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Loans

Home Affordability Calculator

Find the maximum home price your income and debts can comfortably support.

Updated June 2026 · Editorial standards

Your finances

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Max home price
$353,461
Monthly payment· incl. tax & insurance
$2,333.33
Loan amount
$293,461
Back-end DTI
34%

On a $100,000 income you can afford up to $353,461 — a $293,461 loan with $60,000 down (17%). Your monthly payment would be $2,333.33 including tax and insurance.Your back-end DTI is 34% (all debts ÷ income). Most lenders require this below 36%. A down payment below 20% usually requires private mortgage insurance (PMI).

Down payment vs loan

Debt-to-income ratio

ComfortableOver limit
Acceptable34% back-end DTI

Front-end (housing only): 28%. Back-end (all debts): 34%. Lender limit: 36%.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the home affordability calculator?

In short

Lenders use two DTI rules: front-end (housing costs ÷ gross income) should stay below 28%, and back-end (all debts ÷ gross income) below 36–43%. On a $100,000 income with $500/month in existing debts and a 6.5% mortgage rate, you can typically afford a $350,000–$400,000 home with a standard down payment.

This home affordability calculator estimates the maximum home price you can qualify for based on your income, debts, down payment, interest rate, property tax, insurance, and standard lender DTI limits.

How to use this calculator

  1. 1Enter your annual gross household income.
  2. 2Enter all existing monthly debt payments (car, student loans, credit cards — not rent).
  3. 3Enter your down payment.
  4. 4Set the mortgage rate, loan term, property tax rate, and annual insurance.
  5. 5Adjust the front-end and back-end DTI limits if you have a specific loan type in mind.

The formula

PITImax=income12×DTIf
pricemax=loanmax+down
Max PITI = income/12 × front-end limit. Max all-debt payment = income/12 × back-end limit. Max loan from back-end = (max all-debt − existing debts − tax/insurance) ÷ mortgage factor. Home price = min(both limits) + down payment.
PITI
— Principal, Interest, Tax, Insurance (monthly)
DTI_f
— Front-end DTI limit (housing ÷ income)
DTI_b
— Back-end DTI limit (all debts ÷ income)
r
— Monthly mortgage rate (annual ÷ 12)
n
— Number of payments (term × 12)

Worked example

The scenario

$100,000 income, $500/month debts, $60,000 down, 6.5% rate, 30-year term, 1.2% tax, $1,500/yr insurance.

gives

The result

Max monthly PITI (28%) = $2,333. After tax ($400/mo) and insurance ($125/mo) that leaves $1,808 for P&I. Max loan ≈ $285,000. Home price ≈ $345,000.

Common use cases

  • Setting a home search budget before talking to a realtor
  • Understanding how your existing debts reduce buying power
  • Comparing 15-year vs 30-year terms on affordability
  • Seeing the impact of a larger down payment

Limitations & assumptions

  • Does not model PMI (private mortgage insurance) required below 20% down.
  • Property tax uses a flat percentage — actual rates vary by county.
  • HOA fees, utilities, and maintenance are not included.
  • Credit score affects the actual rate you'll receive — this calculator uses a fixed rate.

Frequently asked questions

Conventional lenders typically want your monthly housing payment (PITI) below 28% of gross income (front-end DTI) and all debts combined below 36% (back-end DTI). FHA loans allow 31%/43%. These are guidelines — strong credit scores can qualify above these limits.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.