Home Affordability Calculator
Calculate max home price from income and DTI ratio.
About this tool
Estimate the maximum home price you can afford, working backward from your income, a target debt-to-income ratio for housing costs, your down payment, and the loan terms you expect to get.
Key Features
- Works backward from income to maximum home price
- Uses a debt-to-income (DTI) ratio, the standard lender affordability measure
- Accounts for down payment and loan terms
How to Use
- Enter your annual income.
- Enter the maximum percentage of monthly income you want going to housing.
- Enter your planned down payment, interest rate and loan term.
- Click Calculate Affordability.
Benefits
- Set a realistic home-shopping budget before you start looking
- Understand how DTI ratio limits affect what you can borrow
- See how a bigger down payment increases your max home price
Frequently Asked Questions
28% is a commonly cited guideline for housing costs specifically (sometimes called the 'front-end' ratio), but actual lender limits vary by loan program and your total debt picture \u2014 use this as a planning estimate, not a guaranteed approval amount.
No \u2014 this calculates principal and interest only from the maximum payment. Real housing costs include property tax, homeowner's insurance, and possibly HOA fees, which would reduce how much loan payment you can actually afford within the same DTI limit.