Budget and qualifying
Home Affordability Calculator: How Much House Can I Afford?
Turn your income, monthly debts and savings into a maximum home price, using the same debt-to-income test a mortgage lender uses.
Last updated · Runs in your browser. Nothing you enter is stored or sent.
Home affordability
Results
In plain words
With $95,000 of yearly income and $450 of monthly debts, a 43% (common limit) debt-to-income limit leaves $2,954 a month for housing. That supports a home price of about $382,834, with $28,515 down (7.45%) and a loan of $354,319.
Runs in your browser. Nothing you enter is stored or sent.
Key figures
- Maximum home price$382,834
- Loan amount$354,319
- Down payment$28,515
- Monthly housing budget$2,954
- Principal & interest$2,453
- Principal & interest$2,45383%
- Property tax$35112%
- Home insurance$1505%
- Maximum home price
View chart as table
| Maximum home price | |
|---|---|
| 36% DTI | $313,978 |
| 43% DTI | $382,834 |
| 45% DTI | $402,507 |
| 50% DTI | $451,690 |
Compare scenarios
| Scenario | Maximum home price | Loan amount | Monthly housing budget |
|---|---|---|---|
| 36% DTI | $313,978 | $283,397 | $2,400 |
| 43% DTI | $382,834 | $354,319 | $2,954 |
| 45% DTI | $402,507 | $374,583 | $3,113 |
| 50% DTI | $451,690 | $425,241 | $3,508 |
How to use this calculator
- Enter your gross yearly income and the minimum monthly payments on your other debts.
- Enter the cash you have for the down payment and closing costs.
- Check the interest rate. The box starts at the national weekly average; replace it with a quote if you have one.
- Add your area's property tax rate, a yearly insurance estimate and any HOA dues.
- Pick a debt-to-income limit and read the maximum price, then try a lower limit to see a more comfortable budget.
“How much house can I afford?” has two answers: what a lender will approve and what fits your life. This calculator gives you the first one, the lender’s view, so you can decide how far below it you want to stay. It works backward from your income to a home price, counting taxes, insurance and HOA dues along the way.
How this home affordability calculator works
Lenders measure affordability with your debt-to-income ratio (DTI): your monthly debt payments divided by your gross monthly income. The calculator starts from the DTI limit you choose and finds your housing budget:
Housing budget = (yearly income ÷ 12) × DTI limit − other monthly debts
It then searches for the highest price where the full payment fits inside that budget:
Principal and interest + (price × tax rate ÷ 12) + (insurance ÷ 12) + HOA ≤ housing budget
Principal and interest use the standard loan formula, M = P × r ÷ (1 − (1 + r)^−n), where P is the loan,
r the monthly rate and n the number of payments. Your cash is split in two: 3% of the price is set aside
for closing costs and the rest becomes the down payment. The loan is the price minus that down payment.
Worked examples
Example 1: $95,000 income, 43% limit
Assume a household earning $95,000 a year with $450 in monthly debts, $40,000 in cash, an assumed 6.5% rate on a 30-year loan, a 1.1% property tax rate, $1,800 a year for insurance and no HOA.
- Monthly income: $95,000 ÷ 12 = $7,916.67.
- Housing budget: $7,916.67 × 43% − $450 = $2,954.17 a month.
- The highest price that fits is about $411,607. Closing costs at 3% take about $12,348 of the cash, so the down payment is about $27,652 (6.7%) and the loan is about $383,956.
- Check: principal and interest $2,426.86 + tax $377.31 + insurance $150 = $2,954.17.
The same household at a 36% limit could afford about $336,992, and at 50% about $486,223. That spread of almost $150,000 is why the DTI you choose matters more than any other input.
Example 2: $60,000 income with HOA dues
A single buyer earns $60,000, pays $300 a month on a car loan, has $20,000 saved, and is looking at condos with $150 HOA dues, a 1.2% tax rate and $1,500 a year for insurance. At a cautious 36% limit and an assumed 6.5% rate over 30 years, the housing budget is $5,000 × 36% − $300 = $1,500. The maximum price is about $179,941, with about $14,602 down and a loan of about $165,340. The HOA dues alone use 10% of the budget, which is why condo buyers often see a lower price than they expect.
What your result means
The maximum home price is the highest price that keeps your total DTI at the limit you picked. It is a ceiling, not a target. Use these reference points when you choose a limit:
- 36% or less: room for savings, repairs and rising taxes.
- 43%: FHA’s standard manual underwriting guideline for total debt (31% for housing alone).
