment lowers your loan amount (and therefore your principal & interest payment), and once it reaches 20% of the price it also removes PMI, freeing up more of your budget for the loan itself. The down-payment sensitivity chart shows how the maximum home price rises as your down payment grows.

Because property tax here is a percent of the home's price, a higher home price means a higher tax bill, which eats into the same fixed monthly budget. That circular relationship — price affects tax, tax affects the price you can afford — is exactly why the calculator has to search for the answer instead of using one formula.

The front-end ratio only counts your housing payment (PITI) against your income. The back-end ratio adds in every other monthly debt you carry. If you have little other debt, the front-end ratio usually limits you first; if you have significant car, student, or credit card payments, the back-end ratio often binds instead — the calculator tells you which one is limiting your result.

Use 'by income' if you want a ratio-based estimate of what a lender is likely to approve. Use 'by monthly payment' if you already know exactly what you're comfortable paying each month — for example, close to your current rent — and want to see what home price that translates to.

No — it estimates the ongoing monthly PITI payment and the home price that fits your budget. Closing costs are a separate, one-time expense (typically a few percent of the loan amount) due at closing, on top of your down payment.

Not necessarily. Lender approval reflects what you can technically repay, not what leaves comfortable room in your budget for saving, emergencies, or other goals. That's why the comfortable/stretch/aggressive table shows a range — many buyers choose a home price well below the maximum a lender would approve.