Estimate the home price that fits both your monthly budget and the cash you have, using the all-in payment rather than principal and interest alone.
Private by design. Your numbers stay on this device.
Educational estimates only. Not financial, tax, or lending advice.
Updated
A widely used personal benchmark keeps housing under about 28% of gross monthly income and total monthly debt (housing plus everything else) at or below 36%. On $140,000 of household income and $650 of existing debt payments, the 36% limit leaves $3,550 a month for housing and the 28% limit leaves $3,267, so $3,267 is the budget.
Two constraints decide the answer, and this calculator applies both: the monthly payment against your income and debts, and the cash you have for the down payment plus closing costs. The lower of the two sets your ceiling. The results show which one is binding, since more cash and more income fix different problems.
Lenders routinely approve above 43% DTI. Being approved for a payment and being comfortable with it are separate questions, and this tool answers the second.
Built for US mortgages. Every rate, cost and tax figure below is an editable example you enter, never a live quote.
At 28% housing-to-income and 36% total debt-to-income, your all-in monthly housing budget is $3,267. These are personal planning bands, and a lender may approve more or less.
Income supports
$521,500
$3,267/mo of housing at 28% housing-to-income and 36% total debt-to-income.
Cash supports
Binding$409,000
$90,000 covers a 20% down payment plus closing costs of 2.5% of the loan.
So you can afford
$409,000
The lower of the two. Cash is what stops you.
$400,000
Leaves the most room for saving, maintenance surprises and income changes.
All-in monthly cost
$2,539
Limited by: your housing-to-income ratio.
$409,000
Your own settings. A common personal planning benchmark, not an approval rule.
All-in monthly cost
$2,593
Limited by: your available cash.
Your income alone would support $521,500.
$409,000
Higher payment, thinner monthly cushion. Sustainable only with stable income and low other costs.
All-in monthly cost
$2,593
Limited by: your available cash.
Your income alone would support $628,000.
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At $500,000, your all-in monthly housing cost would be $3,137 and you would need $110,000 in cash at closing.
Debt-to-income at this price: 32.5% back-end, 26.9% housing only. LTV (loan-to-value): 80.0%.
The calculator searches for the highest price that satisfies two separate constraints, then takes the lower of the two:
1. The monthly payment on the loan
M = L x r / (1 - (1 + r)^-n) L = loan amount r = annual rate / 12 n = years x 12 M = monthly principal + interest
2. The all-in monthly housing cost
Housing = M
+ (property tax rate x price) / 12
+ annual insurance / 12
+ mortgage insurance (only while LTV > 80%)
+ HOA dues3. What your income allows (back-end DTI)
max housing = (gross annual income / 12) x DTI% - other monthly debts
This is a back-end ratio: it counts your existing debt payments and the new housing payment together. It is a ceiling, not a target. If cash runs out first, your actual payment lands below this and the DTI setting never binds.
4. What your cash allows
Down payment and closing costs are different things. The down payment is equity you put into the home; closing costs are fees charged on the loan. Both are due on the same day, which is why they are added together as cash to close:
down = dp% x price loan = price - down = price x (1 - dp%) closing = cc% x loan = price x cc% x (1 - dp%) cash to close = price x [ dp% + cc% x (1 - dp%) ] so max price = cash available / [ dp% + cc% x (1 - dp%) ]
At 20% down and 2.5% closing costs that bracket is 0.20 + 0.025 x 0.80 = 0.2200, so $90,000 buys at most $409,091.
5. Putting them together
Because property tax, mortgage insurance and closing costs all scale with the price, the constraint is circular, with no single formula to rearrange. The tool solves it by searching prices until it finds the ceiling. See debt-to-income and PITI for what goes into each figure.
Educational estimates only. Not financial, tax, or lending advice. Every rate here is an example you enter, never a live quote or an offer. Verify loan terms, closing costs, property taxes, insurance and mortgage insurance with qualified providers before deciding.
It depends on whose limit you use, and lender maximums sit well above the planning benchmark.
