House Affordability Calculator
Find out how much house you can afford based on your income.
Affordable home price
$321,640.96
Loan amount
$281,640.96
Max monthly payment (PITI)
$2,200.00
Principal & interest
$1,780.16
Property tax
$294.84
Home insurance
$125.00
Based on a 36% debt-to-income (DTI) guideline; the monthly budget covers principal, interest, property tax, and insurance (PITI). Estimate only — lenders use additional factors.
What is the House Affordability Calculator?
A house affordability calculator estimates the home price you can afford based on your income, debts, down payment, and a debt-to-income guideline.
How the calculation works
It applies a 36% debt-to-income (DTI) limit: your monthly housing budget is 36% of gross monthly income minus existing debts. That budget covers principal, interest, property tax, and insurance (PITI), and the calculator solves for the largest loan and home price that fit.
Example
With $90,000 income, $500 monthly debts, and $40,000 down, the housing budget is about $2,200/month (PITI). After taxes and insurance, that supports a home price well above the down payment.
Tips
- Paying down existing debts increases how much house you can afford.
- A larger down payment raises your price ceiling and avoids PMI.
- Lenders also weigh credit score and reserves beyond DTI.
Limitations
Uses a 36% back-end DTI rule and estimated tax/insurance. Actual approval depends on the lender, credit, and program.
Frequently asked questions
What is debt-to-income (DTI)?
DTI is the share of gross monthly income that goes to debt payments; lenders commonly cap total DTI around 36–43%.
What is the 28/36 rule?
A guideline suggesting no more than 28% of income on housing and 36% on total debt.
Does the budget include taxes and insurance?
Yes — this calculator models PITI, so property tax and insurance reduce how much loan fits the budget.
How much down payment do I need?
It varies by loan; more down raises your price ceiling and can remove PMI.
Is this a loan pre-approval?
No — it is an estimate. Only a lender can pre-approve you based on full underwriting.
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Reviewed for the 2025 tax year
See our methodology, data sources, and editorial policy. Educational use only — not financial, tax, or investment advice (disclaimer).