How Much House Can I Afford?
Calculate by Income & Debt (DTI)This method estimates affordability from a lender's perspective using your Debt-to-Income (DTI) ratio.
Best for understanding what a bank might lend you.
You could afford a house up to
$430,290
with an estimated monthly payment of $2,800.00
- Insurance
- P & I
- Property Tax
Calculate by Monthly BudgetThis method calculates an affordable house price based on your desired monthly housing payment from your personal budget.
Best for figuring out what fits your lifestyle.
Your budget could afford a house up to
$437,974
with your desired monthly payment of $3,000.00
- HOA
- Insurance
- P & I
- Property Tax
How to Use the House Affordability Calculator
- Choose Your Method: Decide if you want to calculate based on a lender's perspective ("By DTI") or your personal monthly budget ("By Budget").
- Enter Your Details: Fill in the fields for your chosen method. The DTI method requires your income and debts, while the budget method starts with your desired monthly payment.
- View Your Result: The calculator will instantly show you the estimated home price you can afford. The results panel also provides a pie chart visualizing the breakdown of your estimated monthly payment.
Frequently Asked Questions
What is a good Debt-to-Income (DTI) ratio?
Most lenders prefer a back-end DTI ratio of 36% or less, but some loan programs (like FHA) may allow up to 43% or even higher in certain situations. A lower DTI ratio generally improves your chances of loan approval.
How much down payment do I really need?
While 20% is the traditional recommendation to avoid Private Mortgage Insurance (PMI), many conventional loans allow for as little as 3-5% down. Government-backed loans like FHA or VA can have even lower requirements.
Does this calculator include closing costs?
No, this calculator focuses on the recurring monthly costs (PITI) and the purchase price. Closing costs, which typically range from 2% to 5% of the home price, are a separate, one-time expense you'll need to budget for.