House Affordability Calculator
Lenders cap total monthly obligations near 36% of gross income (up to 43–45% for strong files). This calculator works backward from your income to the maximum home price — reserving room inside the cap for property taxes and insurance.
Maximum affordable home price
$332,690
- Maximum loan amount
- $292,690
- Housing budget allowed
- $2,850/mo
How the House Affordability Calculator works
The calculation follows the standard method used across the US — no shortcuts, no hidden assumptions. Here is exactly what happens behind the scenes:
Formula
Max PITI = income×DTI − other debts → solve annuity for maximum loan
Frequently Asked Questions
Should I actually spend the maximum?
Lender math says yes; lifestyle math often says no. Budget for maintenance (~1%/year), childcare changes, and job flexibility before buying at the ceiling.
How does a bigger down payment help?
Beyond shrinking the loan, crossing 20% removes PMI entirely — effectively increasing what the same monthly budget can afford by several percent of home price.
Related Calculators
Mortgage Calculator
Free mortgage calculator estimates your monthly payment including principal, interest, property tax, homeowners insurance, PMI, and HOA fees.
Financial
Down Payment Calculator
Plan your down payment: time to goal at current savings rate, plus how 20% down eliminates PMI.
Financial
Debt-to-Income Ratio Calculator
Calculate front-end and back-end debt-to-income ratios and see how mortgage underwriters grade them.
Financial