Estimate the maximum home price you can afford based on your annual income, monthly debts, down payment, interest rate, and desired debt-to-income ratio. See a breakdown at different DTI levels to understand your options.
"How much house can I afford?" is the first question of any home purchase, and lenders answer it with a single number: the maximum monthly housing payment that fits inside your debt-to-income (DTI) ratio. This calculator reverses the mortgage-payment math — instead of asking what a given home price costs per month, it asks what home price corresponds to a target monthly DTI.
The standard limits used by U.S. lenders are the 28/36 rule: housing costs (PITI) should stay under 28% of gross monthly income, and total debt payments (PITI plus all other debt) should stay under 36%. Some loan programs allow higher — FHA loans can go to 43% or higher, qualifying mortgages can stretch to 45–50% with strong compensating factors — but those are limits, not targets. Most financial planners suggest staying meaningfully below the cap.
Use this calculator to find a ceiling, not a target. Buying right at your maximum approval leaves no buffer for repairs, job loss, or rising taxes/insurance.
Income $85K, $500/mo debts, $40K down, 6.5% rate, 30-year, 1.1% property tax, $1,500 insurance: At 28% housing-only DTI: max price ≈ $230,000 At 36% total DTI: max price ≈ $295,000 At 43% total DTI (FHA): max price ≈ $360,000 A 15-percentage-point increase in DTI allowance buys 56% more house — and 56% more stress when something breaks.
Same household, but they pay off the $500/mo car loan before applying. At 36% DTI: max price jumps from $295K to ≈ $360,000. Paying off a single car loan can add roughly $65,000 to qualifying home price. The lender doesn't care that the car is paid off in your mind — only what shows on your credit report at application.
Use this calculator at the start of a home search to set realistic expectations, and again after any major change to income, debts, or down payment. It is most useful for figuring out which homes are worth visiting; once you have a specific home in mind, switch to the mortgage payment calculator for exact PITI on that price.
This is a planning estimate, not a pre-approval. Actual lender DTI calculations may treat certain debts differently (e.g., student loans on income-based repayment plans), and a real pre-approval considers your full credit report, assets, and employment history. For an authoritative number, ask a lender for pre-approval — it's free and usually completed within a few days.
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Max Home Price
$300,915
Max Loan Amount
$260,915
Monthly PITI
$2,050
DTI Ratio
36.0%
| DTI % | Max Monthly | Max Loan | Max Home Price |
|---|---|---|---|
| 28.00% | $1,483.33 | $182,617.56 | $222,617.56 |
| 30.00% | $1,625.00 | $202,191.96 | $242,191.96 |
| 32.00% | $1,766.67 | $221,766.35 | $261,766.35 |
| 34.00% | $1,908.33 | $241,340.74 | $281,340.74 |
| 36.00% | $2,050.00 | $260,915.13 | $300,915.13 |
| 38.00% | $2,191.67 | $280,489.53 | $320,489.53 |
| 40.00% | $2,333.33 | $300,063.92 | $340,063.92 |
| 42.00% | $2,475.00 | $319,638.31 | $359,638.31 |
| 44.00% | $2,616.67 | $339,212.70 | $379,212.70 |
| 46.00% | $2,758.33 | $358,787.09 | $398,787.09 |
| 48.00% | $2,900.00 | $378,361.49 | $418,361.49 |
| 50.00% | $3,041.67 | $397,935.88 | $437,935.88 |