Mortgage Affordability Calculator
Find the most expensive home you can afford based on your income, existing debts and down payment. The payment includes principal, interest, property tax, insurance, HOA and PMI.
Three affordability levels for your numbers
| Level | DTI limits | Home price | Loan | Monthly payment | Back-end DTI |
|---|
Estimates only, not financial advice. Lenders also look at your credit score, cash reserves, employment history and loan type, and closing costs are not included.
How to use the Mortgage Affordability Calculator
- Enter your annual gross income (before tax) and your total monthly debt payments.
- Add your down payment, interest rate and loan term.
- Fill in property tax, home insurance, HOA dues and PMI for the area you're looking in.
- Pick a DTI preset or type your own front-end and back-end limits.
- Press Calculate to see the maximum home price, the monthly payment breakdown and how the three affordability levels compare.
How lenders decide how much house you can afford
Most lenders use two debt-to-income (DTI) ratios. The front-end ratio is your total housing payment (principal, interest, property tax, insurance, HOA and PMI, often called PITI) divided by gross monthly income. The back-end ratio adds all your other monthly debt payments. The classic rule is 28% front-end and 36% back-end; FHA and many conventional loans allow around 31/43, and some programs go higher.
So the most you can spend on housing each month is the smaller of front-end limit × income and back-end limit × income − debts. The calculator then searches for the highest home price whose full monthly payment fits inside that budget.
Worked example
Income $90,000 a year ($7,500 a month), $400 of monthly debts, $40,000 down, 6.5% for 30 years, 1.2% property tax, $1,500 a year insurance and 0.5% PMI, using 28/36 limits.
- Front-end limit: 28% × $7,500 = $2,100
- Back-end limit: 36% × $7,500 − $400 = $2,300
- The lower one, $2,100, is the housing budget.
The highest price that fits is about $290,085. The loan is $250,085, giving principal and interest of $1,580.71, property tax of $290.09, insurance of $125.00 and PMI of $104.20 (the down payment is under 20%), for a total of $2,100 a month. The back-end DTI is ($2,100 + $400) ÷ $7,500 = 33.3%.
Common DTI guidelines
| Guideline | Front-end (housing) | Back-end (all debts) | Notes |
|---|---|---|---|
| Classic conservative rule | 28% | 36% | Leaves room for saving and surprises |
| FHA-style standard | 31% | 43% | Typical limits for many government-backed loans |
| Aggressive / with strong compensating factors | 36% | 50% | Possible with high credit scores or large reserves, but tight on a budget |
Being approved for a loan doesn't mean the payment is comfortable. Remember closing costs (often 2–5% of the price), maintenance (around 1% of the home's value a year) and an emergency fund. These results are estimates only and are not financial advice.
Frequently asked questions
How much house can I afford on my salary?
A common rule is that your total housing payment should be no more than 28% of your gross monthly income, and all debts together no more than 36%. With no other debts, 6.75% interest and 20% down, that often works out to roughly 3 to 4 times your annual income, but taxes, insurance and rates change it a lot.
What is the 28/36 rule?
It says housing costs should be at most 28% of gross monthly income (front-end DTI) and total debt payments, including housing, at most 36% (back-end DTI). The calculator uses whichever limit is lower.
What is included in the monthly payment?
Principal and interest on the loan, property tax, homeowners insurance, HOA dues if any, and private mortgage insurance (PMI) when the down payment is less than 20% of the price.
When do I have to pay PMI?
On most conventional loans PMI is required when you put down less than 20%. It typically costs 0.3% to 1.5% of the loan per year and can usually be removed once you reach 20% equity.
Which debts count toward DTI?
Minimum payments on car loans, student loans, credit cards, personal loans, child support and alimony usually count. Everyday bills such as utilities, phone and groceries usually do not.
Is the maximum the amount I should spend?
Not necessarily. The maximum is what lenders may approve, not what's comfortable. Leave room for closing costs, maintenance, savings and emergencies. These results are estimates only, not financial advice.