- 45% to 50%: possible on many conventional loans approved through Fannie Mae’s automated system, which allows up to 50%. These approvals need stronger credit, reserves or a bigger down payment.
To see your exact ratios for a specific home, use the debt-to-income calculator.
Program rules that change the answer
| Loan type | Typical DTI guideline | Minimum down payment | Monthly insurance cost to add |
|---|---|---|---|
| Conventional | Up to 50% with automated approval | 3% on some programs | PMI if under 20% down |
| FHA | 31% housing / 43% total (manual); higher with automated approval | 3.5% with a 580+ score | Annual MIP |
| VA | 41% guideline plus a residual income test | 0% | None (funding fee unless exempt) |
| USDA | Set by the program and lender | 0% | Annual guarantee fee |
VA loans also check residual income, the money left each month after major expenses, so a veteran above 41% can still qualify. Our guide to mortgage requirements by loan type explains each program’s limits in more detail.
Assumptions
- Closing costs are 3% of the price and are paid from your cash before the down payment.
- The rate is fixed for the whole term; the box starts at the national weekly average, which is not an offer.
- Property tax is a percentage of the purchase price; insurance and HOA dues stay the same.
- Mortgage insurance is not included. If your down payment is under 20%, the real maximum price is lower.
- Down payment assistance, seller credits and gifts are not included unless you add them to your cash.
Common mistakes
- Using take-home pay. Lenders use gross income, so enter income before taxes.
- Leaving out debts. Every minimum payment on your credit report counts, including student loans in deferment under some programs.
- Treating the maximum as a goal. A payment at 50% DTI leaves little room for emergencies.
- Ignoring rate changes. In Example 1, an assumed 7.5% rate instead of 6.5% lowers the maximum price from about $411,607 to about $379,851. Test a few rates before you shop.
- Forgetting the costs of owning. Repairs, utilities and maintenance are not in DTI but still come out of your budget.
Limits of this estimate
This is an educational estimate, not a preapproval. A lender will verify your income, check your credit, price your mortgage insurance and may count debts differently. Before you make offers, get a preapproval and a Loan Estimate. Once you have a target price, check the full payment with the mortgage payment calculator, and look at down payment assistance programs if cash is what holds your price down. A HUD-approved housing counselor can review your budget for free or at low cost.
For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED
Frequently asked questions
How much house can I afford on my salary?
It depends on your debts, savings, rate and local taxes, not only your salary. Lenders usually let your total monthly debts, including the new house payment, reach 36% to 50% of your gross income. This calculator works backward from that limit to a price.
What debt-to-income ratio should I use?
Use 36% if you want room in your budget for savings and surprises. Use 43% to see a typical FHA manual limit, and 45% or 50% to see the upper end that automated approvals on many conventional loans allow. The higher limits show what is possible, not what is comfortable.
Does this include mortgage insurance?
No. If your down payment is under 20%, a conventional loan adds PMI and an FHA loan adds MIP, which lowers the price you can afford. Check the result with the mortgage payment or FHA MIP calculator and add that cost.
Why does my savings amount change the price so much?
Cash does two jobs. It lowers the loan, which lowers the monthly payment, and it adds directly to the price you can pay. More cash means a bigger price for the same monthly budget.
Do lenders use gross or take-home pay?
Gross pay, meaning income before taxes and deductions. That is why a payment a lender approves can still feel tight on your take-home pay. Check the result against your real monthly spending.
How does the interest rate affect what I can afford?
A higher rate raises the payment on every dollar you borrow, so the same budget supports a smaller loan. In our example, moving from an assumed 6.5% to 7.5% cuts the maximum price by about $32,000.
Is the maximum price the price I should pay?
Not necessarily. It is the upper edge of what a lender may approve. Many buyers aim below it to leave money for repairs, furniture, emergencies and retirement saving.
Are my numbers saved or sent anywhere?
No. The calculator runs in your browser. If you use the copy-link button, your numbers are placed in the link itself so you can share or bookmark them.
Sources
Read the guides
Related calculators
- Debt-to-income (DTI) Find the two ratios lenders check first: how much of your gross income goes to housing, and how much goes to all your monthly debts.
- Down payment savings Set a target home price and down payment, then see your savings goal, how far you are from it and how many months of saving it will take.
- Closing costs Get a planning range for your closing costs and the total cash you will need on closing day, before you have a Loan Estimate in hand.
- Loan-to-value (LTV) Find the ratio lenders use to price your loan, decide on mortgage insurance and set refinance limits: how much you owe compared with what the home is worth.