Max Monthly Payment
$2,200.00
Home Affordability Calculator
Estimate the maximum home price you can afford based on income and debts.
Maximum Home Price
$388,063.80
Max Loan Amount
$348,063.80
Down Payment
$40,000.00
What is the Home Affordability Calculator?
A home affordability calculator estimates the most expensive home you can responsibly buy from your income, existing debts, down payment and the mortgage rate. It works backward from a debt-to-income (DTI) limit — the share of your income lenders let you spend on debt — to a maximum loan, then a maximum price.
The formula
The chain runs from your income down to a price ceiling:
Max price = PV(max housing payment, rate, term) + Down payment- Max total debt
- monthly income × DTI limit
- Max housing payment
- max total debt − other monthly debts
- Max loan
- present value of that payment at the mortgage rate and term
- Max price
- max loan + down payment
The estimate covers loan principal and interest — not property tax, insurance or HOA dues, which eat into the same budget.
Worked example
A $90,000 income ($7,500/month), $500 in other monthly debts, $40,000 saved, at a 6.5% rate over 30 years, using a 36% DTI limit.
That leaves $2,200 a month for housing, which supports a loan of about $348,064. Add the down payment and the maximum home price is roughly $388,064.
Prefer your own numbers? Enter them in the calculator above — it recomputes instantly.
Key terms
- Debt-to-income ratio (DTI)
- The percentage of your gross monthly income that goes to debt payments.
- Down payment
- Cash you pay upfront; it lifts your price ceiling dollar for dollar.
- Gross income
- Income before taxes and deductions — the figure lenders use for DTI.
- Back-end DTI
- DTI counting all debts (housing plus car, cards, student loans).
Frequently asked questions
What DTI should I use?
36% is a common conservative back-end limit. Some programs allow 43% or higher, but a higher DTI means a tighter monthly budget.
Does this include taxes and insurance?
No — it covers principal and interest. Property taxes, homeowners insurance and HOA dues reduce what you can truly afford, so budget for them separately.
Is the maximum the amount I should spend?
Treat it as a ceiling, not a target. Borrowing below your maximum leaves room for savings, maintenance and surprises.