Home Affordability Calculator
Enter your income, monthly debts, down payment, rate, and property costs to solve your maximum home price. On the default inputs, a $2,800 housing cap supports a $423,432.36 purchase price.
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Maximum home price and monthly payment breakdown
Maximum Home Price
$423,432.36
Your maximum home price is $423,432.36 ($363,432.36 loan plus $60,000.00 down).
On $10,000.00/mo gross income, your front-end limit (28%) caps monthly PITI housing at $2,800.00.
Property tax takes $352.86/mo and insurance takes $150.00/mo, leaving $2,297.14/mo for principal and interest. Housing is 28% and housing plus debts is 33% of gross monthly income.
Your down payment is 14% of the price (86% LTV). Adding a 0.50% annual PMI premium (~$143.10/mo) lowers the ceiling to $403,430.17. Your $363,432.36 loan sits $469,317.64 below the 2026 FHFA baseline limit ($832,750.00).
Your income, debts, down payment, and loan terms
- Monthly income = $120,000.00 ÷ 12 = $10,000.00
- Max housing = min($2,800.00, $3,100.00) = $2,800.00
- Annuity factor a = 158.2108 (6.5%, 360 mo)
- P&I = ($2,800.00 − $50.00 − $150.00) ÷ 1.1318 = $2,297.14
- Max loan = $2,297.14 × 158.2108 = $363,432.36
- Max price = $363,432.36 + $60,000.00 = $423,432.36
Maximum home price and loan by underwriting program
Maximum home price across mortgage interest rates
Maximum home price by household income
Each row is a gross annual income with $500.00/mo debts, $60,000.00 down, 6.5% over 30 years, 1% property tax, $1,800.00/yr insurance, and 28%/36% DTI limits.
| Gross annual income | Monthly housing payment | Maximum loan | Maximum home price | Limited by |
|---|---|---|---|---|
| $50,000 | $1,000.00 | $111,825.34 | $171,825.34 | Back-end limit (36%) |
| $60,000 | $1,300.00 | $153,759.84 | $213,759.84 | Back-end limit (36%) |
| $75,000 | $1,750.00 | $216,661.60 | $276,661.60 | Back-end limit (36%) |
| $90,000 | $2,100.00 | $265,585.18 | $325,585.18 | Front-end limit (28%) |
| $100,000 | $2,333.33 | $298,200.91 | $358,200.91 | Front-end limit (28%) |
| $120,000 (closest to your input) | $2,800.00 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| $150,000 | $3,500.00 | $461,279.53 | $521,279.53 | Front-end limit (28%) |
| $200,000 | $4,666.67 | $624,358.15 | $684,358.15 | Front-end limit (28%) |
| $250,000 | $5,833.33 | $787,436.77 | $847,436.77 | Front-end limit (28%) |
Maximum home price for each income at six interest rates.
| Gross Annual Income by interest rate | 5.5% | 6% | 6.5% | 7% | 7.5% | 8% |
|---|---|---|---|---|---|---|
| $50,000 | $182,864.78 | $177,150.23 | $171,825.34 | $166,861.04 | $162,230.17 | $157,907.48 |
| $60,000 | $228,939.07 | $221,081.56 | $213,759.84 | $206,933.92 | $200,566.49 | $194,622.79 |
| $75,000 | $298,050.50 | $286,978.57 | $276,661.60 | $267,043.26 | $258,070.96 | $249,695.75 |
| $90,000 | $351,803.84 | $338,231.79 | $325,585.18 | $313,794.96 | $302,796.66 | $292,530.27 |
| $100,000 | $387,639.40 | $372,400.61 | $358,200.91 | $344,962.76 | $332,613.79 | $321,086.62 |
| $120,000 (closest to your input) | $459,310.52 | $440,738.24 | $423,432.36 | $407,298.37 | $392,248.06 | $378,199.32 |
| $150,000 | $566,817.20 | $543,244.69 | $521,279.53 | $500,801.77 | $481,699.46 | $463,868.37 |
| $200,000 | $745,995.00 | $714,088.78 | $684,358.15 | $656,640.78 | $630,785.12 | $606,650.12 |
| $250,000 | $925,172.80 | $884,932.86 | $847,436.77 | $812,479.79 | $779,870.79 | $749,431.86 |
How recurring monthly debts shift the binding limit and price
Varies monthly non-housing debt payments from $0 to $2,000 at $120,000.00 income, $60,000.00 down, 6.5% over 30 years, and 28%/36% DTI limits.
