FinanceCalco

Home Affordability Calculator

Built & reviewed by the FinanceCalco editorial teamHow we test calculatorsUpdated June 2026

Find out how much house you can afford from your income, monthly debts, down payment, and interest rate. The calculator works backward from a healthy debt-to-income ratio to a target home price — and the figures update instantly as you adjust them.

Home you can afford

$320,462.88

Max monthly payment
$2,200.00
Loan amount
$280,462.88
Principal & interest
$1,772.72
Taxes + insurance
$427.28
$
$
$
%
%
back-end ratio (36% typical)
%/yr
%/yr

How your rate changes affordability

$0$125K$250K$375K$500K4.5%5%6%6.5%7%8%8.5%
Affordable price
$2.2KMonthly
Principal & interest$1,772.72Taxes + insurance$427.28
How this is calculatedmethodology

Lenders cap the share of your income that can go to debt — the back-end DTI ratio. The calculator turns that cap into a maximum monthly payment, then solves for the home price whose principal, interest, taxes, and insurance together fill that budget given your rate, term, and down payment.

maxPayment = income ÷ 12 × DTI − debts
maxPayment = (price − down) · f + price · t
maxPayment
Most you can spend per month = monthly income × DTI − existing monthly debts.
f
Monthly principal-and-interest factor per $1 of loan, from the rate and term.
t
Monthly property tax + insurance rate as a share of home value (annual % ÷ 12).
down
Your down payment, subtracted from the home price to get the loan amount.
  • Back-end DTI
  • Excludes HOA/PMI
  • Taxes & insurance as % of value

How to use the home affordability calculator

  1. Enter your annual income, monthly debt payments, and planned down payment.
  2. Set the interest rate, term, and your target debt-to-income (DTI) ratio (36% is a common ceiling).
  3. See the maximum home price and monthly payment that fit your budget.

TipLenders look at DTI. Lowering your other monthly debts raises how much house you can afford.

How to use the home affordability calculator

Enter your annual household income and your current monthly debt payments — car loans, student loans, and minimum credit-card payments. Add the down payment you plan to make and the interest rate and term you expect. The large readout shows the home price you can afford, and the cells below break out your maximum monthly payment, the loan amount, the principal-and-interest portion, and the monthly cost of taxes plus insurance.

The max DTI ratio sets how aggressive the estimate is: 36% is a widely used back-end target, but you can lower it for a more conservative budget or raise it to match a specific loan program. Use the export buttons to download a summary as Excel or CSV, print it to PDF, or copy a link that reopens the calculator with your exact numbers.

How it works and what the number means

Affordability is the mortgage math run in reverse. Instead of starting with a home price, the calculator starts with the most you can pay each month: your gross monthly income times your DTI target, minus your existing debts. That maximum payment has to cover principal and interest and property tax and insurance, so the calculator solves for the home price whose combined monthly cost exactly fills that budget.

The biggest levers are your income, your existing debts, and the interest rate. Paying down debt frees up room in your DTI budget, while a higher rate raises the principal-and-interest cost per dollar borrowed, lowering the price you can support. Remember this figure is what lenders may allow — not necessarily what is comfortable. Leave room for HOA dues, PMI, maintenance, and savings.

Estimates for education only — not a loan offer or financial advice. Actual affordability depends on your lender, credit, taxes, insurance, and fees.

Frequently asked questions

How much house can I afford?

A common rule is that your total monthly housing cost should not push your back-end debt-to-income (DTI) ratio above about 36%. This calculator starts from your income and existing debts, subtracts those debts from your DTI budget to find a maximum monthly payment, then works backward — accounting for property tax and insurance — to the most expensive home that payment can support given your rate, term, and down payment.

What is DTI?

DTI is your debt-to-income ratio: the share of your gross monthly income that goes to debt payments. The back-end ratio used here includes your future housing payment plus all other recurring debts (car loans, student loans, minimum credit-card payments). Most lenders look for a back-end DTI of 36% or lower, though some programs allow more.

What costs aren't included?

This estimate covers principal, interest, property tax, and homeowners insurance. It excludes HOA or condo dues, private mortgage insurance (PMI) on low-down-payment loans, maintenance, utilities, and closing costs. Budget for those separately, since they can meaningfully change what you can comfortably afford.

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