House Affordability Calculator

Estimate how much house you can afford from household income and DTI, or from a fixed monthly housing budget — including tax, insurance, HOA, PMI, and closing costs.

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Estimate how much house you can afford from household income and a loan-program DTI cap, or from a fixed monthly housing budget. The result includes the loan, down payment, 3% closing costs, monthly principal and interest, and the tax, insurance, HOA, PMI, and maintenance that make up a full housing payment.

DTI planning presets

Preset	Front-end	Back-end	What the calculator models
Conventional scenario	28%	36%	PMI estimate under 20% down
FHA scenario	31%	43%	Upfront MIP 1.75% plus 0.5%/yr MIP assumption
VA scenario	—	41%	Funding-fee assumption; no front-end threshold
Custom	—	10–50%	5% steps; PMI under 20% down

Examples

Conventional 28/36 on $120,000 income

A household earning $120,000 with no other debt, 20% down, 6.792% on a 30-year loan, 1.5% property tax, and 0.5% insurance can afford about $407,107. The loan is $325,685, monthly P&I is $2,121, and the all-in monthly housing cost including 1.5% maintenance is $3,309.

Same buyer with $1,000 of monthly debt

Other debts eat the back-end room. Housing is capped at 36% − $1,000, so the affordable price drops to about $378,028.

Fixed $3,500 monthly budget

With taxes and fees included in a $3,500 budget (same rate, term, and 20% down), the affordable price is about $430,621. Uncheck fees and the whole budget goes to P&I, raising the price to about $671,638.

Formula

The loan is the house price minus the down payment. Principal and interest use the standard amortizing payment for a loan P, monthly rate r (APR ÷ 12), and n monthly payments:

P&I = P · r(1 + r)^n / ((1 + r)^n − 1)

Monthly housing cost for the DTI cap is P&I plus property tax, HOA, and insurance (each annual amount ÷ 12), plus PMI at 0.5%/year of the loan when the down payment is under 20%. The calculator solves the house price so that cost equals the housing limit:

Conventional  housingLimit = min(0.28, 0.36 − debt/income) × monthly income
FHA           housingLimit = min(0.31, 0.43 − debt/income) × monthly income
VA            housingLimit = 0.41 × monthly income − monthly debt
Custom        housingLimit = dti% × monthly income − monthly debt

Closing costs are 3% of the house price. Maintenance at 1.5% of price is shown on the income tab but is not part of DTI.

Putting 20% down avoids PMI and usually raises the house price you can support at the same DTI cap.

How to use the result

Treat the price as a scenario generated from the displayed assumptions. The default 3% closing cost, 1.5% maintenance, 0.5% PMI/MIP, tax, insurance, and funding-fee figures are editable planning inputs rather than quotes. Compare the result with the lender's Loan Estimate and keep cash reserves outside the down payment.

Frequently asked questions

How much house can I afford?

The calculator offers 28/36 as a conservative planning preset and solves the house price whose estimated housing and recurring debt reach that threshold. It is not an underwriting decision: lenders apply program, credit, reserve, income, and property rules that this tool does not model.

What is the difference between front-end and back-end DTI?

Front-end DTI is monthly housing cost divided by gross monthly income. Back-end DTI adds other recurring debts (car, student loans, credit cards) to housing, then divides by income. The 28/36, 31/43, and 41% choices here are planning scenarios. They are not universal approval caps, and users can select Custom to model a lender-provided target.

Does PMI change how much I can afford?

Yes. If the down payment is under 20%, the calculator adds private mortgage insurance at 0.5% of the loan per year to monthly housing costs, which lowers the house price that still fits the DTI cap.

Are maintenance costs included in DTI?

No. On the income tab, maintenance is shown at 1.5% of the house price per year so you can see a realistic monthly all-in cost, but lenders do not count it in DTI. On the budget tab you can fold maintenance into the monthly budget if you check “include tax and fees.”

What closing costs are assumed?

Estimated closing costs are 3% of the house price. FHA loans also add a 1.75% upfront mortgage insurance premium on the loan amount. The total one-time amount at closing is the down payment plus those items.