Home Affordability Calculator
Find the home price your income supports, using the front-end and back-end debt-to-income limits that lenders apply.
How it's calculated
Lenders decide how much house you can afford using two debt-to-income ratios. The front-end ratio caps your monthly housing payment at a share of your gross income, commonly 28 percent. The back-end ratio caps your housing payment plus all other monthly debt, commonly 36 percent. Whichever gives the smaller housing budget is the one that limits you.
Take the default here. A $120,000 income is $10,000 a month. The 28 percent front-end limit allows $2,800 for housing. The 36 percent back-end limit allows $3,600 for housing and debt, and after $500 of other debt that leaves $3,100, so the front-end ratio is the tighter of the two at $2,800. After property tax and insurance, the rest supports the mortgage. With a $60,000 down payment at a 6.5 percent rate over 30 years, that works out to a home price of about $415,369, with a $2,246 principal-and-interest payment inside the $2,800 total.
The rate matters a lot. A higher mortgage rate sends more of your fixed housing budget to interest, so the price you can afford drops. Paying down other monthly debts frees up your back-end room, and a larger down payment raises the price directly. These are lender limits, not a target. Borrowing the maximum is rarely the comfortable choice.
Assumptions
- Uses a 28 percent front-end and 36 percent back-end DTI limit by default, which you can change. The smaller resulting housing budget sets the price.
- Property tax and insurance are estimated as a share of the home value. Actual lender rules, PMI, and loan program limits vary.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
What DTI ratio do lenders use?
A common guideline is 28 percent for housing alone and 36 percent for total debt, often written as 28/36. Some loan programs allow a higher back-end ratio, up to 43 percent or more, but a lower ratio leaves you more breathing room.
What counts as debt in the back-end ratio?
Recurring monthly obligations like car payments, student loans, and minimum credit card payments. Utilities, groceries, and insurance that is not part of the mortgage are not counted.
Should I borrow the maximum I qualify for?
Usually not. The DTI limits are what a lender will allow, not what is comfortable. Leaving room for savings, maintenance, and the unexpected is safer than stretching to the top of the range.
How does my down payment change what I can afford?
A larger down payment adds directly to the price you can afford, since it sits on top of the loan your income supports. It can also lower your rate and remove private mortgage insurance once you pass 20 percent down.
How can I afford more house?
Raise your income, pay off other monthly debts to open up your back-end room, put more down, or find a lower rate. The Mortgage calculator shows the payment on a specific loan, and Rent vs Buy checks whether buying is the right call at all.