Home Affordability Calculator — How Much House Can You Afford?
Find out how much house you can afford based on income, debts, down payment, and the mortgage rate you enter. Free, instant results with DTI ratio breakdown.
By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home
Max Home Price
$380,500.00
Max Mortgage
$320,500.00
Monthly Payment
$2,499.57
Affordability Breakdown
| Monthly Gross Income | $8,333.33 |
| Max Housing Payment (36% DTI) | $2,500.00 |
| Existing Monthly Debts | - $500.00 |
| Max Home Price | $380,500.00 |
| Down Payment | - $60,000.00 |
| Mortgage Amount | $320,500.00 |
| Principal & Interest | $2,025.78 |
| Property Tax | $348.79 |
| Insurance | $125.00 |
| Total Monthly Housing | $2,499.57 |
| Actual DTI | 35.99% |
How Interest Rates Affect Your Budget
5.5%
$411,800.00
+$31,300.00
6.0%
$395,600.00
+$15,100.00
6.5%
$380,500.00
7.0%
$366,400.00
-$14,100.00
7.5%
$353,300.00
-$27,200.00
Use the Home Affordability Calculator — How Much House Can You Afford? above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Knowing your price ceiling before you start touring homes changes how you negotiate and what disappointments you avoid. This tool weighs more than your paycheck: it folds in your existing debts, the cash you have for a down payment, and the mortgage rate you expect to pay to land on a realistic estimate of what you can carry.
At the heart of the math is the debt-to-income (DTI) ratio, the same yardstick lenders reach for when sizing up a borrower. The calculator uses the back-end ratio, which counts the new housing payment together with your other debts. It takes 36% of your gross monthly income by default (you can set another target, such as 43%), subtracts your existing monthly debt payments, and treats what is left as the budget for principal, interest, property tax, insurance and HOA dues on a 30-year fixed loan. It then finds the highest price whose payment fits that budget after your down payment, at the interest rate you enter (6.5% by default; Freddie Mac's weekly survey put the average 30-year fixed rate at 6.95% on September 17, 2026).
Treat the result as a starting point rather than a promise from a lender. The recurring costs that sink budgets sit outside the loan payment: property taxes, homeowner's insurance and any HOA dues. The calculator counts them, but its defaults, a 1.1% tax rate and $1,500 a year of insurance, are placeholders, so replace them with your county's rate and a real quote. Build a cushion for those line items and for the chance that rates move before you close.
Example: $100,000 Income, $500 of Debts, $60,000 Down
- 1 Input: a household earning $100,000 a year with $500 a month of car and student-loan payments and $60,000 saved for the down payment. Keep the defaults: 6.5% interest on a 30-year loan, a 1.1% property tax rate, $1,500 a year of insurance, no HOA and a 36% target DTI.
- 2 Budget: gross monthly income is $100,000 / 12 = $8,333.33, and 36% of that is $3,000. Subtracting the $500 of debts leaves $2,500 for housing, and after $125 a month of insurance, $2,375 for principal, interest and property tax.
- 3 Price: the calculator searches for the highest price whose payment fits $2,375 and rounds it down to the nearest $100: $380,500. With $60,000 down the mortgage is $320,500, which costs $2,025.78 a month at 6.5% over 30 years, plus $348.79 of property tax ($380,500 x 1.1% / 12).
- 4 Result: total housing is $2,025.78 + $348.79 + $125.00 = $2,499.57 a month, 30.0% of gross income on its own and 35.99% with the other debts. Setting the target DTI to 43% raises the maximum price to $461,100, with a $3,082.90 monthly payment.
Source: CFPB — Owning a Home · Last updated: September 2026
Frequently Asked Questions
How much house can I afford on my salary?
What is the 28/36 rule for home buying?
How much do I need for a down payment?
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