Affordability is not the same as approval, and it is definitely not the same as comfort. Lenders apply debt-to-income (DTI) ratios to decide what they will finance; this calculator applies the same rules to show the most expensive house that fits your numbers before you start viewing properties.
Maximum home price
$300,000
$260,000 mortgage plus your $40,000 down payment. Estimated monthly housing cost $2,100.00.
Everything except principal and interest is set by where you buy, not by your income.
| Home price | Loan amount | Principal & interest | Total housing |
|---|---|---|---|
| $240,000 | $200,000 | $1,264.14 | $1,654.14 |
| $270,000 | $230,000 | $1,453.76 | $1,873.76 |
| $300,000 (maximum) | $260,000 | $1,643.38 | $2,093.38 |
| $330,000 | $290,000 | $1,833.00 | $2,313.00 |
Same down payment at every price point, so the monthly figure reflects the price difference alone.
The estimate includes property tax, homeowners insurance and HOA dues, because a lender counts those in the housing payment — and because a $400,000 house with 2.5% taxes costs meaningfully more per month than the same house at 0.6%.
The front-end ratio caps housing costs at 28% of gross monthly income. The back-end ratio caps all debt payments — housing plus car loans, student loans, minimum card payments and personal loans — at 36%.
The calculator applies both and reports whichever binds first. A household with large existing debts usually hits the back-end limit and can afford less house, even on a strong income.
Property tax depends on the home price, so the maximum price cannot be read straight off a payment table. The calculator solves the equation algebraically: it finds the loan amount whose payment, added to tax, insurance, HOA and existing debts, exactly consumes the DTI budget.
The result therefore reflects your local tax rate instead of a national average, which matters most in high-tax states.
Closing costs, moving expenses, emergency repairs and mortgage insurance are excluded from the DTI test. If your down payment is below 20%, budget an extra 0.3% to 1.5% of the loan per year for PMI and expect a lender to approve slightly less.
Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.
Maximum home price
$300,000
$260,000 mortgage plus your $40,000 down payment. Estimated monthly housing cost $2,100.00.
The front-end housing limit binds first: the 28% cap on housing is reached before total debts hit 36%.
Maximum home price
$425,000
$365,000 mortgage plus your $60,000 down payment. Estimated monthly housing cost $3,300.00.
Existing debt and a high tax rate pull the maximum price well below the headline income multiple.
Maximum home price
$435,000
$385,000 mortgage plus your $50,000 down payment. Estimated monthly housing cost $3,100.00.
Many lenders approve up to 43% with compensating factors — a bigger number, and a bigger risk to the household budget.
It is your monthly debt payments divided by gross monthly income. Lenders look at housing costs alone (front-end) and all debts together (back-end). 28% and 36% are the conservative guidelines; 31% and 43% are common maximums for conventional approvals.
Usually not. Approval leaves no room for repairs, medical bills, a layoff or a cut in hours. Many buyers find a house priced 10% to 20% below their maximum is the point where the payment still allows them to keep saving.
Every extra dollar of down payment adds directly to the price you can afford, and once you reach 20% of the price the mortgage insurance cost disappears, which frees more monthly budget. Keep closing costs and an emergency fund out of the down payment pot.
Lenders use gross (pre-tax) income for the DTI test. Your take-home pay is smaller, so a payment that fits the 28/36 rule can still feel tight. Compare the result with your actual bank balance, not your salary.
Run the calculator twice, once with the debt and once without. Underwriters generally count debts you will carry at closing, so a car loan with two payments left may still be included until it is genuinely repaid.
It flags when PMI is likely but does not add it to the housing payment, because the DTI test lenders apply is normally calculated on principal, interest, taxes, insurance and HOA dues. Add the PMI estimate from the mortgage calculator to the monthly figure if your down payment is under 20%.
Last reviewed 2026-09-13. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.