House Price Calculator — How Much Can I Afford?
Calculate the maximum house price you can afford based on your income, debts, down payment, and interest rate. Uses DTI ratios and includes property tax and insurance.
About the House Price Calculator — How Much Can I Afford?
How much house can you actually afford? Our house price calculator uses your gross income, existing debts, down payment, and current mortgage rates to calculate the maximum home price you can comfortably finance — along with a conservative estimate that gives you financial breathing room.
The calculation uses front-end DTI (housing costs as % of income) following standard mortgage underwriting guidelines. It factors in principal & interest, property tax, and homeowner's insurance to give you a realistic total housing cost — not just the loan payment.
The 28/36 rule: the classic home affordability guideline
Traditional mortgage underwriting uses the 28/36 rule: housing costs (PITI — principal, interest, taxes, insurance) should not exceed 28% of gross monthly income, and total debt obligations should not exceed 36%. FHA loans allow up to 43% total DTI; conventional loans allow up to 45–50% with strong credit. Our calculator lets you choose your DTI target — conservative buyers should use 28–36%, stretching buyers 43%.
Down payment impact on purchase price
A larger down payment directly increases your maximum purchase price because it reduces the loan amount needed to hit the same monthly payment. A 20% down payment also eliminates PMI (Private Mortgage Insurance), which can add $50–$200/month to your payment. For first-time buyers, FHA loans require only 3.5% down. Conventional loans allow 3% down with PMI. VA and USDA loans offer 0% down for eligible borrowers.
Hidden costs of homeownership beyond the mortgage
The full cost of owning includes property taxes (0.5–2.5% of value annually), homeowner's insurance (~0.5% annually), HOA fees if applicable ($50–$500/month), and maintenance (budget 1–2% of home value per year). A $400,000 home typically costs $8,000–$16,000/year in maintenance and repairs beyond the mortgage payment. First-time buyers frequently underestimate these ongoing costs.