How Much House Can I Afford?
Calculate your maximum home price based on income, debts, and down payment. See conservative, moderate, and aggressive affordability ranges with DTI analysis.
Last updated October 18, 2026
How our math works
- 30-year fixed-rate loan at 6.75% interest, fully amortizing
- Property tax 1.2% of home value/yr, insurance $1,800/yr; PMI added when the down payment is under 20%
- Rates shown are interest rates used for estimation only — not APRs and not offers. APR reflects fees and other loan costs and may differ from the interest rate shown.
My scenario
Enter income, debts, price, and rate once. Every calculator pre-fills.
Location
Optional — refines the state estimate
Income & Debts
$
$
Car loans, credit cards, student loans, etc.
$
Loan Details
%
Credit Score
%
Annual rate as % of home value
$
$
Recommended Home Price
$452,957
Moderate scenario — based on 36% back-end DTI (incl. debts) with $3,100/month payment incl. $78 PMI
$10,000
$80,000
18% of moderate$500/mo
36%
GoodAlternative Scenarios
How a safer option and maximum qualification compare to your recommended price above
Conservative (28/36 Rule)
Safest option with breathing room for unexpected expenses
Binding constraint: 28% front-end DTI (housing only)$413,971
$2,800/month (incl. $70 PMI)
Aggressive (43% Back-End DTI)
Top of typical guideline ranges — leaves little room for error
Binding constraint: 43% back-end DTI (incl. debts)$538,940
$3,799/month (incl. $134 PMI)
Price vs Annual Payment
Compare home prices and what you'll pay each year
Conservative: Home Price $413,971, Annual Payment $33,600; Moderate: Home Price $452,957, Annual Payment $37,200; Aggressive: Home Price $538,940, Annual Payment $45,588.
Monthly Budget Impact
How each option affects your monthly finances
Monthly income remaining after housing payment:
Conservative
$7,200 left
Moderate
$6,900 left
Aggressive
$6,201 left
Key Insights
What these numbers mean for you
Insight
Conservative ($413,971): Safest option with breathing room for unexpected expenses
Insight
Moderate ($452,957): Balanced approach - most common choice for stable income
Insight
Aggressive ($538,940): Top of typical guideline ranges - leaves little room for error
Insight
Your $500/month in other debts is the binding constraint: the 36% back-end rule caps your housing payment at $3,100/month instead of $3,600. Paying down debts raises your budget dollar-for-dollar.
Tip
Your down payment is below 20% at the recommended price, so $78/month PMI is already included in these payments. PMI drops off once you reach 20% equity.
The Bottom Line
With a $120,000 annual income and $80,000 down payment, we recommend looking at homes up to $452,957. This keeps your monthly payment at $3,100, leaving you with $6,900 each month for other expenses.
Here are the exact formulas behind your numbers. No black boxes — just math.
Maximum Monthly Payment
Monthly Gross Income
Front-End Cap (28% rule)
Back-End Cap (36% rule)
Binding Constraint
Home Price from Payment
Monthly Rate
Number of Payments
PMI (if LTV > 80%)
Loan Amount
Max Home Price
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Frequently Asked Questions
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined. This calculator applies both limits — plus your down payment, rate, taxes, and insurance — to produce conservative, moderate, and aggressive price ranges.
Conventional loans generally allow back-end DTI up to 45% (sometimes 50% with strong compensating factors), FHA up to about 50% with compensating factors, and VA loans are evaluated more holistically around residual income. Lower DTI means better pricing and less payment stress.
Yes. Monthly debts like car loans, student loans, and credit card minimums are counted against your back-end DTI, which usually becomes the binding constraint. The results label which limit — housing ratio or total-debt ratio — is capping your budget.