Find the home price your income and debts support at editable debt-to-income limits. Runs on your device.
The home price you can afford is the price at which the monthly cost of owning it equals the smaller of two budgets: a share of your gross income for housing, and a larger share of your income for housing plus all other debts, minus those debts. The page takes the housing limit (28% by default) times your gross monthly income, and the total debt limit (36% by default) times that income minus your other monthly debt payments, and keeps the smaller. The housing cost is the loan payment, property tax as a percent of the price, insurance divided by 12 and any HOA fee. Because tax depends on the price, the page solves for the price directly: (budget − insurance ÷ 12 − HOA + down payment × k) ÷ (k + tax ÷ 1,200), where k is the monthly payment on 1 borrowed.
The page opens on a gross income of 90,000 a year, which is 7,500 a month, with 500 of other debt payments and a 40,000 down payment. The loan is at 6.5% over 30 years, the property tax is 1% of the price a year and insurance is 1,200 a year. The housing limit gives 28% × 7,500 = 2,100 and the debt limit gives 36% × 7,500 − 500 = 2,200, so the budget is 2,100. That supports a price of 314,903.96: a loan of 274,903.96 with a payment of 1,737.58, plus 262.42 of tax and 100.00 of insurance. Raise the other debts to 1,000 and the debt limit becomes 1,700, which is now the smaller one, so the price falls to 258,991.29. The result tells you which limit set the budget.
The 28/36 guideline says housing should take no more than 28% of gross income and housing plus other debts no more than 36%. Lenders such as Chase describe it as a budgeting guideline rather than a rule every lender applies, and the limits differ by country, loan type and lender. That is why both are boxes you can edit: type 31 and 43, for example, and the price rises to 346,354.84 on the opening example. The table under the result repeats the same budget at rates 1 point below to 2 points above yours, because the rate moves the price more than most inputs: at 7.5% the opening example supports 291,315.84 and at 5.5% it supports 342,042.58.
The page uses gross income, so it does not look at take-home pay, savings, childcare or other costs that a lender's ratio ignores. It has no mortgage insurance, closing costs, repairs or utilities, and no country-specific rules. Put costs such as mortgage insurance into the HOA box as a monthly amount. If your down payment is big enough to cover the price that fits the budget, the page shows a price with no loan. A price that fits a ratio is not the same as a price that is comfortable to pay, so check it against your own budget. Nothing you type is stored or sent. This is an estimate, not financial advice.
With 500 of other monthly debts, a 40,000 down payment, 6.5% over 30 years, 1% property tax and 1,200 insurance, the page gives 314,903.96 at the 28% and 36% limits. Change any of these and the price follows as you type.
Housing should take at most 28% of gross income, and housing plus other debts at most 36%. On 7,500 of monthly income that is 2,100 and 2,700 before other debts. It is a common US guideline, and lenders and countries use other limits, so both numbers can be edited.
Gross income, before tax, because the ratios are quoted on gross income. If you type a net figure, the price will come out lower than the guideline gives. Choose Per month or Per year to match how you know your income.
The monthly budget stays fixed, so a higher rate leaves less of it for the loan. In the opening example 5.5% supports 342,042.58, 6.5% supports 314,903.96 and 7.5% supports 291,315.84. The table shows these side by side.
Then more of the price is paid in cash and the loan is smaller, so the same budget reaches a higher price. If the down payment alone covers the price that fits the budget, the loan is 0.00 and the price is set by tax, insurance and fees. A down payment of 3,000,000 gives a price of 2,400,000 on the opening budget.
The numbers you type are processed in your browser and not uploaded. Nothing is saved when you close the page. The page counts visits with Google Analytics, and the amounts you type are not part of that.