House Affordability Calculator Estimate how much home you can afford — with realistic DTI rules, PITI costs, and lender b...

House Affordability Calculator

Estimate how much home you can afford — with realistic DTI rules, PITI costs, and lender benchmarks.

Basic

Detailed

Rent vs. Buy

Annual Gross Income ($)

Monthly Debt Payments ($)

Down Payment (%)

Target DTI (%)

Loan Term (Years) 15 years 30 years

Interest Rate (%)

Estimated Monthly Housing Costs

Property Tax ($/yr)

Home Insurance ($/yr)

HOA ($/mo)

Current Rent ($/mo)

Target Home Price ($)

Appreciation Rate (%)

$0

Affordable Home Price

$0

Max Monthly Payment

$0

Req. Income for $400K

0.00%

Your DTI

Affordability Health Dashboard

How Lenders Determine Affordability

Lenders use the **28/36 Rule** (or variations):

• Front-End DTI (Housing Ratio): ≤28% of gross monthly income on PITI (Principal, Interest, Taxes, Insurance)
• Back-End DTI (Total Debt Ratio): ≤36–43% including car loans, credit cards, student debt

Example: $85,000/year income ($7,083/mo): → Max housing payment: $1,983 (28%) → Max total debt: $2,550 (36%) → Available for other debt: $567/mo

2025 Reality: FHA allows up to 50% DTI with compensating factors; conventional loans typically cap at 45%.

Hidden Costs Most Buyers Forget

💡 Budget for these *after* closing:

• PMI: 0.3–1.5% of loan/year if down <20% (e.g., $150/mo on $250K loan)
• Maintenance: 1% of home value/year (e.g., $3,500/yr on $350K home)
• Closing Costs: 2–5% of purchase price ($7K–$17.5K on $350K home)
• Utilities & Upgrades: $300–$600/mo (vs. $100–$200 as renter)

✅ Pro Tip: Use the **25x Rule** — your home shouldn’t cost more than 2.5–3x your *annual* income. ($85K income → $212K–$255K ideal; $320K max stretch)

2025 U.S. Housing Affordability Snapshot

• Median U.S. Home Price: $420,000 (NAR, Q1 2025)
• Avg. 30-Yr Fixed Rate: 6.8%
• Income Needed for $400K Home (20% down, 36% DTI): ~$95,000
• First-Time Buyer Age: 36 (highest in 40 years)
• Down Payment Sources: 48% savings, 25% parents, 12% 401(k) loan

Good news: In 52% of U.S. counties, median home is still affordable on median income (per NCHS).

How to Use This Calculator

➡️ Basic Mode

Quick estimate using income, debt, and down payment %.

➡️ Detailed Mode

Factor in taxes, insurance, HOA, and your target DTI for precision.

➡️ Rent vs. Buy

Compare long-term costs: equity growth vs. rent inflation + investment returns.

Note: Uses *gross* income (before taxes), not take-home pay.