Mortgage Affordability Calculator

Find out how much house fits your budget — enter your income and debts, and we'll solve for your maximum home price instantly, right in your browser.

📖 How it works & FAQ

Annual gross income ($)

Monthly debt payments ($)

Down payment ($)

Interest rate (% APR)

Loan term

Property tax (% of price / yr)

Home insurance ($ / yr)

Target back-end DTI (%)

How affordability is calculated

Lenders size a mortgage around your debt-to-income ratio (DTI). This calculator uses the back-end DTI: all your monthly debt payments — including the future house payment — divided by gross monthly income. With the default 36% target, someone earning $90,000 a year ($7,500 a month) can put up to $2,700 toward all debts. Subtract existing payments like car loans and credit cards, and what's left is your maximum housing budget. The tool then works the standard mortgage payment formula backward to find the largest home price whose principal & interest, property tax and insurance all fit inside that budget, given your down payment, interest rate and loan term.

Why tax and insurance are included

Principal & interest is only part of the check you write each month. Property tax (often 0.5–2.5% of the home's value per year, depending on your state) and homeowners insurance are usually escrowed into the same payment, and lenders count them in your DTI. Ignoring them makes an affordability estimate look 15–25% rosier than reality, which is exactly how buyers end up house-poor. Both are editable here so you can match your local rates. All figures are estimates only — not financial, lending, tax or legal advice.

How to use it

Enter your annual gross (pre-tax) household income.
Add up required monthly debt payments — car loans, student loans, credit card minimums — and enter the total.
Enter your down payment, expected interest rate and loan term.
Adjust property tax % and annual insurance for your area, and set your target DTI.
Results update live: max home price, max monthly payment with its breakdown, and the DTI used.

FAQ

What DTI should I target?: The classic guideline is 36% back-end. Many lenders approve up to 43–50%, but a lower target leaves room for savings, repairs and life. Try 36% and 43% to see your range.
Does this include PMI or HOA dues?: Not directly. If you'll pay PMI (under 20% down) or HOA fees, add a rough monthly amount to the "monthly debt payments" field or lower your target DTI a few points.
What's the difference between front-end and back-end DTI?: Front-end counts only the housing payment against income; back-end counts housing plus all other debts. This tool solves against back-end and also shows the resulting front-end share.
Is this the same as a pre-approval?: No. Lenders also weigh credit score, employment history and reserves. Use this to set a realistic search range before talking to a lender.