Estimate how much house you can afford using income, monthly debts, down payment, mortgage rate, housing costs, DTI, or a fixed monthly budget.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Sep 2026 | $2,054.95 | $293.91 | $1,761.04 | $324,820.72 |
| Oct 2026 | $2,054.95 | $295.50 | $1,759.45 | $324,525.22 |
| Nov 2026 | $2,054.95 | $297.10 | $1,757.84 | $324,228.12 |
| Dec 2026 | $2,054.95 | $298.71 | $1,756.24 | $323,929.41 |
| Jan 2027 | $2,054.95 | $300.33 | $1,754.62 | $323,629.09 |
| Feb 2027 | $2,054.95 | $301.95 | $1,752.99 | $323,327.13 |
| Mar 2027 | $2,054.95 | $303.59 | $1,751.36 | $323,023.54 |
| Apr 2027 | $2,054.95 | $305.23 | $1,749.71 | $322,718.31 |
| May 2027 | $2,054.95 | $306.89 | $1,748.06 | $322,411.42 |
| Jun 2027 | $2,054.95 | $308.55 | $1,746.40 | $322,102.87 |
| Jul 2027 | $2,054.95 | $310.22 | $1,744.72 | $321,792.65 |
| Aug 2027 | $2,054.95 | $311.90 | $1,743.04 | $321,480.74 |
House affordability is an estimate of the purchase price and mortgage amount supported by the income, debt, down-payment, interest-rate, term, and housing-cost assumptions entered into the calculator. A lender's qualification amount and a household's comfortable spending limit are not necessarily the same. The calculator focuses on the mathematical relationship between income, qualifying debt and recurring housing costs. It should therefore be used to compare scenarios rather than treated as an approval amount.
The income-based mode converts annual household income into gross monthly income and applies the selected front-end and back-end DTI framework. The front-end ceiling is gross monthly income multiplied by the selected housing ratio. The back-end ceiling is gross monthly income multiplied by the selected total-debt ratio, less existing monthly debt. The engine uses the lower of those two housing ceilings, then solves backward for the mortgage principal and purchase price. In the validated baseline, $120,000 annual income gives $10,000 gross monthly income, a $2,800 front-end ceiling, and $3,100 of back-end housing capacity after $500 of existing debt, so the front-end ceiling controls the result.
For a fixed-rate mortgage, the calculator uses standard amortization. With principal P, monthly rate r and n monthly payments, PMT = P × [r(1+r)^n / ((1+r)^n - 1)]. The engine keeps full numerical precision internally and rounds only for presentation. This means the displayed monthly payment may not reproduce the lifetime totals if a user multiplies the rounded display value manually. The validated baseline of $325,114.63 at 6.5% over 30 years produces a modeled principal-and-interest payment of about $2,054.95 per month. Explore detailed loan scenarios with our Mortgage Calculator.
Front-end DTI measures qualifying housing expense relative to gross monthly income. Back-end DTI adds other qualifying debt payments to the housing expense before dividing by gross monthly income. The calculator uses the selected DTI framework as a planning model, not as a universal underwriting rule. Actual underwriting can consider credit history, reserves, loan-to-value, occupancy, automated underwriting results and other factors. Current Fannie Mae guidance illustrates that applicable DTI limits can vary by underwriting path and borrower circumstances.
The calculator can model commonly used DTI frameworks, but the percentages must not be interpreted as universal approval limits. A 28/36 framework can be used as a conservative planning benchmark. FHA's 31/43 ratios apply to specified manual-underwriting scenarios, while automated FHA underwriting can produce different outcomes. VA uses 41% as a DTI review threshold rather than a standalone approval cutoff, with residual income and other underwriting considerations also relevant.
A purchase price that looks affordable from principal and interest alone can become less affordable once recurring ownership costs are included. The calculator can model property taxes, homeowners insurance, HOA fees and maintenance. In budget-based mode, these costs are included in the monthly affordability ceiling. The maintenance input is a planning assumption rather than an official lender requirement, and actual maintenance costs vary substantially by property age, condition, location, size and systems.
The budget-based mode starts with a target monthly housing budget and solves backward for the home price whose modeled principal and interest, property taxes, homeowners insurance, HOA fees and maintenance reserve fit inside that budget. For the validated example, a $3,500 monthly budget, 6.5% rate, 30-year term, 20% down, 1.2% property tax, 0.5% insurance, 0.5% HOA and 1% maintenance produce a $453,179.39 home price and a $3,500 total modeled monthly outflow. This mode can be useful when a household begins with a monthly comfort limit instead of a lender-style income ratio. Compare different loan amounts using our Mortgage Calculator.
A larger down payment reduces the amount financed for a given purchase price and can reduce the principal-and-interest payment. It can also change mortgage-insurance requirements and sometimes pricing, depending on the loan type and lender. A 20% down payment can avoid certain conventional PMI requirements, but mortgage-insurance rules differ across conventional, FHA and other programs. The calculator therefore treats down payment as a mathematical financing input rather than a guarantee of a particular insurance outcome. Plan your target down payment with our Down Payment Calculator or evaluate FHA mortgage options with our FHA Loan Calculator.
DTI is only one component of mortgage underwriting. Lenders may verify income, employment, credit history, assets and reserves, evaluate loan-to-value and occupancy, and apply program-specific underwriting rules. Automated underwriting systems may also reach different conclusions than a simple ratio test. For that reason, an affordability result can differ from a lender's actual preapproval amount and should not be presented as a final borrowing limit. Model your overall debt obligations with our DTI Calculator.
The down payment is not the only cash required to buy a home. Closing costs can include lender fees, appraisal, title and recording charges, prepaid taxes and insurance, points, and other transaction expenses. The CFPB notes that closing costs vary by transaction and that a rough early planning estimate can be useful, but the final amount depends on the loan, lender, property, location and services selected. The calculator should therefore be used alongside an actual Loan Estimate when one is available. See how principal paydown progresses over time with our Amortization Calculator.
A household may choose to spend less than the maximum supported by a lender or by this calculator. Savings goals, emergency reserves, childcare, transportation, repairs, utilities, travel and other personal priorities can make a lower housing budget more appropriate. The CFPB encourages consumers to compare the total cost of homeownership with the rest of their budget rather than focusing only on what a lender might approve. For existing homeowners evaluating refinancing options, try our Refinance Calculator.
Income mode calculates an allowable housing ceiling from the selected DTI framework and existing debt, then solves backward through fixed-rate mortgage amortization and annualized housing-cost assumptions. Budget mode solves backward from a fixed monthly housing budget. Property taxes, insurance, HOA and maintenance are modeled as annual percentages of the home price and converted to monthly amounts when those inputs are enabled. Results are estimates based on user-entered assumptions. They are not lender preapproval, underwriting, legal or tax advice, and they do not guarantee that a household will find, qualify for, or comfortably sustain the resulting mortgage.
Income mode uses the selected DTI ceilings to establish a maximum monthly housing amount, then solves backward through fixed-rate amortization and recurring housing-cost assumptions. Budget mode solves backward from a fixed monthly housing budget. The engine uses full numerical precision internally and rounds displayed currency values for presentation.
This calculator provides estimates from user-entered assumptions. It is not a lender preapproval system, underwriting engine, legal or tax service, or individualized financial advice. Actual mortgage eligibility, rates, DTI treatment, mortgage insurance, taxes, insurance, HOA fees, closing costs and maintenance expenses can differ.