How Much House Can I Afford?

Work backward from your income to a home price. This calculator applies standard debt-to-income guidelines and includes property taxes, insurance and PMI, so the price it finds fits a realistic full payment.

$
$
Car, student loan, credit card minimums, etc. Not rent.
$
%
%
Annual tax as a percent of the home price.
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%
%
Housing payment as a share of gross income. 28% is a common guideline.
%
All debts including housing. Many loans allow 43%–50%.
Home price you can afford$358,759Limited by the housing ratio
Loan amount
$318,759
Max monthly housing payment
$2,566.67
Principal & interest
$2,014.77
Taxes, insurance & PMI
$551.90
Down payment share
11.15%
Total debt-to-income
34.55%

This uses common lending ratios. A lender also weighs credit score, cash reserves and loan program, and what is comfortable for your budget may be lower than what a lender approves.

The 28/36 guideline

Lenders look at two debt-to-income (DTI) ratios, each measured against gross monthly income:

The calculator uses whichever limit is tighter, then finds the highest price whose full payment fits.

Example

With a $110,000 income, $600 in monthly debts and $40,000 down at 6.5%, the 28% housing limit allows a payment of $2,566.67. After taxes, insurance and PMI, that supports a home of about $359,000.

Frequently asked questions

Is the amount a lender approves what I should spend?

Not necessarily. Approval limits ignore childcare, savings goals, commuting and other costs. Many buyers aim below the maximum on purpose.

What counts as monthly debt?

Minimum payments on car loans, student loans, credit cards, personal loans and child support. Rent, utilities and groceries do not count, though they matter for your own budget.

How does a bigger down payment help?

It lowers the loan amount and the monthly payment, and at 20% down on a conventional loan it removes PMI, which can raise the price you can afford.

Sources

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PmtCalc provides estimates for education and planning only. Results are not an offer of credit, a loan approval, or financial, tax or legal advice. Actual terms depend on the lender and your situation. How we calculate and test these results.