Mortgage Affordability Calculator

USA Home Buying Tool
Mortgage Affordability Calculator (USA)
Find out how much house you can afford based on your income, debts, and lender DTI limits. Supports Conventional, FHA, and VA loan programs.
Live calculation
DTI analysis
FHA / VA / Conventional
Shareable link
Income & Debts
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$
$
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yrs
Additional Costs
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Percent of home price per year. Rates run from about 0.3% to 2.2% depending on the state.
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Loan Program & DTI Limits
31/43 is FHA’s standard limit. Higher ratios are possible with compensating factors or automated approval.
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28/36 Rule
A conservative guideline: housing up to 28% and total debts up to 36% of gross income. Many loans allow more.
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Reduce Debts First
Lower debt can raise your budget when debts are what limit you. Example: at 6.5% to 7%, each $100/mo paid off adds about $12k to $14k.
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FHA = More Flexible
FHA’s standard limits are 31/43 DTI with as little as 3.5% down.
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Get Pre-Approved
A pre-approval letter shows sellers you're a serious buyer.
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Ready to calculate
Enter your income and financial details on the left, then click Calculate Affordability to see your home buying budget with full DTI breakdown.
Your Affordability Results
Example using the default values. Change any field to see your own numbers.
Estimated Maximum Home Price
$0
Based on your income and DTI limits
Front-end DTI
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Housing / income
Back-end DTI
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All debts / income
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Loan Amount
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After down payment
Down Payment
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Cash needed at closing
Monthly Payment
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P&I, tax, insurance, MI, HOA
Monthly P&I
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Principal & interest only
Monthly Income
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Gross monthly
Mortgage Insurance
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DTI Breakdown
Front-end DTI (Housing) -
Back-end DTI (All Debts) -
Monthly Payment Breakdown
Disclaimer: This calculator provides estimates for educational purposes only. Results are based on standard DTI guidelines and do not constitute a loan offer or financial advice. Actual approval depends on credit score, employment history, lender requirements, and loan program guidelines. Consult a licensed mortgage professional before making any decisions.

The mortgage affordability calculator answers the first question every home buyer asks: how much house can I afford? Your budget isn't just about income. It depends on your monthly debts, down payment, interest rate, property taxes, insurance, and the DTI limits your lender uses. This free tool calculates your maximum home price using the debt-to-income framework lenders use, including each loan program’s mortgage insurance rules and minimum down payment. Whether you're a first-time buyer in California, a veteran using VA benefits in Texas, or a repeat buyer comparing loan programs in Florida, this calculator gives you a realistic number before you start house hunting.

50%
Max total DTI for Conventional loans through Fannie Mae automated underwriting
43%
FHA standard back-end DTI limit (higher with compensating factors)
3.5%
Minimum down payment for FHA loans
0%
Down payment required for VA loans

What Is a Mortgage Affordability Calculator?

A mortgage affordability calculator estimates the maximum home price you can qualify for based on your financial profile. A payment calculator starts with a price and tells you the monthly cost. An affordability calculator works the other way: it starts with your income and debts and finds the price that fits.

Lenders evaluate your affordability using the debt-to-income (DTI) ratio: the percentage of your gross monthly income that goes toward debt payments. There are two types every buyer needs to understand:

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Front-End DTI (Housing Ratio)

The percentage of your gross monthly income going toward housing costs only: principal, interest, taxes, insurance (PITI), mortgage insurance, and HOA fees. Common guidelines are 28% for conventional loans and 31% for FHA.

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Back-End DTI (Total Debt Ratio)

The percentage of your income going toward ALL monthly debt payments: housing plus car loans, student loans, credit cards, personal loans, and other obligations. Limits range from 36% to 50% depending on the program and how the loan is underwritten.

How this calculator works: It finds your maximum monthly housing budget from both DTI limits and uses the lower one. It then finds the highest home price whose full payment fits that budget: principal and interest, property tax (as a percentage of the price), insurance, HOA, and your loan program’s mortgage insurance, including FHA’s upfront premium or the VA funding fee added to the loan. If your down payment is below the program minimum, the price is capped there.

