House Affordability Calculator
Estimates the most you can pay for a house from income, debts, down payment, rate, term, property tax, insurance and PMI, with 28/36 or FHA 31/43 ratios.
Last updated: October 2026
Maximum House Price
$305,692
This calculator gives an estimate for general information only. It is not financial, tax or investment advice. Check the figures with a qualified professional before making decisions, and follow the rules that apply where you live.
Formula below · 4 sources (CFPB, comptrollerofthecurrency.gov, bankrate.com, usaa.com) · Updated Oct 2026
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About this calculator
Lenders judge affordability with two debt-to-income ratios, both on gross (pre-tax) monthly income. The housing ratio caps the full housing payment: principal, interest, property tax, insurance, HOA dues and mortgage insurance. The total ratio caps housing plus all other debt payments such as car loans, student loans and card minimums.
The ratios
The traditional conventional guideline is 28% for housing and 36% in total; the CFPB notes that lenders generally prefer total debt at 36% or less, though some go to 43% or higher. FHA's standard manual-underwriting ratios are 31% and 43%.
How the price is found
The calculator takes the smaller of the two limits as your housing budget, subtracts any insurance and HOA dues you enter (leave them out and the result is higher than you can really afford), and finds the price whose loan payment, property tax and mortgage insurance fit in what is left:
Price = (budget − insurance and HOA) ÷ [(1 − down %) × f + tax rate ÷ 12 + PMI]
where f = r ÷ (1 − (1 + r)⁻ⁿ) is the monthly payment per dollar borrowed. Mortgage insurance applies only below 20% down; for conventional loans it generally costs 0.46% to 1.5% of the loan a year, depending mostly on credit score.
A lender may approve more than this, especially with strong credit, but the payment is what you live with. This is an estimate for planning, not financial advice.
How to use
Enter gross monthly income, other monthly debt payments and the loan terms, and add your monthly home insurance and HOA dues for a tighter figure. Defaults: $7,500 income, $800 of other debts, 20% down, 6.8% for 30 years, 1.2% property tax, insurance left blank. Step 1: housing limit 28% × 7,500 = $2,100; total limit 36% × 7,500 − 800 = $1,900. The smaller, $1,900, is the budget. Step 2: the payment per dollar borrowed is 0.006519; per dollar of price that is 0.8 × 0.006519 + 0.012 ÷ 12 = 0.006215. Step 3: $1,900 ÷ 0.006215 ≈ $305,692. Adding $150 a month for insurance and HOA lowers that to about $281,559. With 10% down (and 0.5% PMI) and no insurance entered, the same income supports about $262,347.
Frequently asked questions
What is the 28/36 rule?
A guideline that your housing payment should be no more than 28% of gross monthly income and all debt payments together no more than 36%. The calculator applies whichever limit is tighter.
Which DTI limits should I use?
Use 28/36 for a conservative budget or a conventional loan. Choose 31/43 to see what FHA's standard manual-underwriting ratios allow. Lenders using automated underwriting may approve higher ratios, but the payment would take a larger share of your income.
How does the down payment change the result?
A larger down payment means a smaller loan for the same price, and at 20% or more there is no private mortgage insurance. Both let the same monthly budget support a higher price.
What should I enter for mortgage insurance?
Conventional PMI generally runs 0.46% to 1.5% of the loan a year, lower with better credit. It is only applied when the down payment is under 20%. FHA loans have their own mortgage insurance premium; enter that rate if you choose the FHA limits.
Is the result the price a lender will approve?
Not exactly. Lenders also look at credit score, savings, the loan program and their own overlays. Use the result to set a search range, then get a preapproval.
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