Lenders use the same debt-to-income ratio as this calculator, with higher ceilings. To see your own ratios, with each debt counted the way a lender counts it, use the debt-to-income calculator. Fannie Mae’s Selling Guide caps total DTI at 36% on a manually underwritten loan, allows up to 45% when the borrower meets its credit score and reserve requirements, and allows 50% on loans approved through its Desktop Underwriter system. The standard ratios for an FHA loan under HUD Handbook 4000.1 are 31% for housing and 43% for total debt on a manually underwritten loan. Automated approvals and documented compensating factors such as cash reserves can allow higher, so confirm the current limit with your lender.
Take one household: $140,000 of income, $650 a month of other debts, $90,000 in cash, 20% down and a 6.5% rate. The monthly figure is the all-in housing payment (PITI), not principal and interest alone.
| Limit | Monthly housing allowed | Highest price on income | Loan at 20% down |
|---|---|---|---|
| 28/36 planning benchmark | $3,267 | $521,500 | $417,200 |
| FHA standard, 31/43 | $3,617 | $580,000 | $464,000 |
| Fannie Mae manual cap, 45% | $4,600 | $745,000 | $596,000 |
| Fannie Mae DU cap, 50% | $5,183 | $842,500 | $674,000 |
Figures use this calculator's default property tax, insurance and closing cost settings. A lender limit is the most a lender will allow; your credit score, reserves and the lender's own rules set the actual figure.
The income limit rises from $521,500 to $842,500 down the table, but this buyer can’t reach any of those prices. $90,000 covers 20% down plus closing costs only up to $409,000, so cash sets the ceiling at every DTI limit. A smaller down payment would raise the price, but you would pay PMI on a larger loan. The calculator shows both limits and which one is binding.
Being approved at 50% doesn’t mean you can carry 50%, since that share of gross income can be most of your take-home pay. A prequalification or preapproval letter shows roughly what a lender may lend under its own assumptions, and the CFPB notes that neither one commits the lender to a loan. To see what any of these loan amounts costs each month, run it through the mortgage calculator.
It tests whether you can carry a payment, which is a different question from whether you will be comfortable with it.
Debt-to-income divides your total monthly debt payments by your gross monthly income. There are two versions: the front-end ratio counts housing alone, and the back-end ratio counts housing plus car loans, student loans and minimum credit card payments.
| Back-end DTI | How it is generally viewed | What it feels like |
|---|---|---|
| Under 28% | Conservative | Substantial room for saving and surprises |
| 28%–36% | Widely used personal benchmark | Comfortable for most stable incomes |
| 36%–43% | Frequently approved | Workable, with a thinner cushion |
| 43%–50% | Approved with compensating factors | Tight; vulnerable to income changes |
| Above 50% | Difficult on conventional products | Little margin for anything unexpected |
General guidance, not underwriting rules. Automated underwriting weighs reserves, credit score and loan-to-value alongside DTI, and thresholds vary by product.
Gross income is what the ratio uses, but net income is what pays the bill. A 43% DTI on gross income can be well over half of take-home pay once tax, retirement contributions and health premiums come out, which is why many approved buyers end up feeling squeezed.
Closing costs are separate from the down payment, and they are not small.
Purchase closing costs commonly run 2% to 5% of the loan amount, covering origination, appraisal, title insurance, recording fees and prepaid taxes and insurance. On a $400,000 loan that is $8,000 to $20,000 on top of the down payment.
The calculator reports both cash needed at closing and cash remaining afterwards, because those measure different risks. Closing with nothing left means any early repair, appliance failure or income gap goes onto a credit card. A common rule of thumb is to keep several months of housing costs in reserve after closing, and lenders often require reserves for the same reason.
Putting down less than 20% usually triggers PMI, which the calculator estimates automatically once the loan exceeds 80% of the price. On conventional loans PMI is temporary: you can request cancellation at 80% LTV, and the servicer must end it at 78%.
The monthly figure leaves these out, and they are real costs.
The monthly figure covers PITI (principal, interest, property tax and homeowners insurance) plus mortgage insurance and HOA dues. Homeownership costs more than that:
Setting your comfort level a few points below what a lender would approve leaves room for most of these. For free, independent help, HUD-approved housing counseling agencies and the CFPB’s Owning a Home guides are both worth using.