Home Affordability Calculator
Find the highest home price your income and debts allow, or the cash you need.
The 28% housing limit sets your ceiling. With your other debts, all payments come to 32.9% of gross income, inside the 36% total limit. Your 13.9% down is under 20%, so $129.07 a month of PMI is included.
Limits and housing costs
Monthly payment by home price
Drag the handle to test a priceThe payment line crosses your $2,567 limit at $359,763, the most you can afford. At the tested price, $400,000, the payment is $2,891 a month, over the limit. The step in the line, at $250,000, is where your $50,000 falls under 20% of the price and PMI starts.
Where the payment goes
- Principal and interest
- $1,957.91
- Property tax
- $329.78
- Home insurance
- $149.90
- PMI
- $129.07
- HOA dues
- $0.00
- Monthly payment
- $2,566.67
How the price is found
- 1Gross monthly income$110,000 ÷ 12 = $9,166.67
- 2Largest payment: the smaller of the housing limit and the total limit minus debtsmin(0.28 × $9,166.67, 0.36 × $9,166.67 − $450) = $2,566.67
- 3Search for the price whose full payment equals that limit$359,763
- 4Loan: the price minus your cash$359,763 − $50,000 = $309,763
- 5Check: the payment parts add up to the limit$1,957.91 + $329.78 + $149.90 + $129.07 = $2,566.67
Compare a change
5.5% rate raises the price you can afford by $26,806.
Your ratios against published limits
| Guideline | Yours | Housing | All debts |
|---|---|---|---|
| 28/36 rule | Fits | 28% | 36% |
| Fannie Mae, manual | Fits | None | 36% |
| Fannie Mae, automated | Fits | None | 50% |
| FHA, manual | Fits | 31% | 43% |
Yours: housing 28%, all debts 32.9%. Fannie Mae allows up to 45% on manual approvals with strong credit and reserves (Selling Guide B3-6-02); FHA uses 31% and 43% as manual benchmarks (HUD Handbook 4000.1).
Price you can afford at other rates
| Rate | Price | Change | Loan |
|---|---|---|---|
| 5.5% | $386,569 | +$26,806 | $336,569 |
| 6% | $372,768 | +$13,005 | $322,768 |
| 6.5% (yours) | $359,763 | 0 | $309,763 |
| 7% | $347,512 | −$12,251 | $297,512 |
| 7.5% | $335,971 | −$23,792 | $285,971 |
Same income, debts, cash and limits; only the rate changes.
Down payment options on $359,763
| Cash at closing | Loan | PMI a month | ||
|---|---|---|---|---|
| 3.5% | $23,385 | $2,819 | $347,172 | $144.65 |
| 5% | $28,781 | $2,782 | $341,775 | $142.41 |
| 10% | $46,769 | $2,661 | $323,787 | $134.91 |
| 15% | $64,757 | $2,540 | $305,799 | $127.42 |
| 20% | $82,746 | $2,299 | $287,811 | None |
| 25% | $100,734 | $2,185 | $269,822 | None |
Cash at closing includes 3% closing costs. PMI is charged while the down payment is under 20%.
Buying summary
- Gross yearly income
- $110,000
- Monthly debt payments
- $450
- Cash for the down payment
- $50,000
- Ratio limits
- 28/36 rule
- Rate and term
- 6.5%, 30 years
- Tax, insurance, HOA
- 1.1%, 0.5%, $0 a month
- Home price you can afford
- $359,763
- Loan amount
- $309,763
- Monthly payment
- $2,566.67
- Housing and total ratios
- 28% and 32.9%
Before you rely on this result. This is an estimate for planning. Banks, lenders and other providers apply their own rules, fees and rounding, so confirm figures with them before you commit to a financial decision. Sources used on this page.
How it's worked out
Lenders cap your housing payment with two ratios of your gross monthly income, which is pay before tax. The housing ratio counts the home payment alone. The total ratio adds your other debts: car loans, student loans and card minimums. Your largest payment is the smaller of the two caps.
- is gross monthly income: yearly income divided by 12.
