Home Affordability Calculator
Enter your income, existing debts, down payment, and target DTI to instantly see the maximum home price you can comfortably afford — with a full monthly payment estimate.
How it works
This calculator back-solves the standard amortization formula. Starting from your income and target DTI, it computes the maximum monthly housing budget, deducts property tax and insurance, and solves algebraically for the home price that produces an amortizing P&I payment equal to the remainder. All calculations run in your browser instantly.
Frequently Asked Questions
How is the maximum home price calculated?
The calculator works backwards from your target DTI. It computes the maximum total monthly housing budget (income × DTI% − existing debts), then solves for the home price that produces a P&I payment plus estimated property tax and insurance equal to that budget. The down payment is then added back to get the home price.
What is a good DTI ratio for a mortgage?
Most conventional lenders prefer a back-end DTI (all debts / income) below 36%. FHA and VA loans may allow up to 43–50%. A front-end DTI (housing only) below 28% is generally considered conservative. The default in this calculator is 36%, but you can adjust it to match your target lender's guidelines.
Does this include property tax and insurance?
Yes. The calculator deducts estimated monthly property tax (based on the % you enter) and a fixed monthly insurance amount from your housing budget before solving for the loan amount. This gives a more realistic affordability estimate than P&I alone.
Should I use gross or net income?
Lenders qualify you on gross (pre-tax) income, so use your gross annual income. The calculator divides by 12 to get monthly gross income and applies the DTI percentage to that figure, matching how underwriters assess affordability.