Home affordability calculator

The honest answer - based on the actual debt-to-income ratios lenders use.

Most affordability calculators tell you what you could borrow. We tell you what you should borrow. Lenders qualify you on a back-end DTI of 43-50% (FHA goes to 56.99% with compensating factors). The 28/36 rule says housing should stay under 28% of gross income and total debt under 36%. Use the lender max if you have to. Use the 28/36 number if you want to sleep at night.

Worked examples

Real numbers for common scenarios. These are estimates - your final closing disclosure will reflect the exact fees your specific loan and property require.

Scenario

$120,000 household income, $650/mo other debts, 20% down, 7.0% rate, 1.1% tax rate, $130/mo insurance

Inputs

Income: $120,000/yr
Other monthly debts: $650
Down payment: 20%
30-yr fixed rate: 7.0%

Estimate

Lender max price (43% DTI): $485,000
Comfortable max (28% front-end): $385,000
Estimated monthly P+I+T+I (comfortable): $2,800

Run your own numbers

The calculator gives you the same itemized breakdown for any price, down payment, loan type, and location.

Open the calculator

Frequently asked questions

What is the 28/36 rule?+

Spend no more than 28% of gross monthly income on housing (mortgage + tax + insurance + HOA), and no more than 36% on all debt combined. It's a guideline, not a rule. Most lenders allow higher ratios. Most financial planners recommend lower.

Does student loan debt affect how much house I can buy?+

Yes - significantly. Lenders include your monthly student loan payment in your back-end DTI. Even on income-driven repayment, FHA and conventional now use either the actual payment or 0.5% of the loan balance, whichever is greater. $80,000 in student loans can reduce your max purchase price by $60,000-$100,000.

What's a good DTI for buying a house?+

Under 36% total DTI is comfortable. 36-43% is workable. 43-50% is the upper limit for most conventional loans. Above 50% is FHA territory with compensating factors (high credit score, large reserves). Lower DTI also gets you a better interest rate.

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All numbers shown are estimates for planning purposes. Closing costs, taxes, and fees vary by lender, title company, county, and individual transaction. LoanElk is not a lender, broker, or financial advisor. Your final Loan Estimate and Closing Disclosure are the authoritative figures.