Home Affordability

Calculate how much house you can afford.

Formula & Methodology

Affordable price ≈ (monthly housing budget / mortgage payment per $1,000) × 1,000, constrained by DTI and down payment.

Worked Example

A $2,400/month budget at 6.8% over 30 years supports roughly a $360,000 loan before taxes and insurance.

Frequently Asked Questions

What DTI ratio do lenders allow?

Most lenders prefer a total debt-to-income ratio under 43%, with housing costs under 28–31% of gross income.

Does this include taxes and insurance?

Affordability should account for property taxes, insurance, and HOA dues, not just principal and interest.

How does the down payment matter?

A larger down payment lowers the loan amount and may eliminate PMI, increasing the price you can afford.

Browse all Financial Calculators

Related Calculators