Lenders decide how much they'll lend you mainly by your debt-to-income ratio (DTI): the share of your gross monthly income that goes to housing and debt payments. This calculator works backwards from those limits to the highest home price that fits, including property tax and insurance.
How to use this calculator
- Enter your household income before tax and your current monthly debt payments.
- Add the down payment you've saved and an interest rate.
- Choose how conservative to be. The 28/36 rule is the classic guideline; many loans allow up to 43%.
- Open the result in the mortgage calculator to see the full monthly payment.
How it's calculated
The 28/36 rule says housing costs (mortgage, tax and insurance) shouldn't exceed 28% of gross monthly income, and all debts including housing shouldn't exceed 36%. The calculator takes whichever limit is lower, then finds the price where the mortgage payment plus tax and insurance equals that budget.
Example: on $90,000 a year ($7,500 a month), 28% is $2,100 for housing. With $400 of other debts, the 36% limit allows $2,300, so the housing budget is $2,100. At 6.5% with $40,000 down, and with tax and insurance at 1.6% of the price a year, that supports a home of roughly $307,000.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is generally considered healthy. Many conventional loans allow up to 43–45%, and some FHA loans go to 50% with strong credit, but a higher DTI leaves less room in your budget.
Does this include closing costs?
No. Closing costs are typically 2–5% of the price and are paid upfront, separately from the down payment. Keep cash aside for them.
Should I buy the most expensive house I can afford?
Not necessarily. Lender limits are a ceiling, not a target. Leave room for maintenance (often 1–2% of the home's value a year), savings and other goals.
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Estimates for general information only, not financial advice. See how we calculate.