Home buying · Free calculator
Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Get a realistic budget before you start house hunting.
Max home price · DTI ratio · PMI · Payment breakdown
01 / Set your scenario
Your inputs
Enter your values, then calculate your estimate.
Try an example
02 / Review your estimate
Estimated results
Change the inputs to explore a different scenario.
How your max home price changes under different lender DTI limits, using your current income, debts, down payment and rate.
How your max home price, PMI, and monthly payment change as your down payment percentage changes, at your current DTI limits.
| Down % | Home price | Loan amount | Down payment | PMI | Monthly payment |
|---|
Monthly schedule (on max loan amount)
| # | Payment | Principal | Interest | Balance |
|---|
Annual summary
| Year | Principal | Interest | Cum. interest | Balance |
|---|
Independent verification of the affordability solve and payment formulas.
How the Home Affordability Calculator Works
This calculator estimates the maximum home price you can afford by working backward from two debt-to-income (DTI) limits: a front-end ratio that caps your housing payment alone, and a back-end ratio that caps your housing payment plus all other monthly debts. Whichever limit is more restrictive determines your maximum affordable monthly payment.
That maximum payment is then converted into a home price, accounting for principal and interest on the loan, property tax, home insurance, HOA dues, and private mortgage insurance (PMI) if your down payment is below 20%. As a result, two buyers with the same income can afford very different homes depending on their debts, down payment, and local tax and insurance costs.
When to Recalculate
Recalculate whenever your income or debts change, before increasing a down payment, or when comparing lenders with different DTI limits. Use the tabs above to see how DTI presets and down payment size shift what you can afford.
Tips for using a home affordability calculator
Know which DTI limit actually binds you
If you carry a car loan or student debt, the back-end ratio often caps you before the front-end ratio does. Check the DTI Scenarios tab to see which one is limiting your max home price.
20% down isn't required, but it removes PMI
Putting down less than 20% usually adds monthly PMI on top of principal, interest, tax and insurance. Use the Down Payment tab to see the payment jump right at the 20% mark.
Property tax and insurance add up fast
In many areas these can add 10-20% on top of principal and interest. Enter accurate local rates in Advanced options rather than leaving the defaults.
Affordable and comfortable aren't the same thing
The maximum a lender approves is a ceiling, not a target. Many buyers choose a home price below their calculated maximum to keep a cushion for savings and unexpected costs.
Don't forget closing costs
Closing costs are separate cash needed on top of your down payment, typically a few percent of the home price. Set a realistic estimate in Advanced options to see total cash required.
A shorter term raises the payment but affords less house
A 15-year loan builds equity faster and costs less interest overall, but the higher monthly payment lowers the maximum home price your DTI ratios allow. Try different terms above to compare.
Frequently asked questions
How is home affordability calculated?
Lenders cap your monthly housing payment using a front-end DTI ratio, and cap total monthly debts using a back-end DTI ratio. The lower of the two limits sets your maximum housing payment, which is converted into a maximum home price given your down payment and rate.
What is a good debt-to-income ratio for buying a home?
Conventional lenders often prefer around 28% front-end and 36% back-end, though many approve higher. FHA loans commonly allow up to roughly 31% front-end and 43% back-end.
What is PMI and when do I have to pay it?
Private mortgage insurance is typically required on conventional loans when the down payment is below 20% of the home price. It's charged as a percentage of the loan balance per year and added to the monthly payment.
Does a bigger down payment always help?
It lowers the loan amount, can remove PMI once you reach 20% equity, and cuts total interest — but it also means more cash needed upfront, so the right size balances affordability against savings.
What counts as a monthly debt payment in the DTI ratio?
Recurring obligations like car loans, student loans, minimum credit card payments and personal loans typically count. Everyday living expenses like groceries or utilities don't.
How much cash do I need at closing?
Beyond the down payment, buyers typically pay closing costs of roughly 2-5% of the home price. Enter an estimated percentage in Advanced options to see the total cash needed.
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Sources & further reading
CFPB – What is a debt-to-income ratio?
The Consumer Financial Protection Bureau explains how DTI ratios are calculated and used in mortgage underwriting.
Investopedia – Private Mortgage Insurance (PMI)
A reference explainer on when PMI is required, how it's priced, and how to remove it later.
HUD – Buying a Home
Official U.S. government guidance on the home-buying process, including affordability and loan programs.
Disclaimer
This calculator is provided for general informational and educational purposes only and does not constitute financial or legal advice. It is not affiliated with, endorsed by, or a substitute for consultation with your lender or a licensed financial advisor.
All figures — including maximum home price, loan amount, DTI ratios, PMI, and monthly payment — are approximations based on the numbers you enter and standard affordability formulas. They do not account for lender-specific underwriting rules, credit score, promotional terms, or local tax and insurance variation.
FinToku is not a lender and does not broker, originate, or guarantee financing. Use of this tool does not create any financial relationship between you and FinToku. You are solely responsible for decisions made using these estimates.
Free tool by FinToku · Results are indicative. Consult your lender for exact figures.
Method, assumptions and result checks
What this tool covers: Find out how much house you can afford based on your income, debts, and down payment. Get a realistic budget before you start house hunting.
Review the calculator’s worked examples, formulas, timing and exclusions in the sections below. Input units and payment frequency matter. A displayed APR is not necessarily the interest rate used by the model. Tax, investment, daily-interest and specialist loan models have different rules.
Interface and accessibility reviewed November 8, 2026. This is not a certification of current rates, tax tables or every financial statement. Verify important results against actual documents.
Monthly loan formulas and worked examples · Build questions for your lender
Find out how much house you can afford based on your income, debts, and down payment. Get a realistic budget before you start house hunting.
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