House Affordability Calculator
Enter Financial Profile
Affordability Results
| Affordable Home Price | — |
|---|---|
| Mortgage Loan Amount | — |
| Monthly Mortgage P&I | — |
| Monthly PMI Payment | — |
| Monthly Property Tax | — |
| Monthly Home Insurance | — |
| Monthly HOA Fee | — |
| Total Monthly Housing Cost | — |
| Achieved Front-End DTI | — |
| Achieved Back-End DTI | — |
How to Use This House Affordability Calculator
Online listings show homes priced well above what your lender would actually approve. The gap usually comes down to debt-to-income math—not willpower. Enter your income, cash for down payment, monthly debts, and loan assumptions here to reverse-engineer a realistic price ceiling before you fall in love with a floor plan.
- Enter annual household income and cash for down payment. Income should be gross (before taxes) to match lender DTI math.
- Add monthly non-housing debts. Include car payments, student loans, and credit card minimums—not utilities or groceries.
- Set rate, term, tax, insurance, and HOA. Property tax and insurance are percentages of home price; HOA is a flat monthly fee.
- Choose a DTI limit preset. Conventional (28/36), FHA (31/43), VA (41% back-end), or custom front/back caps.
- Press Calculate. Review affordable home price, loan amount, full monthly housing breakdown, PMI if applicable, and achieved DTI ratios.
Check your current DTI on the Debt-to-Income Ratio Calculator, or model a specific payment on the Mortgage Calculator.
House Affordability Formulas and Practical Applications
Lenders treat affordability like a bucket with two fill lines: one for housing alone, one for housing plus everything else you owe. Think of front-end DTI as the rent on your financial bandwidth for the house itself, and back-end DTI as the full debt load including car and student loans.
Front-end and back-end limits
Max Housing Payment = Gross Monthly Income × Front-End Limit
Max Total Debt Payment = Gross Monthly Income × Back-End Limit
Housing Budget = min(Max Housing, Max Total Debt − Other Monthly Debts)
Under the conventional 28/36 rule, a household earning $100,000/year ($8,333/month gross) can target up to $2,333 in housing and $3,000 total debt. With $250/month in other debts, housing is capped at $2,333 unless the back-end binds first.
Solving for home price
Total housing cost combines P&I, PMI (when down payment is under 20%), property tax, insurance, and HOA. The calculator solves for the price where that total equals your housing budget, using your down payment cash as a fixed input.
Frequently Asked Questions
What is the 28/36 rule for home affordability?
Conventional guidance caps housing costs at 28% of gross monthly income (front-end DTI) and total debt payments at 36% (back-end DTI). This calculator uses those limits by default.
Does this calculator include PMI?
Yes. When your down payment implies less than 20% equity, the tool estimates a monthly PMI line based on the loan amount and includes it in total housing cost.
Can I use FHA or VA DTI limits?
Yes. Select FHA (31% front / 43% back) or VA (41% back-end only) from the DTI Limit dropdown, or enter custom front and back percentages.
How are property tax and insurance estimated?
You enter annual property tax and home insurance as percentages of home price. The calculator applies those rates to the solved affordable price to build monthly escrow-style lines.
Is the affordable home price a loan approval guarantee?
No. This is a budgeting estimate. Lenders also weigh credit score, employment history, reserves, and program-specific rules before approving a loan.