Estimate the maximum home price and loan amount you can afford based on your income, existing debts, down payment and loan terms.
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This calculator works backward from your maximum allowed monthly housing payment, income × your target debt-to-income ratio, minus existing debts, to solve for the largest loan (and home price) whose combined principal, interest, property tax and insurance payment fits that budget.
It accounts for the fact that a higher home price means a higher property tax bill, so the loan amount and the tax estimate are solved together rather than one being an afterthought.
For example, with 90,000 annual income, no existing monthly debts, a 40,000 down payment, 6.5% interest over 30 years, 1.2% property tax, 1,200 annual insurance, and a 36% max DTI, this calculator caps the estimated monthly PITI payment at 2,700, which supports a maximum home price of about 389,694.28 (a 349,694.28 loan plus the 40,000 down payment).
PITI stands for Principal, Interest, Taxes and Insurance, the four components typically bundled into a single monthly mortgage payment. This calculator estimates all four so the 'maximum home price' reflects what you can actually afford to pay each month, not just the loan payment alone.
Using a maximum DTI limit as a spending target rather than a ceiling, being approved for the maximum doesn't mean it's comfortable once other expenses, savings goals, and irregular costs are factored in.
Forgetting HOA fees and PMI, which aren't included here, on a low down payment purchase PMI alone can meaningfully raise the true monthly payment beyond this estimate.
Using a rough property tax rate estimate for the wrong location, property tax rates vary significantly by city and county, and materially affect the maximum affordable home price.
36% is a commonly used conservative guideline, though some lenders allow up to 43-50% depending on your credit profile and loan type. Check with a lender for the specific limit that applies to you.
No, this estimates principal, interest, property tax and homeowners insurance only. If your property has HOA dues or you'll need private mortgage insurance (PMI, typically required with under 20% down), factor those into your own budget separately.
Debt-to-Income (DTI) Calculator
Calculate your debt-to-income ratio for loan and mortgage qualification.
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