House Affordability Calculator
Estimate a home-price budget from your chosen debt-to-income cap, housing costs and fixed-rate loan terms.
Formula
P&I budget = max(0, income×DTI/100−other debts−housing costs); price = loan PV + down
Principal and interest (money/month) ≈ max(0,(5,000)×(36)÷100-(500)-(300)) · Loan capacity (money) ≈ (1,000)×(1-(1+(6)÷1200)^(-(360)))÷((6)÷1200) · Home-price budget (money) ≈ (166,791.6144)+(40,000)
How to use
- Enter gross monthly income, your DTI cap and other debt payments.
- Set monthly tax/insurance/HOA costs, cash down, rate and term.
- Read the principal-and-interest budget and estimated home price.
Examples
- Income 1,000, DTI 30%, debts 100, housing costs 100: loan budget 100/month.
Frequently asked questions
Is the DTI cap a lending rule?
No. You choose it; this does not determine approval or affordability for your household.
Which housing costs belong here?
Monthly property tax, insurance, mortgage insurance and association fees; update estimates for the target home.
Are closing costs included?
No. Enter cash down after reserving closing costs and emergency savings.
Sources
Updated: