Skip to content
CalculatorGeek

House Affordability Calculator

Editorial review pending Updated Apr 2026 Used 0 times
Use lender-style income ratios or start from your own all-in monthly housing budget.
Income before taxes and deductions.
Recurring debt included in the back-end DTI test.
Editable planning ratio, not a universal approval rule.
Editable total-debt ratio used after other monthly debts.
Optional household ceiling. Enter 0 to use only the DTI ceiling.
Amount available for principal, interest, taxes, insurance, HOA, and mortgage insurance.
Choose how to express the down payment.
Cash allocated to the purchase price.
Percentage of the modeled purchase price.
Use the note rate, not APR, for principal-and-interest calculations.
Length of the fixed-rate amortization schedule.
Use a property-specific estimate where possible.
Editable annual estimate.
Percentage of the modeled home price.
Annual policy estimate.
Monthly dues and required assessments included in housing cost.
Annual percentage of the modeled loan balance; enter 0 when not applicable.
Required housing costs included in the modeled payment.
Planning percentage only; a lender Loan Estimate controls for a real transaction.
Estimated prepaid taxes, insurance, escrow funding, and deposits.
Estimated credits that reduce cash due at closing.

Guest calculations stay on this device. Signed-in results sync privately.

Your result

Estimated Home-Price Ceiling

Enter your values, then calculate to see a verified result.

FormulaVersioned calculationv3.0.0

What is estimated

A purchase-price ceiling, loan amount, monthly housing breakdown, cash-to-close estimate, and rate sensitivity.

Two affordability views

Compare lender-style DTI capacity with a household comfort budget and use the lower entered limit.

Important limitation

This model does not approve a loan or replace a lender Loan Estimate.

Transparent by design

CalculatorGeek quality standard

MethodStandard fixed-rate present value with explicit housing costs.
Constraint logicFront-end, back-end, and comfort limits are compared before solving.
Scenario checkRate sensitivity holds all other entered inputs constant.
Publication statusCalculatorGeek Algorithmic Team review passed on September 11, 2026.
Result actions Compare
1
Set the capCompare income ratios or enter a monthly budget.Lower applicable allowance
2
Subtract housing add-onsReserve taxes, insurance, HOA, and mortgage insurance.Allowance − non-loan costs
3
Solve the priceConvert the remaining payment into loan and price.Fixed-rate present value

Interpretation

is the ceiling produced by the entered assumptions, not a recommendation to spend that amount.

Check the separate cash-to-close estimate and preserve reserves.

Compare the rate scenarios before choosing a shopping range.

Use this result

Keep exploring

1 available tools
Amortization CalculatorInspect payment allocation, balance, and payoff over time.
Public verification recordFormula v3.0.0
Review scope
Financial-calculation-and-content-review
Review team
CalculatorGeek Algorithmic Team
Verified
2026-09-11
Next source review
2027-09-11
Automated fixtures
8 cases

Review method

Independent spreadsheet benchmarks, algebraic reconciliation, boundary cases, mobile/browser checks, internal-link audit, and primary-source review.

Known limitations

  • Educational planning estimate, not underwriting, preapproval, or a lending offer.
  • Taxes, insurance, HOA, mortgage insurance, closing costs, and credits can differ from entered estimates.
  • The fixed-rate model does not represent ARM resets, lender overlays, credit pricing, or product-specific rules.

Primary sources

Published calculation checks

CaseInputsExpected result
Published worked example$120,000 income; $600 debt; 28/36 DTI; $850 tax and insurance; $100 HOA; 6.5%; 30 years; $60,000 down$2,800 limiting cap; about $308,511 loan and $368,511 price
Zero rate$2,000 monthly P&I; 10 years; no housing add-ons$240,000 supported loan
Cost reconciliationPercentage-linked property tax and mortgage insuranceDisplayed all-in cost equals the selected housing allowance
On this page

Direct answer

Start with gross monthly income and recurring monthly debt. A lender-style scenario may cap housing with a front-end ratio and cap total debt with a back-end ratio. The calculator then subtracts property tax, homeowners insurance, HOA dues, mortgage insurance, and other included housing costs from the monthly housing allowance. The remaining principal-and-interest budget is converted into a loan amount with the fixed-payment formula, and the down payment is added to estimate a home price.

Run at least three scenarios: a conservative household budget, a middle planning case, and a higher lender-style ceiling. The best decision is rarely the largest displayed number.

Trust and methodology strip

LabelVisible copy
Method usedIncome and debt caps plus the fixed-rate amortizing-payment formula; taxes, insurance, HOA, and mortgage insurance are modeled separately.
Outputs supportedEstimated purchase price, loan amount, principal and interest, total monthly housing cost, DTI ratios, cash estimate, and sensitivity scenarios.
Review statusCalculatorGeek Algorithmic Team — set the visible review date only after completing and recording the QA checklist in this package.
Important noteThe result is an educational scenario. Lender definitions, qualifying income, debts, credit, reserves, property costs, and program rules can change the actual outcome.

How to use the calculator

  1. Enter stable gross annual household income. Do not include income a lender may not accept unless you are using the tool only for personal budgeting.
  2. Add required monthly debts: minimum credit-card payments, auto and student loans, support obligations, and other recurring debt that belongs in your chosen scenario.
  3. Enter the down payment as cash or a percentage, and keep closing cash separate.
  4. Use the annual note interest rate from a lender quote or a clearly labeled scenario. A sitewide average is not a personal quote.
  5. Enter the loan term and the actual property-tax, insurance, HOA, and mortgage-insurance estimates when known.
  6. Choose a DTI preset only as a scenario. CFPB notes that products and lenders use different DTI limits.
  7. Compare the modeled ceiling with a payment that leaves room for utilities, repairs, savings, childcare, transport, and other household priorities.

