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Read guide →How Much House Can I Afford
Max purchase price from income, debts and DTI.
📐 How Much House Can I Afford
Maximum home price
at % down · monthly PITI
Loan amount
Monthly P&I
Front-end DTI
Back-end DTI
"Affordable" by DTI ≠ comfortable. Many borrowers prefer to cap housing at the classic 28% front-end to leave room for savings, repairs and rate shocks. PMI is not modeled here — drop ~0.5% / yr of the loan if your down payment is under 20%.
How to Use
- Enter your gross monthly income and other monthly debts (cars, student loans, minimum card payments).
- Enter your down payment and the mortgage rate & term you expect.
- Choose a target DTI (28% conservative, 36% standard, 43% QM cap, 50% FHA stretch).
- The maximum home price you can afford updates live.
Calculation Method
Maximum monthly PITI = (income × DTI%) − other debts. We back-solve the home price algebraically: with M = monthly mortgage payment factor and T = monthly property-tax factor, price = (maxPITI − insurance − HOA + down × M) ÷ (M + T). PMI is not modeled — if you'll put under 20% down, subtract another ~0.5% / yr of the loan from your buying power.
Examples
$8,500 / mo income, $600 debts, $50k down, 6.75% / 30 yr, 36% DTI
Roughly $475,000 max home price at about $2,460 / mo PITI.
Frequently Asked Questions
Conventional Qualified Mortgages typically cap back-end DTI at 43%. FHA loans frequently allow up to 50% with compensating factors (large savings reserves, high credit score).
A classic affordability guideline: housing (PITI) should not exceed 28% of gross monthly income (front-end), and total debt should not exceed 36% (back-end).
Lenders only test debt versus income. They don't see your retirement savings, childcare, or maintenance reserve. Many borrowers buy 10–20% below their maximum approval.
Conventional loans go as low as 3% down; FHA 3.5%; VA & USDA 0%. Putting 20% down avoids PMI on conventional loans.
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Read guide →Disclaimer
Calculations are estimates based on the information you provide. Actual loan terms, rates, and payments vary by lender, credit score, and other factors. SmartLoanCalcs is not a lender and this is not a loan offer. We are not responsible for decisions made based on these calculations — consider consulting a licensed lender or financial advisor.
Last updated: May 24, 2026