| Monthly debts | Monthly housing payment | Maximum loan | Maximum home price | Limited by |
|---|---|---|---|---|
| $0 / month | $2,800.00 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| $250 / month | $2,800.00 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| $500 / month (closest to your input) | $2,800.00 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| $800 / month | $2,800.00 | $363,432.36 | $423,432.36 | Back-end limit (36%) |
| $1,000 / month | $2,600.00 | $335,476.02 | $395,476.02 | Back-end limit (36%) |
| $1,250 / month | $2,350.00 | $300,530.60 | $360,530.60 | Back-end limit (36%) |
| $1,500 / month | $2,100.00 | $265,585.18 | $325,585.18 | Back-end limit (36%) |
| $1,750 / month | $1,850.00 | $230,639.76 | $290,639.76 | Back-end limit (36%) |
| $2,000 / month | $1,600.00 | $195,694.35 | $255,694.35 | Back-end limit (36%) |
Maximum price across underwriting programs on your income and debts
| Underwriting program | Front / back cap | Max monthly housing | Principal & interest | Maximum loan | Maximum home price | Binding limit |
|---|---|---|---|---|---|---|
| Your entered limits | 28% / 36% | $2,800.00 | $2,297.14 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| Conventional 28/36 starting values | 28% / 36% | $2,800.00 | $2,297.14 | $363,432.36 | $423,432.36 | Front-end limit (28%) |
| FHA ratio caps only (HUD 4000.1) | 31% / 43% | $3,100.00 | $2,562.19 | $405,366.86 | $465,366.86 | Front-end limit (31%) |
| VA benchmark (41% total DTI) | None / 41% | $3,600.00 | $3,003.95 | $475,257.70 | $535,257.70 | Back-end limit (41%) |
| Fannie Mae manual max (B3-6-02) | None / 45% | $4,000.00 | $3,357.36 | $531,170.37 | $591,170.37 | Back-end limit (45%) |
| Fannie Mae Desktop Underwriter max | None / 50% | $4,500.00 | $3,799.12 | $601,061.20 | $661,061.20 | Back-end limit (50%) |
On $120,000.00/yr income and $500.00/mo debts, the maximum home price ranges from $423,432.36 to $661,061.20 across these rows. Your entered caps give $423,432.36. Each row applies that program's ratio caps only. Mortgage insurance (including FHA's upfront and monthly premiums), program fees, minimum down payments and credit-score conditions are not included, so the FHA row overstates what an FHA loan supports.
Interest rate sensitivity at your binding housing budget
| Interest rate (%) | Annuity factor (a) | Principal & interest | Monthly property tax | Maximum loan | Maximum home price |
|---|---|---|---|---|---|
| 5.00 | 186.28 | $2,250.62 | $399.38 | $419,250.06 | $479,250.06 |
| 5.50 | 176.12 | $2,267.24 | $382.76 | $399,310.52 | $459,310.52 |
| 6.00 | 166.79 | $2,282.72 | $367.28 | $380,738.24 | $440,738.24 |
| 6.50 (entered) | 158.21 | $2,297.14 | $352.86 | $363,432.36 | $423,432.36 |
| 7.00 | 150.31 | $2,310.58 | $339.42 | $347,298.37 | $407,298.37 |
| 7.24 (30-yr PMMS avg) | 146.74 | $2,316.71 | $333.29 | $339,944.17 | $399,944.17 |
| 8.00 | 136.28 | $2,334.83 | $315.17 | $318,199.32 | $378,199.32 |
Holding your $2,800.00/mo binding housing budget fixed over 30 years, moving from the lowest rate row ($479,250.06 max price) to the highest rate row ($378,199.32 max price) shifts purchasing power by $101,050.73.
