Home Affordability Calculator

How much house can you actually afford?

Banks will lend you more than you should borrow. This calculator shows your safe, moderate, and stretch budgets — based on real DTI rules lenders use.

Your Financial Snapshot
All calculations are private — nothing leaves your browser
Income
Annual Gross Income
$/yr
$10K$1M
Co-borrower Income (if any)
$/yr
$0$500K
Monthly Debts
Car Payment
$/mo
$0$5K/mo
Student Loans
$/mo
$0$5K/mo
Credit Cards
$/mo
$0$3K/mo
Other Debts
$/mo
$0$5K/mo
Loan Parameters
Down Payment
$
$1K$1M
Interest Rate
%
0.5%20%
Loan Term
yrs
5 yrs30 yrs
Property Tax Rate
%/yr
0%5%
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Your personalized budget is a click away

Enter your income, debts, and loan preferences. We'll show you three budget tiers — conservative, moderate, and stretch — so you know exactly what's safe vs what's risky.

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The 28/36 Rule Explained

Lenders use the 28/36 rule: housing costs should be no more than 28% of gross income, and total debts no more than 36%. We show you all three budget tiers based on this.

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Banks Will Over-Lend You

Lenders will often approve you for far more than is comfortable. Their job is to lend — your job is to borrow wisely. This calculator shows your safe limit, not just the maximum.

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DTI: The Number That Matters

Debt-to-Income ratio (DTI) is the single most important number in mortgage qualification. Most conventional loans require a DTI below 43%. We calculate yours automatically.

How Much House Can I Afford? The Complete Guide

The most common mistake first-time homebuyers make is asking their bank how much they can borrow — and taking that number as their budget. Banks will often approve you for 45–50% of your gross income in debt payments. That sounds like a lot because it is. Living at maximum DTI is stressful and leaves you vulnerable to any income disruption.

What Is DTI and Why Does It Matter?

DTI stands for Debt-to-Income ratio. It's calculated by dividing your total monthly debt payments (including the new mortgage) by your gross monthly income. Most conventional loans require a DTI below 43%, but the sweet spot for financial comfort is under 36%.

The Three Budget Tiers

Conservative (28% housing DTI): Your housing costs are under 28% of gross income. You have plenty of buffer for emergencies, repairs, and life events. This is the financially prudent choice.
Moderate (36% total DTI): The classic 28/36 rule. Comfortable for most families with stable income.
Stretch (43% total DTI): The maximum most lenders will approve. Possible but tight — any income reduction becomes a serious problem.

Does the calculator include PMI?
PMI is not explicitly included, but if your down payment is under 20% of the home price, you should factor in 0.5–1.5% of the loan amount annually. This effectively reduces your true affordability by $50–150/month on a $300K loan.
What credit score do I need?
Conventional loans typically require a 620+ credit score. FHA loans go down to 580. A higher score (740+) gets you the best interest rates, which can save tens of thousands over the life of the loan.
Should I buy at my maximum budget?
Almost never. Budget for a home at 80–90% of your maximum. The remaining buffer covers maintenance (budget 1% of home value annually), unexpected repairs, and lifestyle changes. Buying at maximum leaves no margin for error.