Home Affordability Calculator
Find the most expensive home you can afford from your income, debts and down payment using the 28/36 rule, with taxes, insurance, HOA and PMI all counted.
Rate defaults to the U.S. average 30-year fixed of 6.76% (Freddie Mac PMMS, week of 2026-09-10).
Home Affordability Calculator: with the default inputs, maximum home price is $317,495.
Before taxes, all borrowers combined.
Car loans, student loans, credit-card minimums, child support — not rent or utilities.
US average is about 1.1% of value per year; check your county.
- Maximum monthly housing payment
- $2,333Principal, interest, taxes, insurance, HOA and PMI.
- Loan amount
- $277,495
- Principal & interest
- $1,802
- Taxes, insurance, HOA & PMI
- $532
- Limiting ratio
- Front-end (28% of income)
- Loan-to-value
- 87.4%
Assumptions
- Property tax is charged on the full purchase price; PMI on the loan only while the down payment is under 20%.
- Both DTI ratios use gross (pre-tax) income and the debt payments you enter; the lower cap binds.
- Fixed-rate, fully amortizing loan; no points, closing costs or reserves are considered.
- Principal & interest$1,80277%
- Property tax$29112%
- Insurance$1255%
- PMI$1165%
| Rate | Max price | Loan | P&I / mo | PMI / mo |
|---|---|---|---|---|
| 5.76% | $342,654 | $302,654 | $1,768 | $126 |
| 6.26% | $329,671 | $289,671 | $1,785 | $121 |
| 6.76% | $317,495 | $277,495 | $1,802 | $116 |
| 7.26% | $306,074 | $266,074 | $1,817 | $111 |
| 7.76% | $295,359 | $255,359 | $1,831 | $106 |
Same income, debts and down payment; only the rate moves.
How this is worked out
The formula
Housing budget = min( income/12 × front-end %, income/12 × back-end % − other debts ) P&I available = budget − property tax − insurance − HOA − PMI Max loan = P&I available ÷ payment factor, where factor = r(1 + r)^n ÷ ((1 + r)^n − 1) Max price = max loan + down payment (Property tax and PMI depend on the price, so the loan is solved algebraically, not by guessing.)
Open How it’s calculated above to see this worked through with your own numbers.
What you enter
- Gross annual income
- Before taxes, all borrowers combined.in dollars · 0 or more · defaults to 100000
- Monthly debt payments
- Car loans, student loans, credit-card minimums, child support — not rent or utilities.in dollars · 0 or more · defaults to 500
- Down payment
- A number.in dollars · 0 or more · defaults to 40000
- Interest rate
- A number.a percentage · from 0 to 30 · defaults to 6.5
- Loan term
- A number.from 1 to 40 · whole numbers only · defaults to 30
- Property tax
- US average is about 1.1% of value per year; check your county.a percentage · from 0 to 10 · defaults to 1.1
- Homeowners insurance
- A number.in dollars · 0 or more · defaults to 1500
- HOA dues
- A number.in dollars · 0 or more · defaults to 0
- PMI rate(under More options)
- Charged only if the down payment is under 20% of the price.a percentage · from 0 to 3 · defaults to 0.5
- Front-end DTI limit(under More options)
- Housing payment as a share of gross income. 28% is the classic conventional limit.a percentage · from 1 to 60 · defaults to 28
- Back-end DTI limit(under More options)
- Housing plus all other debt. 36% is conservative; many lenders allow 43–45%.a percentage · from 1 to 60 · defaults to 36
What you get back
- Maximum home pricemain answer
- Maximum monthly housing payment
- Principal, interest, taxes, insurance, HOA and PMI.
- Loan amount
- Principal & interest
- Taxes, insurance, HOA & PMI
- Limiting ratio
- Loan-to-value
What this assumes
- Property tax is charged on the full purchase price; PMI on the loan only while the down payment is under 20%.
- Both DTI ratios use gross (pre-tax) income and the debt payments you enter; the lower cap binds.
- Fixed-rate, fully amortizing loan; no points, closing costs or reserves are considered.
About this calculator
Lenders don't ask what you'd like to spend; they ask what share of your income is already spoken for. Two ratios do the work. The front-end ratio caps your total housing payment — principal, interest, taxes, insurance, HOA and PMI — at a percentage of gross monthly income (28% is the classic conventional guideline). The back-end ratio caps housing plus every other debt payment at a higher percentage (36% conservative, up to 43–50% on some programs). Whichever cap is lower sets your budget, and the budget sets the price.
How to use it
Enter combined gross income, your monthly debt payments (loans, cards, support — not utilities or rent), your down payment, the rate and term. Under Housing costs, adjust property tax to your county's rate and add insurance and HOA. The rate defaults to this week's national average 30-year fixed. More options exposes the DTI limits and the PMI rate; loosen the back-end limit to 43% to see what an FHA-style approval looks like.
Reading the results
- Maximum home price is the ceiling a lender would likely approve, not a recommendation.
- Maximum monthly housing payment is the binding budget; the donut shows how much of it goes to things other than the loan.
- Limiting ratio tells you which rule bit. If it's the back-end ratio, paying off a car loan raises your ceiling far more than saving another few thousand for the down payment.
- Loan-to-value above 80% means PMI, which this calculator already deducts from the budget.
The math, honestly
Most affordability tools guess a price, compute the payment, and iterate. The trouble is that property tax scales with price and PMI scales with the loan, so the answer depends on itself. This calculator solves the equation directly: the budget minus fixed costs, divided by the combined per-dollar cost of the payment, tax and PMI. The rate table below the results shows why timing matters — each half-point on the rate moves the ceiling by roughly 4–5%.
What lenders also look at
Credit score (which sets the rate), cash reserves after closing, employment history, and the property itself (condos and multi-units have extra rules). Being approved for a price isn't the same as being comfortable at it: run the mortgage calculator at 80% of this number and see how the payment feels next to childcare, retirement savings and the cost of maintaining a house — typically 1–2% of its value per year.
Frequently asked questions
▸What is the 28/36 rule?
A lending guideline: spend no more than 28% of gross monthly income on housing (PITI plus HOA) and no more than 36% on housing plus all other debt payments. It's conservative — many conventional approvals go to 43–45% back-end, and FHA uses 31/43.
▸How much house can I afford on $100,000 a year?
With $500 in monthly debts, $40,000 down and a 6.5% 30-year rate, roughly $325,000 once taxes, insurance and PMI are counted. Less debt, a bigger down payment or a lower rate all raise that quickly.
▸Do lenders count my rent or utilities as debt?
No. Debt-to-income counts recurring credit obligations: car and student loans, minimum card payments, personal loans, alimony and child support. Rent is replaced by the new housing payment; utilities and insurance premiums are excluded.
▸Why does the property tax rate matter so much?
Because it's a percentage of the price that lands in your monthly payment forever. Going from 1% to 2% on a $400,000 home adds about $333 a month — roughly the same as a full point of interest rate.
▸Is the maximum price what I should spend?
Rarely. It's the lender's ceiling based on gross income; it ignores retirement contributions, childcare, maintenance (budget 1–2% of value a year) and how secure your income is. Many people are more comfortable 15–25% below it.
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