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Knowing how much house you can afford prevents overextending your finances. This calculator uses your income, existing debts, and down payment to estimate your maximum affordable home price while keeping your debt-to-income ratio in check.

Home Affordability Calculator

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Maximum debt-to-income ratio

Results

Max Home Price

$310,000.00

Max Loan Amount

$260,000.00

Estimated Monthly Payment

$2,043.79

Monthly Income

$7,083.33

Current DTI

7.06%

Down Payment %

16.13%

Visualization

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How It Works

We calculate the maximum mortgage payment that keeps your total debt-to-income (DTI) ratio below the threshold (typically 36%). Then we reverse-engineer the maximum loan amount from that payment, adding your down payment for the total home price.

Formula

Max Housing Payment = (Monthly Income × Max DTI%) - Monthly Debts; Max Loan = reverse PMT formula; Max Home Price = Max Loan + Down Payment

Assumptions

  • DTI limit of 36% (adjustable)
  • Property tax estimated at 1.2% of home value
  • Insurance estimated at 0.35% of home value
  • Fixed interest rate throughout loan term
This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Frequently Asked Questions

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