This calculator uses industry-standard debt-to-income (DTI) ratios to determine the maximum home price you can afford. It accounts for your full housing payment (principal, interest, taxes, insurance, PMI, HOA) plus existing debts, then back-solves the largest mortgage you qualify for.
Total monthly housing payment รท gross monthly income. Most lenders cap this at 28% for conventional loans. It includes principal, interest, property tax, insurance, PMI, and HOA.
All monthly debt (housing + car + student loans + credit cards) รท gross monthly income. Conventional loans typically cap this at 36%. FHA allows up to 43%. The lower of the two ratios is your binding constraint.
The four components of your housing payment: Principal, Interest, Taxes, Insurance, plus HOA dues. PMI is added if your down payment is less than 20%, and drops off once you reach 20% equity.
A 1% rate change can swing your buying power by roughly 10%. The sensitivity table shows how much house you can afford at several rate scenarios, so you can see the impact of waiting for rates to move.
Enter your income and loan details to see results
Enter your income and loan details to see results
Enter your income and loan details to see results
Enter your income and loan details to see results
This calculator estimates the maximum home price you can qualify for using the lender guideline known as the 28/36 rule, then stress-tests that number against higher rates, higher taxes, and tighter debt-to-income thresholds so you don't buy at the ceiling of what a bank will approve. Lenders look at your gross income and recurring debts, not your take-home pay, which is why the "maximum" price here is almost always higher than the price that actually feels comfortable each month.
Monthly principal & interest on a fixed-rate mortgage:
Where L is the loan amount, c is the monthly interest rate (annual rate รท 12), and n is the number of monthly payments (360 for a 30-year loan). The calculator then adds monthly property tax, insurance, HOA, and PMI (when down payment is under 20%) to get full PITI, and solves backwards from the DTI-allowed budget to find the maximum loan โ and therefore the maximum price.
Say you earn $100,000/year ($8,333/month) with no other debts, a 10% down payment, a 6.5% rate on a 30-year fixed, property taxes of $300/month, insurance of $150/month, and no HOA:
Most conventional lenders look for a front-end DTI of 28% or less and a back-end DTI of 36% or less. FHA loans often allow back-end DTIs up to 43%โ50% with compensating factors like strong credit, cash reserves, or a larger down payment.
Conventional loans typically require 3%โ5% down (20% to avoid PMI). FHA loans require 3.5% down with a credit score of 580+. VA and USDA loans allow 0% down for eligible borrowers. A larger down payment lowers your monthly payment and eliminates PMI.
Yes. When your down payment is below 20%, the calculator estimates private mortgage insurance (PMI) at a typical 0.5% annual rate on the loan balance and adds it to your monthly PITI.
Lenders qualify you on gross (pre-tax) income, so the calculator uses that. For a comfort check, re-run the numbers using your take-home pay to see whether the payment still fits your real monthly budget.
A higher credit score lowers your mortgage rate and PMI premium, which raises the loan amount you qualify for at the same DTI. Dropping your rate by 1% can increase your maximum price by roughly 10%.