How much house can I afford?

The highest price your income supports under the debt-to-income limits lenders use, with the full monthly payment behind it.

How lenders decide what you can afford

Lenders compare your monthly payments with your gross monthly income (before tax). Two ratios matter. The front-end ratio is the housing payment alone: principal, interest, property tax, insurance, PMI and HOA. The conventional guideline keeps it at or under 28%. The back-end ratio adds every other debt payment, like car loans, student loans and card minimums, and keeps the total at or under 36%.

This calculator takes whichever limit is tighter, then finds the highest price whose full monthly payment fits under it. With few other debts the 28% limit usually decides; with a car payment or student loans, the 36% limit often does.

Affordable isn't the same as comfortable

These limits describe what a lender will usually approve, not what fits your life. They ignore take-home pay, childcare, retirement saving and repairs, which typically run 1% to 2% of the home's value a year. Many buyers aim below the maximum and keep an emergency fund after closing.

How this calculator works

The monthly cost of a price is worked out exactly as in the mortgage calculator: the standard fixed-rate payment, tax and insurance divided by 12, and PMI below 20% down. Because the cost only ever rises with the price, the calculator searches for the highest whole-dollar price that fits, so the payment shown is never above your limit. Details are on the methodology page.

Questions