Mortgage Affordability Calculator (USA)

Estimate the maximum home price you may afford using income, debts (DTI), down payment, taxes, insurance, HOA, and PMI assumptions. Includes charts and a clean monthly breakdown.

Inputs

Before taxes. Combine all stable household income.
Leave 0 if not applicable.
Car loans, student loans, minimum cards, etc. (not housing).
Down payment affects loan amount and PMI.
Used for P&I payment estimate.
Typical fixed-rate terms.
If you don’t know it, use a planning tax rate.
Rate example: 1.20 means 1.20%/yr.
If unknown, keep the default.
Leave 0 if none.
PMI is commonly required below ~20% down.
Planning value. Real PMI depends on credit, LTV, and lender.
Housing costs / gross monthly income.
Housing + other debts / gross monthly income.
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Results

Maximum home price (estimate)
$0
Monthly housing (PITI+HOA+PMI): $0
Max monthly P&I allowed (estimate)
$0
Rate: 0% · Term: —
DTI usage (at max price)
0% / 0%
Front / Back
DTI gauge
Front-end DTI 0% / 0%
Back-end DTI 0% / 0%

This is a planning estimate. Actual approvals depend on credit, reserves, lender overlays, and documentation.

Monthly breakdownAmount
Principal & interest (P&I)$0
Property tax$0
Homeowners insurance$0
HOA$0
PMI$0
Total housing (PITI+HOA+PMI)$0

Note: If you enter property tax as a rate, the tool estimates tax from the calculated home price. PMI is estimated from the loan amount and the PMI rate (if enabled).

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Visual

Monthly housing cost mix (at max price)
Sensitivity: max home price vs rate

How to use

  1. Enter household income, monthly debts, down payment, and an expected mortgage rate.
  2. Choose your loan term and set property tax (rate or annual), insurance, HOA, and PMI settings.
  3. Set DTI limits (front-end and back-end) and click Calculate.
  4. Review the monthly breakdown and the charts. Adjust assumptions until the scenario feels realistic.
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What mortgage affordability means in the US

Mortgage affordability is a planning estimate of the maximum home price you might reasonably target based on your gross income, monthly debts, and expected housing costs. In the US, lenders often evaluate affordability using debt-to-income ratios (DTI). A front-end ratio compares housing costs to gross monthly income, while a back-end ratio compares all monthly debts (including housing) to gross monthly income.

Housing costs are typically estimated as PITI: principal and interest (P&I), property taxes, and homeowners insurance. Depending on the property and loan, your budget may also include HOA dues and PMI (private mortgage insurance). PMI is often required when the down payment is below roughly 20% and can materially change the monthly payment.

This calculator combines these parts into a single estimate. It solves for a home price that fits both a front-end DTI limit (housing only) and a back-end DTI limit (housing plus other debts). Because property taxes and PMI can depend on the home price and loan amount, the calculator uses an iterative approach to find a maximum value under your assumptions.

Be careful with the inputs that vary most by location: property taxes and homeowners insurance. Even within the same state, taxes can differ by county and neighborhood. If you have a specific listing or ZIP code, replace the planning tax rate with a more accurate estimate. Likewise, insurance can vary based on replacement cost, hazards, and coverage levels.

Finally, affordability isn’t only about DTI. Lenders may consider credit score, cash reserves, job history, and the type of loan. Your personal comfort level matters too: an “approved” payment may still feel tight if it limits savings or makes your budget fragile. Use this estimate to narrow your search range, then validate the final numbers with a lender and real quotes.

FAQ

What is the difference between front-end and back-end DTI?
Front-end DTI compares housing costs to gross monthly income. Back-end DTI includes housing plus other monthly debts.
Does this include PMI automatically?
If PMI is set to Auto, the calculator applies PMI when the down payment is below 20% and estimates PMI from your PMI rate and loan amount.
Should I enter property tax as a rate or an annual amount?
Use annual tax if you know it for a target area or listing. Otherwise, use a planning tax rate so taxes scale with the calculated home price.
Is this an approval guarantee?
No. It’s a planning estimate. Approvals depend on lender rules, credit, reserves, documentation, and local costs.