Last revised: November 6, 2026 · By the FintechZoom Markets Desk, reviewed under our editorial policy
Mortgage affordability calculator: how much house can you afford?
This mortgage affordability calculator finds the highest home price your income supports under the debt-to-income (DTI) limit you pick: the 28/36 guideline, Fannie Mae limits of 36, 45 or 50 percent total DTI, FHA standard ratios of 31/43 or the VA standard of 41 percent. It opens with Freddie Mac's 30-year average rate of 7.18 percent for the week of November 5, 2026 and counts property tax, insurance, HOA dues and PMI in the monthly payment.
What changes your maximum price
Each card changes one input and solves again. The +$10,000 card adds cash to the dollar down payment of your result and rechecks PMI.
Maximum price under each published DTI limit
Same income, debts, rate, down payment and costs; only the DTI limit changes. The selected limit is in blue.
DTI limits used in this calculator
Lenders compare two ratios with your gross monthly income. The front-end ratio counts housing costs only. The back-end ratio adds every other monthly debt payment. The CFPB says the limits differ by loan type and lender. The presets use these published figures, read on November 6, 2026:
| Preset | Housing ratio | Total DTI | Source |
|---|---|---|---|
| Conventional guideline 28/36 | 28 percent (planning guideline) | 36 percent | Fannie Mae B3-6-02: 36 percent maximum for manually underwritten loans |
| Fannie Mae up to 45 total | None | 45 percent | Fannie Mae B3-6-02: above 36 only with credit score and reserve requirements |
| Fannie Mae DU up to 50 total | None | 50 percent | Fannie Mae B3-6-02: maximum for Desktop Underwriter casefiles |
| FHA standard 31/43 | 31 percent | 43 percent | HUD Mortgagee Letter 2014-02: manual underwriting, no compensating factors |
| VA 41 total | None | 41 percent | 38 CFR 36.4340(d): "The standard is 41 percent or less" |
| Custom | You choose, 1 to 60 percent | You choose, 1 to 60 percent | Your own limits, for example 25/33 if you want a lower payment than any published limit |
Housing cost here means principal, interest, property tax, homeowners insurance, HOA dues and mortgage insurance. VA counts the same items, plus special assessments, under 38 CFR 36.4340(d).
How this calculator works
Gross monthly income (GMI) = annual income ÷ 12
Housing budget = the smaller of (housing ratio × GMI) and (total DTI × GMI − monthly debts). Presets with no housing ratio use the total DTI only.
Loan = price − down payment; principal and interest = loan × r ÷ (1 − (1 + r)−n), with r = annual rate ÷ 12 and n = years × 12 (at 0 percent: loan ÷ n)
Property tax and insurance in percent mode = price × rate ÷ 12; in dollar mode = yearly amount ÷ 12
PMI = loan × PMI rate ÷ 12, only when the down payment is under 20 percent of the price
Maximum price = the highest price whose principal, interest, tax, insurance, HOA dues and mortgage insurance fit the housing budget
The calculator finds the maximum price by bisection: it tests a price, checks whether the monthly cost fits the budget, and halves the gap 200 times. Each test price gets its own loan-to-value ratio, so with a dollar down payment PMI switches on only at prices where that down payment is under 20 percent. Exactly 20 percent down adds no PMI. If your debts already use the total DTI limit, or fixed costs exceed the housing budget, the maximum price is $0 and the result says why.
Worked example
The calculator opens with this household. