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Home Affordability Calculator

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Find out exactly how much house you can afford based on your income and debts

Free alternative to SmartAsset / NerdWallet Premium (Lead-gen gated)

Income & Debts

Car payments, student loans, credit card minimums, etc.

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Conventional: 43% | FHA: 50% | VA: 41%

Loan & Property Details
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You can afford up to

$391,165

$78,233 down payment | $312,932 loan

Total Monthly Payment

$2,546

Principal & Interest

$2,030

Property Tax

$391

Home Insurance

$125

Debt-to-Income Ratios

Front-End DTI (housing only)35.9%

Guideline: 28% max

Back-End DTI (all debts)43.0%

Guideline: 36-43% max

Monthly Payment Breakdown
Home Affordability at Different Interest Rates

Home Affordability Calculator

I can afford up to $391,165

6.8% rate | 30-year | 20% down

freetoolkit.dev

Max Home Price

$391,165

Monthly Payment

$2,546

Down Payment

$78,233

Loan Amount

$312,932

Front-End DTI

35.9%

Back-End DTI

43.0%

Based on DTI-constrained affordability at freetoolkit.dev

What This Means

✓With 20%+ down, you avoid Private Mortgage Insurance (PMI), saving hundreds per month.
⚠Your front-end DTI (housing only) is 35.9%, which exceeds the conventional 28% guideline. Some lenders may be stricter with approval.
ℹ️Your back-end DTI (all debts) is 43.0%. Conventional loans typically require 43% or less. FHA loans may allow up to 50%.
→This home price is 4.6x your annual income. Financial experts often recommend staying below 3-4x income for comfortable payments.

How This Calculator Works

Back-End DTI Method

We calculate your maximum housing payment by taking your gross monthly income, multiplying by the DTI limit (default 43%), then subtracting your existing monthly debt payments. This gives the maximum total housing cost (PITI + PMI + HOA) you can afford.

Solving for Home Price

From the maximum housing payment, we subtract fixed costs (insurance, HOA) then solve for the home price where P&I + property tax + PMI equals the remaining budget. The formula accounts for property tax and PMI scaling with home price.

PMI (Private Mortgage Insurance)

If your down payment is below 20%, PMI is automatically added at 0.8% of the loan amount annually (typical mid-range). PMI is removed once you reach 20% equity through payments or appreciation.

What Lenders Check

Lenders look at front-end DTI (housing only, guideline: 28%) and back-end DTI (all debts, guideline: 36-43%). Conventional loans use 43%. FHA allows up to 50% with compensating factors like large reserves.

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Frequently Asked Questions

What DTI ratio do lenders use?

Most lenders use a back-end DTI limit of 43% (total debts including mortgage vs gross income). FHA allows up to 50% with compensating factors.

What is PMI and when is it required?

Private Mortgage Insurance is required when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount annually.

Does this include property taxes?

Yes. Enter your local property tax rate (or use the state average) and it's factored into your maximum monthly payment calculation.

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