How Much House Can I Afford?

Estimate the most house you can buy using the debt-to-income limits lenders use, with every monthly cost included.

$
Gross, before taxes.
$
Car, student, card minimums.
$
Costs of Owning
$
$
Applies with less than 20% down.
Lender Limits
Fractions and decimals both work.
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Home Price
Monthly payment
Loan amount
Principal and interest
Taxes and insurance
PMI
Limited by
Down payment
Cash to Close (Est.)

Scenarios

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ScenarioIncomeRateDownMax PricePaymentRemove

How Much House Can I Afford?

Lenders cap the monthly housing payment two ways: as a share of gross income (the housing or front-end ratio) and, with your other debts added in, the total or back-end ratio. The lower of the two sets your maximum payment. The page then finds the highest price whose full payment (principal, interest, taxes, insurance, PMI and HOA) fits.

Max payment = lower of (housing % × monthly income) and (total % × monthly income − other debts)
Payment at price P = P&I on (P − down) + P × tax rate ÷ 12 + insurance ÷ 12 + HOA + PMI

Worked Example

Tips

28% and 36% are the traditional conventional guidelines; many loan programs allow more (FHA uses 31% and 43% as standard limits). What a lender approves isn't the same as what's comfortable: leave room for maintenance (often budgeted at 1% to 2% of the home's value a year), savings and closing costs.