See the maximum home price you can responsibly afford based on income, debts, down payment, and current rates.
Uses the standard 36% debt-to-income guideline lenders apply for conventional loans.
Affordability is about more than what a bank is willing to lend. This calculator uses the same 36% debt-to-income guideline most conservative lenders apply, then layers in property taxes, insurance, and HOA — so the price you see is one you can actually live with, not just qualify for.
Max monthly payment = (Monthly income × DTI limit) − Existing monthly debts. The calculator then solves for the home price where principal, interest, property tax, insurance, and HOA combined equal that maximum monthly payment.
A household earning $120,000 per year with $500 in monthly debts, a $60,000 down payment, a 6.5% rate, and a 30-year term can comfortably afford roughly $385,000–$420,000 in home price under a 36% DTI rule. Pushing toward 43% DTI raises the ceiling but cuts deeply into discretionary income.
Estimate your monthly mortgage payment including principal, interest, property taxes, insurance, HOA, and PMI.
Calculate the down payment, loan amount, and loan-to-value ratio for any home price — and see how far you are from the 20% threshold that avoids PMI.
Calculate the front-end and back-end debt-to-income ratios lenders use to evaluate mortgages and personal loans.
Estimate the monthly cost of private mortgage insurance for a low-down-payment conventional loan, and when it auto-cancels.
It's a guideline, not a law. Many lenders approve up to 43–45% DTI for qualified borrowers, but the higher you go, the less cushion you have.
Lenders use gross (pre-tax) income, so this calculator does too. Just remember: your actual paycheck is smaller, so leave room for taxes.
A larger down payment reduces the loan amount, eliminates PMI above 20%, and often unlocks a better interest rate.
This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.
Last updated June 2026 · Prepared by the mCalculator Editorial Team