Home Affordability Calculator
At 6.71% and a 28/36 DTI cap, a $100,000 household income with no debts buys about $310,000 of home with 10% down. Find out how much house you can afford based on your income, debts, and down payment. Uses the 28/36 rule and Dave Ramsey guidelines.
Your Financial Details
Car loans, student loans, credit cards, etc.
Most lenders use 36% (conservative) to 43% (FHA max)
You Can Afford
Your estimated payment is $2,500/mo.
No PMI. With this loan structure you avoid mortgage insurance entirely — a real saving vs. an FHA or sub-20% conventional loan.
Over 30 years you’ll pay $512,968 in interest — 57% of the total $900K lifetime cost. At today’s 6.71% rate that interest share is typical; it is why rate matters more than any other input.
Rate sensitivity: a +1 point move (to 7.71%) adds ~$262/mo (≈$94,339 over 30 yrs); a −1 point move (to 5.71%) saves ~$251/mo.
Next steps to consider
28/36 Rule Gauge
See what home price different salaries can afford with your current settings
Primary Sources
Rates, limits, and program rules change. Always confirm current figures with the issuing agency.
How to Use the Affordability Calculator
- Step 1: Enter your annual gross income — this is your total pre-tax income from all sources. The calculator uses this to determine your maximum affordable monthly payment.
- Step 2: Enter your monthly debt payments — include car loans, student loans, credit card minimums, and any other recurring obligations. This helps calculate your true borrowing capacity.
- Step 3: Enter your down payment and desired interest rate — a larger down payment reduces your loan amount, while the rate directly affects your monthly payment.
- Step 4: Adjust the loan term and max debt-to-income ratio — choose between 15, 20, or 30 years, and set your DTI target (36% is standard, 43% is FHA max).
- Step 5: Review your results — check the max home price, monthly payment, and the 28/36 rule gauge to see how your housing expense compares to lender guidelines.
What Is Home Affordability?
Home affordability measures how much house you can buy based on your income, debts, down payment, and current interest rates. Lenders use the 28/36 rule to determine the maximum home price you can qualify for.
How Does the Home Affordability Calculator Work?
Our calculator uses your income, monthly debts, down payment, and desired interest rate to compute the maximum home price you can afford. It applies the standard 28/36 debt-to-income rule and Dave Ramsey guidelines to give you a conservative estimate.
Why Use Our Home Affordability Calculator?
- Get an instant, accurate affordability estimate based on your financial situation
- See how different down payments and interest rates affect your buying power
- Understand the 28/36 rule and Dave Ramsey guidelines with clear visual feedback
How Much House Can I Afford? The Rules Explained
The 28% Rule
Your total monthly housing cost (PITI) should not exceed 28% of your gross monthly income. For a $100k salary, that's about $2,333/month max.
The 36% Rule
Your total debt payments (housing + car + student loans + credit cards) should stay below 36% of gross monthly income.
Dave Ramsey Rule
Keep housing costs below 25% of take-home pay (after tax). This is the most conservative approach and builds wealth faster.
Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- Max affordable price = f(income, DTI cap, rate, down payment, tax, insurance). Front-end DTI = housing costs ÷ gross income (28% target); back-end = all debts ÷ income (36-43% cap). Price solved iteratively so PITI + debts stay within both caps.
Assumptions
- 28/36 rule defaults (front 28%, back 36%) — FHA allows up to 57% back-end with compensating factors.
- Tax 1.1%, insurance $120/mo, PMI when under 20% down.
- Rate default 6.71% (PMMS benchmark) — your rate varies by credit and LTV.
Limitations
- Lenders use actual monthly debts (student loans, car, credit cards) — the calculator needs all of them.
- Down payment sources must be documented; gifts and 401k loans count differently.
- Local tax and insurance vary widely — override with your county figures.
Worked Example
- $100,000 income, $500 debts, 6.71%, 10% down: front-end cap ≈ $2,333 housing; back-end cap ≈ $2,500 total — max PITI ≈ $2,000 after debts → supports roughly $310,000 home.
Sources
- CFPB — Owning a home
- Freddie Mac PMMS rate benchmark