How lenders size a mortgage from front-end and back-end DTI limits
Lenders size a mortgage with two debt-to-income (DTI) ratios. On its What is a debt-to-income ratio? page, the CFPB defines DTI as all monthly debt payments divided by gross monthly income. The front-end ratio counts only housing: principal, interest, property tax, and insurance (PITI). The back-end ratio adds car loans, student loans, credit cards, personal loans, child support, and alimony. Your housing budget is the smaller of the two caps.
Part of that budget goes to property tax and hazard insurance before any money repays the loan. Property tax is a percentage of the price, so a bigger house raises the monthly tax bill. The calculator solves the linear equation that balances principal, interest, and property tax at the same time.
That net payment is multiplied by the annuity factor for your rate and term to find the maximum loan. Adding your down payment on top of that loan gives the maximum home price.
Both DTI caps are inputs because loan programs differ. Freddie Mac Guide Section 5401.2 sets a 36% guideline for a manual loan. Above 45%, the loan is ineligible for sale to Freddie Mac. Fannie Mae Selling Guide B3-6-02 allows 36% manually, up to 45% with strong credit and reserves, and 50% in Desktop Underwriter.
Front-end vs. back-end DTI limits and the crossover debt threshold
The binding housing payment is the smaller of the front-end cap and the debt-reduced back-end cap. Non-housing debts only cut your price after they pass a specific crossover point. That crossover is the gap between the two caps times gross monthly income. At 28% and 36%, the gap is 8% of monthly income. A household earning $10,000 a month can carry up to $800 a month in other debts before the back-end cap binds. Check your own ratio in the debt-to-income calculator.
Before the 2021 General QM Amendments, 12 CFR 1026.43(e)(2) required that the ratio of total monthly debt to total monthly income not exceed 43 percent. The amendments, published December 29, 2020, removed that rule. They put annual percentage rate thresholds in 12 CFR 1026.43(e)(2)(vi) in its place. They apply to applications received on or after March 1, 2021. Under 12 CFR 1026.43, compliance starts with applications received on or after October 1, 2022.
Closed-form home affordability formulas
monthly income = income ÷ 12 max housing = min(front % × monthly income, back % × monthly income − debts) r = rate ÷ 100 ÷ 12 n = term × 12 a = (1 − (1 + r)^−n) ÷ r (present value of $1/month; a = n when r = 0) P&I = (max housing − (tax % ÷ 100) × down payment ÷ 12 − insurance ÷ 12) ÷ (1 + (tax % ÷ 100) × a ÷ 12) max loan = P&I × a max price = max loan + down payment
How property taxes, insurance, PMI, and HOA dues compress loan size
Property taxes create a feedback loop on loan size. Every extra dollar you borrow raises the home price and increases the yearly tax bill. In our formula, the term (1 + taxRate × a ÷ 12) measures this drag. On a 30-year loan at 6.5% with 1% tax, the annuity factor is 158.210820 and the tax factor is 1.131842. Every $1.00 of monthly principal and interest needs $0.131842 of extra monthly tax room.
The CFPB page on PMI describes private mortgage insurance (PMI) as insurance you might be required to buy on a conventional loan with a down payment of less than 20 percent of the purchase price. The Homeowners Protection Act (12 U.S.C. §§ 4901 and 4902) covers a single-family home that is your principal residence. It lets a borrower ask in writing to cancel PMI once the balance is scheduled to reach 80% of the home's original value. The payment history must be good, payments current, the value not below the original, and no second lien. PMI must end on its own once the balance is scheduled to reach 78% of the original value, if payments are current. High-risk loans differ. On the default case, $60,000 down is 14.17% of the price (85.83% LTV). Adding a 0.50% annual PMI fee ($143.10/mo) cuts the maximum price to $403,430.17. Check PMI costs in the mortgage insurance calculator and cash goals in the down payment calculator.
