Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment.
Your financial details
Rate used: 7.28% (no adjustment)
How your credit score changes this
With a 760+ score (est. 7.03%) you could afford about $6,456 more.
| Credit score | Est. rate | You could afford |
|---|---|---|
| 760+ | 7.03% | $336,054 |
| 700–759 | 7.28% | $329,598 |
| 660–699 | 7.43% | $325,825 |
| 620–659 | 7.63% | $320,907 |
| 580–619* | 8.03% | $311,449 |
| Below 580* | 8.28% | $305,781 |
Estimates only. Your rate is treated as a typical 700–759 rate; other ranges are adjusted using the gaps between myFICO's average 30-year fixed APRs by score (May 2026). *Below 620, no rates are published by our sources, so those adjustments are rough. Lenders may charge lower scores upfront fees or points instead of a higher rate. Data as of 2026-10-03.
Debt-to-income breakdown
Your total debt-to-income ratio is 43.0% of gross monthly income. Lenders typically approve up to 43%.
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 $246,000 with 10% down once property taxes, insurance, and PMI are included. This calculator uses the higher 43% back-end limit by default, which is why its result is larger.
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, mainly through your interest rate. In myFICO's May 2026 data, the average 30-year fixed APR was 6.70% for scores of 760–850, 6.95% for 700–759, and 7.36% for 620–639. Using this calculator's defaults ($80,000 income, $300/month debts, $30,000 down, 43% DTI, 30 years) and its estimated rate adjustments, a 760+ borrower could afford about $15,146 more home than a 620–659 borrower. Lenders may also charge lower scores upfront fees (Fannie Mae loan-level price adjustments) instead of, or on top of, a higher rate.
With a score in the 580–619 range, a conventional loan is usually out of reach, since most lenders require 620 or higher. FHA loans allow 3.5% down with a score of 580+ (scores of 500–579 need at least 10% down). With this calculator's defaults and a rough +0.75% rate estimate for that range, an $80,000 income supports about $311,449, versus $329,598 with a 700–759 score. Property taxes and homeowners insurance are included, but FHA mortgage insurance (which replaces PMI on FHA loans) isn't modeled, so treat it as an upper bound and confirm with an FHA-approved lender.
This calculator estimates based on income, debts, and standard ratios. Credit score is reflected only through an estimated rate adjustment by score range; the monthly payment includes estimated property tax, homeowners insurance, and PMI (when down is under 20%), but not HOA dues, FHA/VA-specific fees, 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.
Educational purposes only. Results are estimates based on your inputs and general assumptions. Actual rates, costs, and terms will vary. Learn about our methodology →