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A household using common 28 and 36 screens
Take 7,500 of gross monthly income, 400 of other debts, a 28% housing cap, a 36% total DTI cap, a 6.5% rate, 30 years, 20% down, and 600 a month for taxes, insurance, and HOA.
Gross monthly income: 25% lower
Change gross monthly income to 5,625 while keeping the other example values the same.
Gross monthly income: 25% higher
Change gross monthly income to 9,375 while keeping the other example values the same.
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Quick answer
What does the House affordability calculate?
What home price fits your income, debts, rate, and down payment? This calculator uses gross monthly income, other monthly debt payments, maximum housing cost share, maximum total debt-to-income, annual mortgage rate, loan term, down payment, and monthly taxes, insurance, and hoa to estimate income-based home price ceiling immediately in your browser.
With the values currently entered, the result is $296,645.29 — estimated maximum home price. It also shows maximum principal and interest, maximum piti, binding limit, loan amount, down payment, and total dti at this cap.
How to use the House affordability
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Gross monthly income
- Other monthly debt payments
- Maximum housing cost share — entered in %
- Maximum total debt-to-income — entered in %
- Annual mortgage rate — entered in %
- Loan term — entered in years
- Down payment — entered in %
- Monthly taxes, insurance, and HOA
House affordability formula
Max PITI = lower of income × housing % and income × DTI % − other debts; loan = present value of (PITI − extras); price = loan ÷ (1 − down %)
Assumptions
- CFPB defines DTI as monthly debt payments divided by gross monthly income. Lenders set their own limits, so the two percentage inputs stay in your hands.
- The 28% and 36% defaults are common screening starting points, not a legal cap. Taxes, insurance, and HOA are the extras you enter; the rate stays fixed.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Defines DTI as monthly debt payments divided by gross monthly income, and notes that lenders set their own limits.
Truth in Lending (Regulation Z)US Consumer Financial Protection BureauScope: US lending disclosuresDefinitions and disclosure rules for APR, mortgages, credit cards, and consumer loans.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
House affordability example and edge cases
A home price is only affordable if the payment, taxes, and insurance fit the income limits you set. Lenders often screen housing cost and total debt separately.
Example: A household using common 28 and 36 screens
Take 7,500 of gross monthly income, 400 of other debts, a 28% housing cap, a 36% total DTI cap, a 6.5% rate, 30 years, 20% down, and 600 a month for taxes, insurance, and HOA.
- Gross monthly income
- 7,500
- Other monthly debt payments
- 400
- Maximum housing cost share
- 28 %
- Maximum total debt-to-income
- 36 %
- Annual mortgage rate
- 6.5 %
- Loan term
- 30 years
- Down payment
- 20 %
- Monthly taxes, insurance, and HOA
- 600
Calculated result$296,645.29estimated maximum home price
The binding limit is the useful line. If housing percent is tighter than total DTI, raising income or lowering extras moves the price more than a small rate change.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- CFPB defines DTI as monthly debts divided by gross monthly income. The two percentage fields are yours because lenders do not share one official cap.
- Compare the result with the mortgage payment calculator at that price. Then look at cash to close, because a higher price also needs a larger down payment.
Edge cases worth checking
The quoted rate is not locked
Run the same income at a higher rate. A cheap teaser rate can make a house look affordable that the locked rate cannot support.
Other debts include a car that ends next year
Keep the payment in while it is still required. A lender will. Recalculate after the last instalment if you want the later ceiling.
What changes the result most
Gross monthly income
Use a current amount for gross monthly income. Include fees or recurring costs that belong in the same figure.
Other monthly debt payments
Use a current amount for other monthly debt payments. Include fees or recurring costs that belong in the same figure.
Maximum housing cost share
Test a lower and higher maximum housing cost share. A small percentage change can move the final result more than expected.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Gross monthly income: 25% lower
5,625$192,819.44estimated maximum home price
Gross monthly income: 25% higher
9,375$400,471.14estimated maximum home price
Other monthly debt payments: 25% higher
500$296,645.29estimated maximum home price
Common mistakes
Check gross monthly income
CFPB defines DTI as monthly debt payments divided by gross monthly income. Lenders set their own limits, so the two percentage inputs stay in your hands. Make sure this matches the number you enter.
Keep monthly taxes, insurance, and hoa consistent
The 28% and 36% defaults are common screening starting points, not a legal cap. Taxes, insurance, and HOA are the extras you enter; the rate stays fixed. Use the same units and time period throughout the calculation.
Do not rely on one house affordability scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What home price fits your income, debts, rate, and down payment?
It cannot replace a lender quote, lease, survey, or purchase contract.