DTI Limits by Loan Program

Different loan programs have different DTI guidelines. The calculator’s presets use the standard limits shown here; automated underwriting can approve higher ratios for strong borrowers.

Loan ProgramFront-End DTIBack-End DTIMin Down PaymentPMI Required?
ConventionalNo set limit (28% common guideline)36% manual (45% with strong credit and reserves), up to 50% automated3% for first-time buyers or income-eligible programs (HomeReady, Home Possible); typically 5% otherwisePMI if under 20% down, removable later
FHA31% standard43% standard, up to about 57% with automated approval3.5%1.75% upfront plus annual MIP based on loan amount, LTV, and term (0.50% to 0.55% for most 30-year loans); life of loan under 10% down, 11 years with 10%+
VANone41% guideline (not a hard cap), plus residual income0%No monthly MI; funding fee 1.25% to 3.3% (exempt with disability compensation)
USDA29%41%0%Guarantee fee (upfront and annual)
JumboSet by lenderOften 43% or lowerOften 10% to 20%Varies by lender

Note on VA loans: VA sets 41% as a guideline rather than a hard limit and has no separate front-end ratio, so this calculator applies 41% to both. VA lenders also check residual income (money left each month after major expenses), which this calculator does not model.

How to Use This Affordability Calculator

1

Enter Your Income and Monthly Debts

Use your gross annual income (before taxes). For debts, include all minimum monthly payments: car loans, student loans, credit cards, personal loans. Do NOT include utilities or groceries.

2

Set Your Down Payment and Rate

Enter how much you plan to put down. Mortgage insurance is added automatically based on your loan program. Use current mortgage rates and check with lenders for exact quotes.

3

Add Taxes, Insurance, and HOA

These are real costs that count toward your front-end DTI. Property tax is entered as a rate, from about 0.3% to 2.2% of home value a year depending on the state. Home insurance costs vary substantially by state, property, coverage level, and insurer. HOA varies widely.

4

Select Your Loan Program

Choose Conventional, FHA, VA, or Custom. The calculator applies that program’s standard DTI limits, mortgage insurance rules, and minimum down payment.

5

Review Your Budget and Get Pre-Approved

Use the result as your target price range. Then get a formal pre-approval from a licensed lender before making an offer, which strengthens your position with sellers.

Tips to Increase Your Home Buying Budget

If your affordable home price is lower than you hoped, here are the most effective ways to increase it:

  • Pay off or reduce monthly debts. At typical mortgage rates, reducing monthly debt can materially increase your borrowing capacity when your debts are what limit you (back-end DTI). For example, at 6.5% to 7% with a 1% property tax rate and $2,500 a year for insurance, each $100 a month paid off adds roughly $12,000 to $14,000 of buying power. The calculator shows your exact figure.
  • Increase your down payment. More down means a smaller loan, lower monthly payment, and potentially no PMI.
  • Improve your credit score. The best conventional pricing goes to scores of 780 or above, and even a 0.5% lower rate adds meaningful buying power.
  • Choose a longer loan term. A 30-year term has lower payments than 15-year, allowing you to qualify for a larger loan.
  • Compare loan programs. FHA’s standard limits (31/43) are higher than the conservative 28/36 guideline, but FHA adds mortgage insurance on every loan. Conventional loans approved through automated underwriting can allow total DTI up to 50%.
  • Shop multiple lenders. Different lenders apply DTI guidelines differently, and some allow higher ratios for strong compensating factors like large reserves.

