Free house affordability calculator
Find out how much house you can afford — enter income, debts, and rate to see the maximum home price that fits the 28/36 rule, updated live, as you type.
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Estimate based on DTI guideline only. Lenders also consider credit score, assets, employment, and other factors. Consult a licensed lender for pre-approval.
Results are estimates. Consult a professional.
How the house affordability calculator works
Lenders use two debt-to-income ratios — front-end and back-end DTI — to cap how much mortgage you can carry. The calculator applies both limits simultaneously and returns the lower of the two as your maximum affordable payment. It then converts that payment into a maximum loan amount using the standard amortization formula, and adds your down payment to produce a maximum home price.
Where r is the monthly interest rate (annual rate ÷ 12) and n is total payments (term in years × 12). The front-end ratio applies only to housing costs; the back-end ratio stacks all monthly debt obligations — student loans, auto payments, credit cards — against your gross income.
Fannie Mae Selling Guide — B3-6-02 Debt-to-Income RatiosWorked example: $120k household income
The Chen family earns $120,000/year ($10,000/month) gross. They have $800/month in existing debt (car + student loans). Their lender quotes 7% on a 30-year fixed. Estimated property tax + insurance + HOA = $500/month.
Max affordable home by income at 7% / 28% DTI
The table below estimates maximum home prices across household income levels. Assumptions: 7% rate, 30-year term, 20% down payment, 28% front-end DTI cap, no other debts. Add property tax and insurance before comparing to a real offer.
| Annual Income | Max Housing Payment | Max P&I (−$400 est. tax/ins) | Max Loan | Max Home Price |
|---|---|---|---|---|
| $75,000 | $1,750 / mo | $1,350 / mo | $202,000 | $252,000 |
| $100,000 | $2,333 / mo | $1,933 / mo | $289,000 | $361,000 |
| $150,000 | $3,500 / mo | $3,100 / mo | $464,000 | $580,000 |
| $200,000 | $4,667 / mo | $4,267 / mo | $638,000 | $798,000 |
Source: CFPB, Fannie Mae DTI guidelines. Estimates only — actual qualification depends on credit score, reserves, and lender overlays.
Tips for maximizing what you can afford
Affordability is not a fixed number — it shifts with your rate, debts, down payment, and tax/insurance costs. Here are five levers worth pulling before you decide on a price range.
- Pay down high-balance revolving debt first — Credit card balances factor into the back-end DTI. Eliminating a $400/month minimum payment can raise your maximum loan by roughly $60,000 at 7%.
- Compare 15- vs. 30-year terms deliberately — A 15-year loan has a higher payment but builds equity faster and typically carries a lower rate. Run both scenarios to see which fits your cash flow.
- Shop rates aggressively — A 0.5% rate difference on a $350k loan saves roughly $100/month and $36,000 over 30 years. Get at least three lender quotes on the same day.
- Factor in property taxes early — Property tax rates vary from 0.3% to 2.2% of home value annually. A $500k home in a 2% tax state adds $833/month — enough to push you below the front-end DTI cap.
- Get pre-approved, not just pre-qualified — Pre-approval involves verified income and credit documents and gives you a firm ceiling, not just an estimate. Sellers treat pre-approved buyers more seriously in competitive markets.
Accuracy and limitations
The calculator uses published Fannie Mae and CFPB DTI guidelines, which are the most common benchmarks for conventional loans. FHA loans allow back-end DTIs up to 57% with compensating factors. VA and USDA loans use residual income rather than DTI. Your actual approval may differ based on credit score, down payment source, reserves, and lender-specific overlays.
Not financial advice — consult a real estate professional for your specific situation.
Affordability terms defined
About this house affordability calculator
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