Home Affordability Calculator
Find out how much home you can afford based on your income, debts, and desired debt-to-income ratio.
Before you calculate
A DTI ceiling is a planning assumption, not lender approval. Budget separately for property tax, insurance, maintenance and closing costs.
How Home Affordability Is Calculated
Lenders use Debt-to-Income (DTI) ratios to determine how large a mortgage you can safely carry. The front-end ratio caps housing costs at 28% of gross monthly income; the back-end ratio caps all debt at 36%. Your maximum loan is back-solved from whichever limit is binding.
Max Monthly P&I = min(Income × 28%, Income × 36% − Monthly Debts) | Loan = Payment × [(1+r)^n − 1] / [r × (1+r)^n]Example Scenarios
Conservative Buyer
On $80,000/year income with $500/month in debts and $60,000 down at 7%, the 36% back-end rule is usually binding. The result gives a realistic ceiling — always budget below the maximum.
High-Income Dual Earner
A household earning $200,000 with minimal debts and a 20% down payment can afford homes well above the median price. Front-end DTI may be the binding constraint here.
Methodology & Assumptions
Calculation uses standard 28/36 DTI guidelines. Taxes and insurance are excluded. Actual approval thresholds vary by lender and loan type (FHA allows higher DTIs).
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.