Frequently Asked Questions About Mortgage Affordability

How much house can I afford on my salary?
It depends on your income, monthly debts, down payment, interest rate, and the debt-to-income (DTI) limits of your loan program. A common conservative guideline keeps housing costs near 28% of gross monthly income and all debts near 36%, but many loans allow more: Fannie Mae's automated underwriting accepts total DTI up to 50%, and FHA's standard limits are 31% and 43%. Enter your numbers above for a personalized estimate.
What is the 28/36 rule in mortgage lending?
The 28/36 rule is a conservative budgeting guideline: housing costs up to 28% of gross monthly income (front-end DTI) and total debt payments up to 36% (back-end DTI). It matches Fannie Mae's 36% limit for manually underwritten loans, but it is not the maximum most lenders allow. Fannie Mae's automated underwriting accepts total DTI up to 50%, FHA's standard limits are 31/43, and VA uses 41% as a guideline. Pick a loan program above to apply its limits.
How much house can I afford with $100k income?
With $100,000 of income, $300 in monthly debts, the conservative 28/36 guideline, a 1% property tax rate, and $2,500 a year for insurance, this calculator estimates roughly $290,000 to $335,000 at rates of 6.5% to 7% with 10% to 20% down. Higher DTI limits (such as FHA or automated conventional approvals), a larger down payment, or lower taxes raise that number, and more debt lowers it.
What DTI ratio do I need to qualify for a mortgage?
It depends on the loan program and how the loan is underwritten. Conventional: Fannie Mae allows up to 36% total DTI when manually underwritten (45% with strong credit and reserves) and up to 50% through its automated system. FHA: 31% for housing and 43% in total is the standard, with higher ratios possible through compensating factors or automated approval (up to about 57%). VA: 41% is a guideline, not a hard maximum; above it, VA looks for extra residual income. A lower DTI generally makes approval easier.
Does this affordability calculator include mortgage insurance?
Yes, and it follows each program's rules. Conventional loans include estimated PMI of about 0.7% of the loan per year when you put down less than 20%. FHA loans include the 1.75% upfront mortgage insurance premium (added to the loan) plus annual MIP on every FHA loan, even with 20% down. The annual rate depends on the loan amount, down payment (LTV), and loan term; for most 30-year FHA loans it is 0.50% or 0.55%. VA loans have no monthly mortgage insurance; instead, the VA funding fee (1.25% to 3.3%, or $0 if you are exempt) is added to the loan.
What is front-end vs back-end DTI?
Front-end DTI is the share of your gross monthly income that goes to housing: principal, interest, property tax, insurance, mortgage insurance, and HOA. Back-end DTI adds all other monthly debt payments, such as car loans, student loans, and credit card minimums. Your budget is set by whichever limit is reached first, and the calculator tells you which one it is.
How does a larger down payment affect affordability?
Each extra dollar of down payment adds close to a dollar to the price you can afford, slightly less because property tax rises with the price. The bigger jumps come at thresholds: reaching 20% down on a conventional loan removes PMI, and on FHA or VA loans a larger down payment can lower the mortgage insurance rate or funding fee. A larger down payment also reduces your loan amount and total interest.
Is this the exact amount a lender will approve?
No. This tool gives a planning estimate based on standard DTI guidelines. Actual approval depends on your credit score, employment history, assets, the loan program, automated underwriting findings, and individual lender requirements. Use it to set a target range, then get pre-approved by a licensed lender before making an offer.
What debts should I include in the monthly debts field?
Include the minimum monthly payments on debts that appear on your credit report: car loans, student loans (lenders also count deferred student loans using a set formula), credit card minimums, and personal loans, plus child support or alimony. Do not include utilities, phone bills, groceries, subscriptions, or insurance premiums, since lenders count only credit obligations and court-ordered payments in DTI.
Sanjeev Kumar - Founder of OurNetHelps

👨‍💻 About the Creator

Sanjeev Kumar is the founder of OurNetHelps.com, a mortgage technology platform that builds borrower readiness tools for US mortgage brokers, including MDE Pro, a borrower assessment tool brokers use before application. He has over a decade of experience building WordPress-native tools and automation systems.

✅ Personally developed, tested, and maintained by Sanjeev.

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🕒 Last Updated: September 26, 2026 • Version 2.1
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