- and are the housing and total limits, such as 0.28 and 0.36.
- is what you pay each month on other debts.
The tool then looks for the highest price whose full payment equals that cap. The full payment is the loan payment plus tax, insurance, PMI and HOA dues, each as a monthly amount:
Here is the price minus your cash, is the yearly rate divided by 12 and is the number of monthly payments. , , and are tax, insurance, PMI and HOA a month. PMI is added only while your cash is under 20% of the price, so a price just above that point jumps in cost. That is the step you see in the chart.
Worked examples
Dana and Luis set a budget
They earn $110,000 together, pay $450 a month on a student loan and have $50,000 saved. At 6.5% over 30 years, with 1.1% property tax and 0.5% insurance, the 28% housing limit allows $2,566.67 a month.
That payment buys a home of about $359,763. Their cash is 13.9% of that price, so $129.07 of PMI is part of the payment. Under FHA limits of 31% and 43%, the same numbers reach about $393,837. Open this example in the tool
Kim adds a car payment
Kim has the same income and cash but also pays $500 a month for a car, so debts total $950. Now the 36% total limit binds first. Housing can take only $2,350.00 a month, a 25.6% housing ratio.
The price Kim can afford falls to about $332,917, $26,846 less than without the car loan. Open this example in the tool
Jordan saves for a specific home
Jordan likes a $425,000 house and plans to put 10% down. With closing costs of 3%, the cash due at closing is $55,250: $42,500 down and $12,750 in fees.
Jordan has $15,000 saved and puts away $1,200 a month, so the rest takes 34 months. The payment would be $3,143.70, including $159.38 of PMI. Putting 20% down would mean $85,000 and no PMI. Open this example in the tool
Reading your result
The big number is a ceiling, not a target. It is the most a lender's ratios would allow with your inputs. The sentence under it tells you which ratio holds you back. If it is the total ratio, paying off a small debt can raise your price more than a raise would.
The 28/36 pair is a long-standing rule of thumb. Lender rules differ by loan type. Fannie Mae caps the total ratio at 36% on manual approvals, or 45% with strong credit and reserves, and accepts up to 50% through its automated system (Selling Guide B3-6-02). FHA uses 31% and 43% as benchmarks for manual approvals. The CFPB explains how the ratio is counted.
The rate moves the answer most. For Dana and Luis, a 5.5% rate instead of 6.5% raises the price to about $386,569, a gain of $26,806. Tax and insurance count too: they are paid on the whole price every month, so a county with high property tax lowers your ceiling.
PMI usually ends once you owe less than 80% of the home's original value, and it must end at 78% (CFPB on PMI). The tool charges it at your rate on the loan while your cash is under 20% of the price.
Common mistakes
- Using take-home pay. Lender ratios use gross income, before tax and payroll deductions. Enter the pre-tax figure for everyone on the loan.
- Counting living costs as debts. Only payments on your credit report count, plus alimony or child support. Rent you will stop paying, phone bills and utilities do not.
- Spending all the cash on the down payment. Closing costs often run 2% to 5% of the price. Use Cash to buy to see the full amount, and keep money back for repairs.
- Forgetting HOA dues. A condo with $350 of monthly dues gives up that much of your payment cap, which can cost tens of thousands of dollars of price.
- Treating FHA limits as free room. An FHA loan also charges its own mortgage insurance, upfront and yearly, which this tool does not add. Ask a lender for the FHA premium before you count on the higher price.
Questions people ask
Sources
- Consumer Financial Protection Bureau, What is a debt-to-income ratio?
- Fannie Mae Selling Guide, B3-6-02, Debt-to-Income Ratios
- Consumer Financial Protection Bureau, What is private mortgage insurance?
- Consumer Financial Protection Bureau, Owning a Home: closing costs
- U.S. Department of Housing and Urban Development, FHA Single Family Housing Policy Handbook 4000.1 (manual underwriting benchmarks: 31% housing, 43% total debt)
Maintained by Anil ShahUpdated October 28, 2026Checked against 9 reference values