Home Affordability Calculator
Find the highest home price your income and debts can support. The calculator applies two debt-to-income limits and tells you which one is holding you back.
Summary
Highest affordable home price$276,958
You can afford a home up to about $276,958, with a housing payment of up to $2,217 a month. Your housing payment limit is what caps the price.
- Highest monthly housing payment
- $2,217
- Loan amount
- $246,958
- Principal and interest
- $1,710
- Limit that caps your budget
- Housing payment limit
Showing an example with default numbers. Change any field to see your own result. The rate field starts at the 30-year fixed national average (7.4%, week of October 15, 2026). Use your own quote for a closer answer.
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Charts
Tap or hover the chart to see values.
- Principal and interest $1,710
- Property tax $254
- Insurance $150
- PMI $103
View as table
| Cost item | Amount |
|---|---|
| Principal and interest | $1,710 |
| Property tax | $254 |
| Insurance | $150 |
| PMI | $103 |
View as table
| Year | Maximum price |
|---|---|
| 5.9% | $310,695 |
| 6.4% | $298,722 |
| 6.9% | $287,492 |
| 7.4% | $276,958 |
| 7.9% | $267,074 |
| 8.4% | $257,796 |
| 8.9% | $249,084 |
Maximum price by interest rate
| Interest rate | Maximum price | Loan amount | Principal and interest | Highest monthly housing payment |
|---|---|---|---|---|
| 5.9% | $310,695 | $280,695 | $1,665 | $2,217 |
| 6.4% | $298,722 | $268,722 | $1,681 | $2,217 |
| 6.9% | $287,492 | $257,492 | $1,696 | $2,217 |
| 7.4% | $276,958 | $246,958 | $1,710 | $2,217 |
| 7.9% | $267,074 | $237,074 | $1,723 | $2,217 |
| 8.4% | $257,796 | $227,796 | $1,735 | $2,217 |
| 8.9% | $249,084 | $219,084 | $1,747 | $2,217 |
Values are rounded to whole dollars; totals use unrounded figures.
Compare scenarios
Your numbers next to common alternatives. Each column recalculates as you change the form.
| Your numbers | 31/43 ratios (FHA-style) | Rate 1 point lower | $10,000 more down | |
|---|---|---|---|---|
| Highest affordable home price | $276,958 | $305,721 | $298,722 | $285,848 |
| Difference vs your numbers | — | +$28,763 | +$21,764 | +$8,890 |
| Highest monthly housing payment | $2,217 | $2,454 | $2,217 | $2,217 |
| Difference vs your numbers | — | +$238 | $0 | $0 |
| Principal and interest | $1,710 | $1,909 | $1,681 | $1,702 |
| Difference vs your numbers | — | +$199 | −$29 | −$8 |
How to use it
- Enter your gross yearly income and the monthly payments on your other debts.
- Enter your down payment, an interest rate and a loan term.
- Add your local property tax rate, insurance, HOA dues and a PMI rate.
- Keep the 28% and 36% limits or set your own.
- Read the highest price and which limit is capping it, then test other rates and down payments.
How do you use this home affordability calculator?
Enter your gross income and other monthly debts, then your down payment, rate and local costs. The calculator finds the highest price where the full house payment stays under both of your debt-to-income limits, and names the limit that is holding you back.
Tips for each input:
- Income: use gross pay for everyone who will be on the loan. Lenders use pre-tax income.
- Other debts: use the minimum monthly payments from your credit report, not the balances.
- Down payment: enter only the cash going toward the price. Keep closing costs and reserves separate.
- Rate: test a range. A one-point change moves the result by tens of thousands of dollars.
- Limits: 28% and 36% are cautious defaults. Raise them only to see what a lender might allow.
How is the maximum price calculated?
The calculator first finds your highest monthly housing payment, then works backward to a price. It solves for the price where principal, interest, tax, insurance, HOA dues and any PMI add up exactly to that payment.
Step 1 sets the payment cap:
- Housing cap = gross monthly income × front-end limit
- Debt cap = gross monthly income × back-end limit − other monthly debts
- Highest housing payment = the smaller of the two
Step 2 converts it to a price. Principal and interest per dollar borrowed come from the standard loan formula, M = P × r(1 + r)^n / ((1 + r)^n − 1), where r is the monthly rate and n the number of payments. Tax is price × tax rate ÷ 12, insurance is the yearly premium ÷ 12, and PMI (loan × PMI rate ÷ 12) applies only if the loan would be more than 80% of the price.
The result does not include closing costs, FHA’s upfront premium, maintenance or utilities, and it assumes taxes and insurance stay where you set them.
What does a worked example look like?
A household earning $95,000 with $450 of other monthly debts and $30,000 down can afford a home of about $296,000 at an example rate of 6.5%, using 28/36 limits. The housing-payment limit, not the debts, is what caps the price.
