Home affordability calculator

How the calculator finds your price

Lenders don't start from the house. They start from your gross monthly income and two ratios. The housing ratio (also called front-end) is the full housing payment divided by income. The total debt ratio, or debt-to-income (DTI, back-end), adds your other monthly debts. The calculator works out the biggest payment each ratio allows, then searches for the highest price whose full payment fits: principal and interest, property tax, insurance, mortgage insurance and HOA dues.

Here is the opening example, worked by hand:

1. 1

   Monthly income

   $100,000 ÷ 12 = $8,333.33 a month before tax.

2. 2

   Apply 28/36

   Housing cap: 28% × $8,333.33 = $2,333.33. Total-debt cap: 36% × $8,333.33 = $3,000, minus $400 of other debts = $2,600 for housing. The lower number wins: $2,333.33.

3. 3

   Find the price that fits

   At $303,000 with $40,000 down, the loan is $263,000. At 7.24% for 30 years, principal and interest are $1,792.34. Tax at 0.89% adds $224.73, insurance $200 and PMI at 0.50% $109.58. Total: $2,326.65, just under the cap.

4. 4

   Repeat at looser limits

   At a 45% total ratio, housing can reach $3,350 a month, which supports about $431,000. At 50%, about $483,000. Prices are rounded down to the nearest $1,000.

Comfortable, at the limit, aggressive

The three prices answer different questions. Comfortable is the 28/36 rule, an old lending guideline that still makes a sensible ceiling for a household budget. At the limit uses the standard maximum for each loan program. Aggressive is the highest ratio a program normally allows, and usually needs strong credit, cash reserves or an automated approval. A loan you can get is not the same as a loan you can live with: at 50%, half of your gross pay goes to debt before income tax, food, child care or savings.

What each loan program accepts

In the calculator, the FHA tiers use 31/43 and 40/50, and the VA tiers use 41% and 50%. FHA adds a 1.75% upfront premium to the loan and an annual premium of 0.50% to 0.55% for most 30-year loans. VA adds a one-time funding fee of 1.25% to 2.15% for first-time use, and has no monthly mortgage insurance. VA borrowers with a service-connected disability rating are usually exempt from the fee. Automated systems at FHA and VA can approve higher ratios than shown here.

Prices by income

Conventional loan, $40,000 down, $400 of other debts, 7.24% for 30 years, 0.89% property tax, $2,400 insurance, 0.50% PMI.

Two things jump out. The $50,000 row stops at $200,000 because that's where the loan passes 80% of the price and PMI starts. And above $832,750, the 2026 conforming loan limit in most counties, a loan becomes a jumbo loan with its own, usually stricter, rules.

What counts as income and debt

Use the income a lender can document, before taxes. Salary and hourly wages count when you have a steady history, usually about two years in the same line of work. Overtime, bonuses, commissions and self-employment income generally need a two-year track record and are averaged, so a strong recent year may count for less than you expect. Child support or alimony you receive counts only if it will continue for at least a few more years.

On the debt side, enter the minimum monthly payments that show on your credit report: car loans, student loans, personal loans, credit card minimums, and any child support or alimony you pay. Leave out rent, utilities, phone, insurance and groceries; the ratio doesn't include them. Student loans in deferment can still count, because lenders often use a set share of the balance when the reported payment is zero. If you co-sign someone else's loan, expect that payment to count as yours too.

What moves the number the most

• Interest rate. Each percentage point changes a 30-year payment by roughly 10% to 12%, so your buying power moves almost as much.
• Other debts. Once the total debt ratio is the limit, as it is in the stretch tiers, a $400 car payment uses up roughly $50,000 of buying power at today's rates. Paying off a small loan before you apply can matter more than saving the same cash.
• Property tax and insurance. The same income buys noticeably less house in Illinois or New Jersey (1.88%) than in Hawaii or Alabama (under 0.4%). Get a real insurance quote in storm-prone areas.
• HOA dues. Every $100 of monthly dues takes roughly $12,000 to $13,000 off the price you can afford at 7.24%.

Before you set a budget

• Check your take-home pay. Ratios use gross income. Compare the payment with what actually lands in your account each month.
• Count what lenders ignore. Child care, utilities, commuting, retirement savings and repairs aren't in the DTI, but they're in your life.
• Keep cash after closing. Closing costs and prepaid escrow come on top of the down payment. Our closing cost calculator estimates them.
• Get pre-approved, then decide. A pre-approval shows what a lender will do. You still choose where in the range to shop.

Sources and assumptions

• Rates: Freddie Mac, Primary Mortgage Market Survey, week of October 29, 2026: 30-year fixed 7.24%, 15-year fixed 6.60%. The same rate is used for all loan types; FHA and VA rates often differ.
• Conventional ratios: Fannie Mae Selling Guide, B3-6-02, Debt-to-Income Ratios (section dated April 2, 2025; Guide published October 7, 2026): 36% manual, up to 45% with credit score and reserves, 50% with Desktop Underwriter. Conforming limit: FHFA, 2026 conforming loan limits ($832,750 baseline).
• FHA: HUD Single Family Housing Policy Handbook 4000.1, manual underwriting ratios (31/43 standard, 40/50 with two compensating factors). Premiums: HUD Mortgagee Letter 2023-05 (1.75% upfront; annual 0.55% above 95% LTV and 0.50% at or below, for 30-year loans up to $726,200; 0.40% and 0.15% for 15-year loans).
• VA: 38 CFR 36.4340 (41% ratio guideline and residual income) and VA funding fee table (updated October 5, 2026; first use 2.15% under 5% down, 1.5% at 5%, 1.25% at 10%). The calculator assumes first use, no exemption, and does not run the residual income test.
• Property tax: Tax Foundation, Property Taxes by State and County, 2026, effective rates on owner-occupied homes from the 2024 American Community Survey. U.S. average 0.89% from NAHB's analysis of the same survey.
• Insurance ($2,400 a year) and PMI (0.50% of the loan) are our estimates. It sits between the last official average, $1,569 for an HO-3 policy in 2022 (NAIC, via the Insurance Information Institute), and 2026 national averages from insurance sites, which run from about $2,490 a year for $400,000 of dwelling coverage (NerdWallet, 2026) to Insurify's projection of $3,057 (Claims Journal, March 18, 2026). The PMI rate is within Freddie Mac's range of $30 to $150 a month per $100,000 borrowed, or about 0.36% to 1.8% of the loan a year (The Math Behind Putting Down Less Than 20%, last reviewed June 6, 2025). DTI definition: CFPB.
• This is an educational estimate, not an offer of credit, a pre-approval or financial advice. Speak with a licensed lender or a HUD-approved housing counselor. Figures checked October 29, 2026.

Common questions