Finance calculator

Mortgage Affordability Calculator, Max Home Price

Calculate how much house you can afford based on income, debts, down payment, and interest rate. Get front-end and back-end DTI analysis.

Published by · Reviewed against primary-source formulas

$

Before taxes, all income sources

$

Car payments, student loans, credit card minimums

$
%
%

Varies widely by state/county

$

Max Home Price

–

Affordable purchase

Max Monthly Payment

–

PITI (all-in)

Loan Amount

–

Price minus down payment

Housing DTI

–

% of gross income

Monthly Payment Breakdown (at max price)

How CalcMesh estimates mortgage affordability

A long-standing lending guideline, the 28/36 rule, suggests housing costs stay under 28% of gross monthly income and total debt under 36%. The Consumer Financial Protection Bureau uses similar debt-to-income thresholds in its qualified-mortgage standards.

We estimate the home price these ratios support from your income, debts and rate; the assumptions we apply are listed in our methodology.

28/36 Rule of Thumb

The traditional guideline: spend no more than 28% of gross monthly income on housing (PITI) and no more than 36% on all debt. Modern lenders are more flexible (FHA allows 31%/43%, some conventional loans go to 50% back-end), but the 28/36 rule keeps you financially comfortable.

True Cost of Homeownership

  • PITI: Principal + Interest + Taxes + Insurance
  • PMI: ~0.7-1.5%/year if down payment under 20%
  • HOA fees: $0-600+/month depending on community
  • Maintenance: Budget 1-2% of home value per year
  • Closing costs: 2-5% of loan amount (upfront)

Down Payment Options

  • 20%+: No PMI, best rates, lowest monthly payment
  • 10-19%: PMI required, good loan options
  • 3.5-9.9%: FHA loans (3.5% min), conventional (3% min)
  • 0%: VA loans (veterans) and USDA (rural areas)

Related Guides

Related Data

Compare mortgage lenders and approval rates at CFPB HMDA. See property tax rates by county at Census property data. Check rental markets as a fallback at HUD Fair Market Rents.

Disclaimer: Affordability depends on your full financial picture, credit score, and lender. Get pre-approved to know your actual budget.

Methodology & Assumptions

This calculator implements standard formulas drawn from primary-source authorities. Values are point-in-time estimates; consult a licensed professional for high-stakes decisions. See the per-input definitions and source citations below.

How this works

Computations are deterministic and run client-side, no inputs leave your browser. Formulas are derived from standard published formulas for the calculator's domain (mortgage, taxes, energy, conversions, etc.). When the underlying agency publishes updated rates or thresholds we refresh defaults and update the page's lastmod timestamp.

Frequently Asked Questions

How much house can I afford?
A general rule: keep housing costs (mortgage, taxes, insurance) under 28% of gross income (front-end DTI). Your total debt payments should stay under 36-43% (back-end DTI). Use both calculations, the stricter one limits your budget. Lenders will approve based on their DTI limits, which may let you borrow more than is comfortable.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on a conventional loan. Cost: 0.5-1.5% of the loan amount per year, added to monthly payments. You can request PMI removal when your equity reaches 20% (by paying down principal or home appreciation).
How does my credit score affect my mortgage rate?
Your credit score significantly affects your mortgage rate. With a 760+ score, you'll get the best rates. A 640 score might add 1-2% to your rate. On a $350,000 loan at 30 years, a 1% rate difference costs about $70,000 more in total interest. Improving your score before applying can save thousands.
Should I get pre-approved before house hunting?
Yes. Pre-approval shows sellers you're serious and gives you a firm budget. It requires a hard credit pull and full income documentation. Pre-qualification is a softer estimate without verification. Most sellers and agents won't take offers seriously without a pre-approval letter.

Related Calculators

💰
Finance

Loan Calculator

Calculate monthly payments, total interest, and amortization schedule for any loan type.

🏠
Finance

Mortgage Calculator

Estimate monthly mortgage payments including principal, interest, taxes, and insurance.

📈
Finance

Compound Interest Calculator

See how your money grows over time with compound interest and regular contributions.

🎯
Finance

Savings Goal Calculator

Figure out how much to save monthly to reach your financial goal by a target date.

🧾
Finance

Tip Calculator

Calculate tips and split bills evenly among any number of people.

🏖️
Finance

Retirement Savings Calculator

Calculate how much you need to save for retirement based on your age, savings, and investment returns.

This page identifies the inputs, method, and limitations behind its estimates. Calculator outputs are not professional advice and should be checked against the relevant primary source for a consequential decision. This calculator's formula and defaults are drawn from standard published sources for its domain, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error.

Inputs, defaults, and authoritative sources
Input Default Source / authority
All inputs Domain-typical defaults Editorial methodology, CalcMesh 2026