Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment.
Your financial details
Debt-to-income breakdown
What changes your budget
How this calculator works
This calculator uses the standard debt-to-income (DTI) ratio that lenders apply when qualifying you for a mortgage. Your gross monthly income multiplied by the DTI limit gives the maximum total monthly debt you can carry — subtract your existing monthly debt payments, and the remainder is the maximum housing payment you qualify for.
From that maximum payment, the calculator works backwards using the amortization formula to find the loan amount, then adds your down payment to get the home price. The result is a conservative estimate — your actual limit depends on your credit score, employment history, assets, and the specific lender.
The 28/36 rule explained
The classic guideline says housing costs should be no more than 28% of gross monthly income (front-end ratio), and total debt payments no more than 36% (back-end ratio). Many modern lenders allow up to 43% — and some up to 50% for well-qualified borrowers. This calculator defaults to 43%, which reflects current conventional loan guidelines.
The most powerful thing you can do to increase your budget is pay down existing debt. Every $100/month you eliminate in debt payments translates directly into more housing budget. A 0.5% lower interest rate also meaningfully increases purchasing power.
Frequently asked questions
A common rule is that your monthly housing costs should not exceed 28% of your gross monthly income. Your total monthly debt payments — including housing — should stay under 36–43% of gross income. On an $80,000 annual salary, that means a housing budget of roughly $1,867/month, which at 6.8% over 30 years supports a home price around $290,000 with 10% down.
Lenders use two DTI ratios. The front-end ratio (housing costs ÷ gross income) should typically be under 28%. The back-end ratio (all monthly debts ÷ gross income) should be under 43% for conventional loans, though some lenders allow up to 50% with strong compensating factors like a large down payment or excellent credit.
Yes, significantly. A higher credit score qualifies you for lower interest rates, which directly increases how much house you can afford at the same monthly payment. Going from a 680 to a 760 score can reduce your rate by 0.5–1%, which on a $300,000 loan translates to roughly $80–160 more purchasing power per month.
This calculator estimates based on income, debts, and standard ratios. It does not account for your specific credit score, employment history, assets, or lender-specific guidelines. Closing costs (typically 2–5% of the purchase price) and cash reserves required by lenders are also separate from the down payment. Always get a pre-approval from a lender for an accurate figure.