Finance & Money
House Affordability Calculator
Use this affordability calculator to estimate a home price range from a monthly payment limit.
Estimated affordable home price
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- Max housing payment
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- Estimated loan amount
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Study path
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How home affordability is estimated
This calculator works backward from income to a home price. It sets a monthly payment ceiling using a debt-to-income (DTI) target, subtracts your existing debt payments, converts the remaining payment capacity into a loan amount at your rate and term, then adds the down payment to estimate a price.
The 28/36 rule
The 28/36 rule is a common budgeting guideline: keep housing costs under about 28% of gross monthly income, and total debt payments (housing plus car loans, student loans, credit cards) under about 36%. This calculator uses the total-DTI side — the 36% figure by default — as the payment ceiling.
$95,000 income, $450 in monthly debts, 36% DTI
Monthly gross income is $95,000 / 12 = $7,917. At 36% DTI, total debt capacity is about $2,850. Subtracting $450 in existing debts leaves roughly $2,400 for housing. At an illustrative 6.75% over 30 years, that supports a loan near $370,000; add a $45,000 down payment for an estimated price around $415,000.
| Input change | Effect on estimated price |
|---|---|
| Higher existing debts | Lower — debts eat into the DTI ceiling first |
| Higher interest rate | Lower — each dollar of payment supports less loan |
| Longer term | Higher price, but more total interest over the life of the loan |
| Bigger down payment | Higher — added directly on top of the loan amount |
- The estimate covers principal and interest only; taxes, insurance, HOA, and PMI reduce how much price a given payment supports.
- Lenders apply their own underwriting rules, so an affordability estimate is not a preapproval or an approval prediction.
- A comfortable budget is often below the maximum a formula allows — the ceiling is a limit, not a goal.
How to use it
- Enter gross income and existing debts.
- Enter down payment and loan terms.
- Use DTI to set a payment ceiling.
How to read the answer
The result is a rough price based on payment capacity, not a lender approval.
Common mistakes and edge cases
- Full housing payment includes taxes and insurance.
- Lenders use detailed underwriting rules.
- A comfortable budget can be lower than maximum approval.
Worked examples
Moderate DTI
Estimated affordable home price
$415,028.84
Debt-heavy scenario
Estimated affordable home price
$210,369.08
Frequently asked questions
Is this a mortgage preapproval?+
No. It is an affordability estimate.
What DTI should I use?+
Many rules of thumb use a total DTI around 36%, but comfort and lender rules vary.
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Last updated: May 8, 2026