The rate changes the answer even when income stays the same:
| Example rate (30-year) | Highest price | Loan amount | Principal and interest |
|---|---|---|---|
| 5.5% | $320,843 | $290,843 | $1,651 |
| 6.5% | $296,418 | $266,418 | $1,684 |
| 7.5% | $274,931 | $244,931 | $1,713 |
These are example rates. For current averages, see Freddie Mac’s weekly Primary Mortgage Market Survey.
What does your result mean, and what changes it?
Your result is a price ceiling based on the limits you chose, not a lender’s approval. Lenders apply their own ratios, credit rules and reserve requirements, and some allow much more debt than 36%. A higher approval can feel very different once you are paying it.
Published limits vary by loan type:
- Fannie Mae: up to 50% total DTI through its automated system, or 36% (up to 45% with the required credit score and reserves) when underwritten by hand, per its Selling Guide.
- FHA: HUD’s Handbook 4000.1 starts manual underwriting at 31% housing and 43% total debt, rising to 40% and 50% with compensating factors.
- Ability to repay: under federal rules, lenders must consider either your DTI or your residual income, as the CFPB explains on its Qualified Mortgage page.
Location matters too. Property tax rates differ by county, and in costly areas the 2026 conforming loan limit of $832,750 for one unit (up to $1,249,125 in high-cost areas) can cap the loan size for conventional financing.
What are the most common mistakes?
Most errors come from optimistic inputs. Watch for these:
- Using take-home pay as income. The math is built for gross income; using net pay double-counts taxes.
- Leaving out small debts. A $150 store card payment still counts.
- Putting every dollar into the down payment. You still need closing costs and an emergency fund.
- Ignoring local taxes and insurance. Both can differ a lot from the defaults.
- Treating the maximum as a target. The CFPB suggests you track your spending to know what monthly payment you can handle.
Where should you go next?
Turn your price into a full payment with the mortgage payment calculator, or flip the question around with the income needed calculator. To check your ratios on their own, use the debt-to-income ratio calculator.
For more context, read how much house you can afford, how much down payment you need and prequalification vs. preapproval.
Questions about this calculator
How much house can I afford on $95,000 a year?
In our example, about $296,000. That assumes $450 of other debts, $30,000 down, an example rate of 6.5%, a 1.1% tax rate, $1,800 of insurance and 28/36 limits. Change any of those and the answer changes, so enter your own numbers.
Why does the calculator use two limits?
Lenders look at both. The front-end ratio compares your house payment to income, and the back-end ratio adds your other debts. The calculator uses whichever limit gives the lower house payment, and shows you which one it was.
Should I raise the limits to 43% or 50%?
You can, to see what a lender might approve. Fannie Mae allows up to 50% total debt-to-income through its automated system, and FHA manual underwriting allows up to 43%, or more with compensating factors. But a higher limit is a ceiling, not a comfortable budget.
Does the result include closing costs?
No. The down payment you enter goes entirely toward the price. Keep separate cash for closing costs, moving and an emergency fund, or lower the down payment figure to leave room for them.
Why did my maximum price drop when I lowered my down payment below 20%?
Two reasons. You borrow more for the same price, and the calculator adds PMI once your loan is above 80% of the price. Both use up part of your monthly budget.
Does the calculator work for FHA loans?
Roughly. Enter the FHA annual premium as the PMI rate and FHA-style limits such as 31% and 43%. It does not add FHA's 1.75% upfront premium, which is usually rolled into the loan.
Which debts should I include?
Include minimum monthly payments that appear on your credit report, such as car loans, student loans, credit cards and personal loans, plus child support or alimony. Do not include utilities, phone bills or your current rent.
What if the result is higher than I am comfortable paying?
Trust your budget. Lower the 28% and 36% limits until the monthly payment fits your take-home pay and savings goals, and shop at that price.
Sources
- What is a debt-to-income ratio? (opens in a new tab)Consumer Financial Protection Bureau · Checked
- B3-6-02, Debt-to-Income Ratios (Selling Guide) (opens in a new tab)Fannie Mae · Checked
- FHA Single Family Housing Policy Handbook 4000.1 (opens in a new tab)U.S. Department of Housing and Urban Development · Checked
- What is a Qualified Mortgage? (opens in a new tab)Consumer Financial Protection Bureau · Checked
- Buying a house: Prepare to shop (opens in a new tab)Consumer Financial Protection Bureau · Checked
- FHFA Announces Conforming Loan Limit Values for 2026 (opens in a new tab)Federal Housing Finance Agency · Checked
- Mortgage Rates: Primary Mortgage Market Survey (opens in a new tab)Freddie Mac · Checked
This tool gives estimates for education, not a loan offer or financial advice. Your lender’s numbers, fees and rules may differ. How we research · Disclaimer