Estimate the home price that fits both your monthly budget and the cash you actually have — using the all-in payment, not just principal and interest.
Private by design. Your numbers stay on this device.
Educational estimates only. Not financial, tax, or lending advice.
A widely used personal benchmark keeps total monthly debt — housing plus everything else — at or below 36% of gross monthly income, with housing alone under about 28%. On $140,000 of household income and $650 of existing debt payments, that allows roughly $3,550 per month for all-in housing costs.
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, and the results tell you which one is binding — because more cash and more income fix very different problems.
Note what this is not: 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 — 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.
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%.
Principal and interest is only part of it. Taxes, insurance and fees are stacked here at each affordability band.
Bars above the dashed line exceed your monthly comfort ceiling. Those are shown in red.
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 — there is 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.
A capacity test, not a comfort test — and the difference costs people real money.
Debt-to-income divides your total monthly debt payments by your gross monthly income. Two versions exist: 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. That gap is the single biggest reason 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 — lenders themselves often require reserves for exactly this reason.
Putting down less than 20% usually triggers PMI, which the calculator estimates automatically once the loan exceeds 80% of the price. PMI is not permanent on conventional loans — you can request cancellation at 80% LTV and the servicer must terminate it at 78%.
Being straight about the gaps is more useful than a falsely precise number.
The monthly figure covers principal, interest, property tax, homeowners insurance, mortgage insurance and HOA dues. Homeownership costs more than that:
Setting your comfort setting a few points below what a lender would approve is how most of these get absorbed without drama. For free, independent help, HUD-approved housing counseling agencies and the CFPB’s Owning a Home guides are genuinely good.