Home Affordability Calculator

How much house you can afford using front-end and back-end DTI.

Home Affordability Calculator

Generated 10/9/2026

Gross annual household income: 120000
Monthly debt payments: 650
Down payment saved: 60000
Interest rate (APR): 6.75
Loan term: 30
Property tax (per year): 1.1
Insurance (per year): 1800
HOA dues (per month): 0
Front-end DTI limit: 28
Back-end DTI limit: 36

Estimated max home price: $410,550
Max monthly housing payment: $2,800.00
Loan amount: $350,550
Principal and interest: $2,273.66
Front-end limit payment: $2,800.00
Back-end limit payment: $2,950.00

Excludes PMI. If your down payment is under 20%, the real budget is a little lower.

Monthly housing budget

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How to use this tool

Enter gross household income, monthly debts and the down payment you have.
Adjust the DTI limits to match your lender. The common conventional pair is 28 and 36.
The lower of the two limits sets your maximum payment and price.

Formulas

Front-end limit = income/12 x front %. Back-end limit = income/12 x back % - monthly debts.

Max payment = min(front, back). Price = (budget + down x f) / (f + tax/12), where f is the payment factor per dollar borrowed.

Frequently asked questions

What is front-end vs back-end DTI?

Front-end DTI is housing cost divided by gross income. Back-end DTI adds all other monthly debts. Lenders check both.

Which DTI limit do lenders use?

Conventional guidelines often cite 28/36, but approvals up to 43 to 50% back-end exist with strong credit or reserves. Ask your lender for their limits.

Are debts like utilities included?

No. DTI counts credit obligations such as car loans, student loans, minimum card payments and child support, not groceries or utilities.

Should I buy at the maximum?

Not necessarily. The maximum is what a lender may approve, not what fits your life. Compare it with your budget before committing.