Worked example: $120,000 income with $60,000 down at 6.5%
On a $120,000 income ($10,000 a month) the 28% front-end limit allows $2,800 of housing, and the 36% back-end limit allows $3,600 − $500 of other debts = $3,100. The front-end limit is lower, so the housing budget is $2,800.
With $60,000 down, 6.5% for 30 years, 1% property tax and $1,800 a year of insurance, $2,297.14 is left for principal and interest. That supports a loan of $363,432.36 and a price of $423,432.36, on which the property tax is $352.86 a month and the insurance $150.00.
Conventional, FHA, and VA underwriting caps and 2026 conforming loan limits
Agency and government loan programs use different ratio caps. HUD Handbook 4000.1 (Section II.A.5.a.viii) sets FHA manual caps at 31% front-end and 43% back-end. At a decision credit score of 580 or higher, no compensating factors are required at those caps. Below 580, ratios may not exceed them. On the default profile, those caps raise the housing budget to $3,100 and the price to $465,366.86, on a ratio basis only. The table leaves out FHA's upfront premium of 1.75 percent. It also leaves out FHA's monthly premium, which HUD counts in the total mortgage payment. It also leaves out the 3.5 percent minimum investment you put in. A real FHA price is lower; see the FHA maximum loan calculator. 38 CFR 36.4340(d) sets VA's debt-to-income standard at 41 percent or less, counting housing and other long-term obligations together. Applying only that ratio gives a $535,257.70 price. Fannie Mae Desktop Underwriter's 50% cap lifts the ceiling to $661,061.20.
Loan size also sets whether Fannie Mae or Freddie Mac can buy the mortgage. On November 25, 2025, FHFA set the 2026 baseline conforming loan limit at $832,750 for one-unit homes in most of the country. In high-cost areas the limit can rise to a ceiling of $1,249,125, which is 150 percent of the baseline. In Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the baseline is $1,249,125 and the ceiling is $1,873,675. Loans above the local limit need a jumbo mortgage; check your county in the conforming loan limit calculator.
Assumptions, regulatory scope, and underwriting limits
- The ratios are the limits you enter. 28% and 36% are only the starting values this page uses, not a lender's decision. The 43% debt-to-income rule for qualified mortgages under 12 CFR 1026.43(e)(2) was removed by the 2021 General QM Amendments (published December 29, 2020; mandatory October 1, 2022). Annual percentage rate thresholds replaced it.
- PMI, HOA dues, and closing costs are not deducted from the result. When your down payment is under one-fifth of the price, the summary line shows the PMI-adjusted ceiling at a 0.50% yearly PMI rate.
- The rate is fixed for the whole term and payments are monthly. Property tax is a flat yearly percentage of the price. The 6.5% default is a round figure: Freddie Mac's survey put the 30-year fixed average at 7.24% on October 29, 2026, and FHFA announced the 2026 conforming limits on November 25, 2025.
These figures are estimates for learning and planning, not financial, tax, legal or investment advice. Terms of use.
Interest rate sensitivity, term length, and upfront closing costs
When mortgage rates rise, the annuity factor shrinks. Each 1-point rise in the rate cuts the maximum loan by roughly 8% to 10% on the defaults, for rates from 3% to 10% on a 30-year term. A higher property tax rate makes the cut smaller. The monthly budget stays flat. A 15-year fixed loan (6.60% in Freddie Mac's survey, below the 7.24% 30-year average) has a lower rate and builds equity faster. However, the 180-month term shrinks the maximum loan; compare both terms in the mortgage term comparison calculator.
Buyers also need cash at closing for lender fees, title insurance, transfer taxes, and escrow deposits. Those upfront fees cannot come out of the down payment. Estimate your settlement cash in the closing costs calculator, or compare buying with renting in the rent vs. buy calculator.
How to act on your affordability ceiling
Read the maximum home price as a ceiling and pick a budget below it. Check Limited By first. When the front-end cap binds, paying off a small loan changes nothing. Once monthly debts pass the crossover ($800/mo on the defaults), cutting $100/mo of debt adds $13,978.17 to your price.
