How much house can I afford on my salary?

A common guideline is to spend no more than 28% of your gross monthly income on housing (front-end DTI) and no more than 43% on all debts combined (back-end DTI). Use this calculator with your actual numbers for a personalized estimate.

What is debt-to-income ratio (DTI)?

DTI is your total monthly debt payments divided by your gross monthly income. Lenders use front-end DTI (housing only) and back-end DTI (all debts) to evaluate mortgage applications. Most conventional loans require back-end DTI under 43–45%.

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a complete monthly mortgage payment. Some loans also add PMI (private mortgage insurance) and HOA fees.

How much should my down payment be?

20% down avoids PMI and results in a lower monthly payment. However, many loans allow 3–10% down. A larger down payment reduces your loan amount and total interest paid.

House Affordability Calculator

Find out how much house you can afford based on your income, debts, down payment, and debt-to-income ratio targets.

Affordability Approach

Housing ≤ 28% of income · All debts ≤ 43% of income

Annual Household Income

Monthly Debts (car, student, etc.)

Down Payment

Interest Rate

Loan Term

Property Tax Rate

Annual Homeowners Insurance

Monthly HOA

Monthly PMI

Estimated Affordable Home Price

$275,857.18

Limited by front-end DTI · Loan amount $235,857.18

Estimated Monthly Housing Payment

Principal & Interest: $1,490.78
Property Tax: $275.86
Homeowners Insurance: $100.00
Total Monthly Housing: $1,866.63

Debt-to-Income Ratios

Monthly Income: $6,666.67
Front-End DTI (housing / income): 28.0%
Back-End DTI (all debts / income): 32.5%

This is an estimate based on income and DTI limits. Actual mortgage qualification depends on your credit score, employment history, assets, and lender guidelines. Consult a licensed mortgage professional.

Disclaimer: This calculator provides estimates for informational purposes only. Actual mortgage qualification depends on your lender, credit score, loan type, and other factors. Consult a licensed mortgage professional before making real estate decisions.

How House Affordability Is Calculated

Lenders look at two ratios: front-end DTI (housing payment ÷ income) and back-end DTI (all debts ÷ income). Your maximum home price is the price where your estimated monthly PITI payment stays within both limits, given your down payment and current interest rates.

DTI Targets Explained

Conservative (28/36): housing ≤ 28%, all debts ≤ 36%. Standard (28/43): used by most conventional loans. Aggressive (36/50): used by FHA and some other programs. A lower DTI means more flexibility and better loan terms.

What Is PMI and When Do I Pay It?

Private Mortgage Insurance (PMI) protects the lender if you default. It is typically required when your down payment is less than 20% of the home price. PMI usually costs 0.5–1.5% of the loan amount per year (about $83–$250/month on a $200,000 loan) and can be removed once you reach 20% equity.

Frequently Asked Questions

: A common guideline is to spend no more than 28% of your gross monthly income on housing (front-end DTI) and no more than 43% on all debts combined (back-end DTI). Use this calculator with your actual numbers for a personalized estimate.
: DTI is your total monthly debt payments divided by your gross monthly income. Lenders use front-end DTI (housing only) and back-end DTI (all debts) to evaluate mortgage applications. Most conventional loans require back-end DTI under 43–45%.
: PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a complete monthly mortgage payment. Some loans also add PMI (private mortgage insurance) and HOA fees.
: 20% down avoids PMI and results in a lower monthly payment. However, many loans allow 3–10% down. A larger down payment reduces your loan amount and total interest paid.

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