Formula and calculation sequence

Gross monthly income = annual gross income / 12.

Front-end housing cap = gross monthly income × selected front-end ratio.

Back-end housing cap = gross monthly income × selected back-end ratio − included monthly debts.

Modeled housing allowance = the lower applicable cap. In payment mode, it is the user's entered all-in monthly housing budget.

Principal-and-interest budget = housing allowance − monthly tax − monthly insurance − HOA − mortgage insurance − other included housing costs.

For a fixed-rate fully amortizing loan:

M = L × r(1 + r)^n / ((1 + r)^n − 1)

where M is periodic principal and interest, L is loan principal, r is the periodic note rate, and n is the number of payments. To solve for loan amount:

L = M × ((1 + r)^n − 1) / (r(1 + r)^n)

If the down payment, property tax, insurance, HOA, or mortgage insurance is a percentage of price or balance, the variables depend on the unknown home price. The implementation should solve iteratively until the all-in payment and price converge, not add percentage costs after solving.

Worked example with a limiting constraint

Assume $120,000 gross annual income, $600 of other monthly debt, a 28% front-end scenario, a 36% back-end scenario, $600 monthly property tax, $150 insurance, $100 HOA, no mortgage insurance, 6.50% annual note rate, 30 years, and a $60,000 down payment.

  • Gross monthly income: $10,000.
  • Front-end cap: $10,000 × 0.28 = $2,800.
  • Back-end cap after other debt: $10,000 × 0.36 − $600 = $3,000.
  • Limiting cap: $2,800 (front-end).
  • Principal-and-interest budget: $2,800 − $600 − $150 − $100 = $1,950.
  • Approximate supported loan at 6.50% for 360 payments: $308,511.
  • Approximate price after adding the fixed $60,000 down payment: $368,511.

This example assumes fixed dollar estimates. A price-linked tax rate or mortgage-insurance rate requires iteration and changes the result.

Qualification ceiling versus comfortable budget

DTI answers a narrow question about income and debt under defined rules. It does not know whether a household has expensive childcare, irregular self-employment income, major medical costs, aggressive savings goals, or an older property likely to need repairs. CFPB specifically distinguishes what a lender may offer from what fits comfortably within the rest of a household budget. Show both concepts and label them.

What belongs in the monthly payment

Principal and interest are only the loan portion. A realistic housing total can also include property taxes, homeowners insurance, mortgage insurance, HOA or co-op dues, and other required assessments. Utilities and maintenance are normally budget items outside the lender payment; show them separately rather than silently treating them as escrow.

Cash to close is a separate constraint

Affording a monthly payment does not prove that the buyer has enough closing cash. A planning estimate may include down payment, estimated closing costs, prepaid taxes or insurance, initial escrow funding, deposits already paid, credits, and adjustments. The lender's Loan Estimate is the better document for a specific transaction. Do not present down payment + generic percentage as an exact cash-to-close figure.

Sensitivity checks that make the result useful

Compare the result at the entered rate, plus and minus 0.5 percentage point; with the entered tax and insurance quotes; with a higher maintenance reserve; and with at least two down payments. A sensitivity table should identify what changed and hold every other input constant. Do not mix updated rates with old property-cost assumptions.

Common mistakes

  • Treating 28/36 as a universal approval rule. It is a planning convention, while lender and product limits vary.
  • Calling annual percentage rate (APR) the interest rate used in the payment formula. Use the note rate unless the tool explicitly models APR cash flows.
  • Ignoring taxes, insurance, HOA, mortgage insurance, or maintenance.
  • Counting the same debt in both the housing-cost field and other-debt field.
  • Adding down payment without reserving money for closing and emergencies.
  • Using a regional default as if it were a quote for a specific property.
  • Assuming a preapproval amount is a recommended spending target.

Frequently asked questions

How much house can I afford?

There is no responsible salary-only answer. Enter income, debts, cash, note rate, term, and property-specific costs, then compare the lender-style scenario with a payment that fits the rest of your budget.

What DTI should I use?

Use the ratio requested by a particular lender or program when testing qualification. For early planning, compare several clearly labeled scenarios. CFPB says DTI limits differ across loan products and lenders.

Does a larger down payment always make the purchase safer?

It reduces the loan amount, but using nearly all liquid savings can leave too little for closing, repairs, or emergencies. Evaluate payment and remaining cash together.

Are taxes and insurance exact?

No, unless you enter current property- and policy-specific figures. Defaults are estimates and can change.

Is this the same as preapproval?

No. Preapproval is a lender process using documentation, credit, program rules, and underwriting. This calculator is an educational scenario.

Why does another calculator show a different price?

It may use a different DTI, rate, tax, insurance, HOA, mortgage-insurance, maintenance, down-payment, or rounding assumption. Compare the assumptions—not only the headline price.

Sources and review

Source research checked September 11, 2026. CalculatorGeek Algorithmic Team completed the calculation, source, route, and browser review on September 11, 2026. CalculatorGeek is not a lender, broker, financial planner, tax adviser, or legal adviser.