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Home Affordability Calculator

Find out how much house you can afford based on your income, down payment, existing debts, and the 28/36 DTI rule. Free, no sign-up required.

Affordability Results

Max Monthly PITI�?/td>
Max Loan Amount�?/td>
Max Home Price�?/th>
Front-End DTI �?/span>
Back-End DTI �?/span>
DTI Status �?/span>

How the Home Affordability Calculator Works

This calculator uses the 28/36 rule �?the standard lender guideline �?to determine your maximum home price. It works backward from your income: your maximum PITI payment is 28% of gross monthly income, then it solves for the home price that produces that payment given your rate, term, taxes, and insurance.

DTI Formula Explained

Front-End DTI = Monthly PITI / Gross Monthly Income × 100
Back-End DTI = (Monthly PITI + All Other Debts) / Gross Monthly Income × 100

Most conventional lenders require front-end DTI �?28% and back-end DTI �?36%. FHA loans allow up to 31% / 43%. Some lenders go higher with strong compensating factors (large down payment, excellent credit).

Affordability by Income Level

Annual IncomeMax PITI/moEst. Max Price (6.5%, 20% down)
$60,000$1,400~$210,000
$80,000$1,867~$280,000
$100,000$2,333~$350,000
$150,000$3,500~$525,000
$200,000$4,667~$700,000

Estimates assume 28% front-end DTI, 6.5% APR, 30-year term, 1.2% property tax, $1,200/yr insurance.

How to Increase Your Home Buying Budget

  • Increase your down payment �?Reduces the loan amount and eliminates PMI at 20%+.
  • Pay down existing debts �?Lowers your back-end DTI, giving lenders more confidence.
  • Improve your credit score �?A 760+ score qualifies for the best rates, increasing buying power.
  • Choose a longer term �?30 years vs. 15 years lowers the monthly payment, allowing a higher price.
  • Add a co-borrower �?A second income increases the qualifying amount significantly.

Home Affordability �?Frequently Asked Questions

How much house can I afford on a $100,000 salary?

Using the 28% front-end DTI rule, your max monthly PITI is ~$2,333. At 6.5% APR with 20% down on a 30-year loan, this corresponds to a home price of roughly $350,000�?380,000. Your actual limit depends on other debts, credit score, and down payment.

What is the 28/36 rule?

Housing costs (PITI) should not exceed 28% of gross monthly income (front-end). Total debt payments should not exceed 36% (back-end). Most conventional lenders use these thresholds as qualification guidelines.

What is DTI ratio and why does it matter?

DTI (Debt-to-Income) = total monthly debt payments ÷ gross monthly income. Lenders use it to assess repayment ability. Conventional loans typically require back-end DTI �?43%. FHA may allow up to 50% with compensating factors.

How much down payment do I need?

Conventional: 3%�?0%. FHA: 3.5% (580+ credit). VA/USDA: 0% for eligible borrowers. Putting 20% down eliminates PMI, saving $100�?300/month on a typical loan.

What credit score do I need to buy a house?

Conventional: 620+. FHA: 580+ (3.5% down) or 500�?79 (10% down). VA: typically 620+. Scores of 740+ qualify for the best rates, potentially saving tens of thousands over the loan term.

Mortgage Calculator

Estimate monthly home loan payments with PITI.

Refinance Calculator

See if refinancing saves you money.

Debt Payoff Calculator

Pay down debts to improve your DTI ratio.

Educational purposes only. Not financial advice. Actual loan qualification depends on lender criteria, credit score, and other factors. Consult a licensed mortgage professional.