Home Affordability Calculator: How Much House Can You Afford?

Use our Home Affordability Calculator to determine your maximum home purchase price based on your annual gross salary, monthly debt obligations, down payment savings, and prevailing mortgage interest rates.

How Do Lenders Calculate How Much House You Can Afford?

A home affordability calculator determines your maximum purchase budget by applying the standard 28/36 Debt-to-Income (DTI) rule. Lenders limit your monthly housing expense (PITI) to 28% of your gross monthly income and your total recurring monthly debt obligations (including student loans, auto financing, and credit cards) to 36% to 43%.

Instant Salary-to-Home Affordability Estimator

Annual Gross Income ($)

Monthly Debt Obligations ($)

Available Down Payment ($)

Mortgage Interest Rate (%)

Estimated Maximum Home Budget

Based on a $110,000 salary, your estimated maximum affordable home price is $465,000 (Max monthly PITI: $2,566/mo).

The 28/36 Debt-to-Income (DTI) Rule Explained

Lenders evaluate two distinct ratios when approving a borrower for a home loan:

Front-End DTI (28% Limit): Spending no more than 28% of your gross monthly income on your total housing payment (Principal, Interest, Property Taxes, and Homeowners Insurance).
Back-End DTI (36% to 43% Limit): Spending no more than 36% to 43% of gross income on housing PLUS all other recurring debt (student loans, car notes, minimum credit card payments).