Weigh how your down payment changes both the price and loan-to-value. On the defaults, $30,000 down supports $396,926.90. Putting $100,000 down raises the ceiling to $458,772.97 and drops LTV below the 80% PMI mark.
Test your budget against a 0.50% higher interest rate before you shop. Moving from 6.5% to 7.0% on the defaults trims the maximum price by $16,133.99 (to $407,298.37) on the same monthly payment.
Switching to a 15-year term on the defaults cuts the maximum price to $332,410.85 ($272,410.85 loan). Send your target price to the mortgage payment calculator to add HOA dues, and check settlement cash in the closing costs calculator.
Frequently asked questions
How much house can I afford on a $100,000 salary?
Take $60,000 down, $500 of monthly debts, 1% property tax, and $1,800 a year of insurance. On a 30-year loan at 7.24% (Freddie Mac's average for October 29, 2026), the 28% front-end cap allows $2,333.33 a month. That supports a $278,928.55 loan and a $338,928.55 home price. At 6.5%, that salary affords $358,200.91.
How much house can I afford on $120,000 a year?
On the defaults, $120,000 a year affords a home price of $423,432.36. That combines a $363,432.36 loan with the $60,000 down payment. Because the 36% back-end cap leaves more room than the 28% front-end cap ($2,800/mo), the front-end cap binds.
Which debts count toward the back-end ratio?
Count recurring debts on your credit report or court order: car loans, student loans, minimum credit card payments, personal loans, child support, and alimony. Rent you will leave behind, utilities, and groceries do not count. The CFPB's example counts $2,000 of monthly debt payments, including a $1,500 mortgage, against $6,000 of gross monthly income, a 33 percent ratio.
How much do my other debts change the price?
Until the back-end limit binds, they change nothing: on the defaults, debts up to $800 a month leave the price flat. Raising debts to $1,000 a month makes the back-end limit bind and cuts the price to $395,476.02 ($27,956.34 less). At $1,500 a month the price falls to $325,585.18, and at $2,000 it falls to $255,694.35.
Why might a lender approve more than this page shows?
Lenders can approve higher ratios. Under Fannie Mae Selling Guide B3-6-02, manual loans allow up to 45% when borrowers meet credit score and reserve thresholds, and Desktop Underwriter allows up to 50%. Setting both limits to 45% on the defaults gives a $4,000 payment and a price of $591,170.37.
At what income does the loan pass the baseline conforming limit?
FHFA set the 2026 baseline conforming limit for one-unit homes at $832,750 in most of the country, with higher limits in high-cost areas and in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. On the defaults, a loan of that size needs an income of about $263,900. At $275,000 of income, the maximum loan is $868,976.08, which is above the baseline limit, so it is a jumbo loan in most of the country.
Sources
- CFPB, What is a debt-to-income ratio? (page reviewed Aug 28, 2023)
- CFPB, What is PITI? (page reviewed Sep 11, 2024)
- CFPB, What is private mortgage insurance? (page reviewed Aug 28, 2023)
- Regulation Z, 12 CFR 1026.43, minimum standards for transactions secured by a dwelling (CFPB text) (current version)
- Fannie Mae, Selling Guide B3-6-02, Debt-to-Income Ratios (form dated Apr 2, 2025)
- Freddie Mac, Single-Family Seller/Servicer Guide Section 5401.2, Monthly debt payment-to-income ratio (form dated Aug 5, 2026)
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Approvable Ratio Requirements (Manual) (form dated Aug 12, 2026)
- 38 CFR 36.4340, VA underwriting standards, debt-to-income ratio (Cornell LII text) (current version)
- 12 U.S.C. 4901, Homeowners Protection Act definitions (Cornell LII text) (current version)
- 12 U.S.C. 4902, termination of private mortgage insurance (Cornell LII text) (current version)
- FHFA, FHFA Announces Conforming Loan Limit Values for 2026 (form dated Nov 25, 2025)
- Freddie Mac, Primary Mortgage Market Survey (PMMS) (form dated Oct 29, 2026)
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