How much house your income, debts and down payment can support.
Affordable home price
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Max monthly housing payment
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Principal & interest
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Loan amount
A rule-of-thumb estimate using standard front-end/back-end debt-to-income limits and an assumed 1.5% a year combined property tax and insurance. Lenders also weigh credit score and loan type — get pre-approved for the real number.
How this works
Max housing payment = min(gross income × front-end % , gross income × back-end % − other debts) ÷ 12
Affordable price solves: (price − down payment) × mortgage factor + price × 0.125% = max housing payment
Front-end ratio caps housing costs alone (typically 28%); back-end caps housing plus every other debt payment combined (typically 36%), so a car loan or student loan directly lowers what you can afford.
These limits are guidelines, not law — some loan programs allow higher back-end ratios, especially with strong credit or a larger down payment.
The estimate assumes property tax and insurance together cost about 1.5% of the home price a year; real rates vary a lot by location.
Currency
Amounts follow the currency selected above.
What is the difference between front-end and back-end DTI?
Front-end DTI is housing costs alone (mortgage, tax, insurance) as a share of gross income. Back-end DTI is every monthly debt payment combined — housing plus car loans, student loans and credit cards — as a share of gross income.
Why does my existing debt reduce how much house I can afford?
Because the back-end ratio caps total debt, not just housing. A $400 monthly car payment eats into the same budget a lender would otherwise let you put toward a mortgage payment.
Does a bigger down payment let me afford a more expensive home?
Yes — it directly reduces the loan amount and monthly principal and interest for any given home price, which leaves more of your capped monthly payment available to support a higher price.
Does my credit score affect how much house I can afford?
Indirectly, yes — it does not appear in this calculator's formula, but a lower score usually means a higher mortgage rate, which shrinks the loan amount your monthly budget can support. Improving your score before applying can meaningfully raise what you qualify for.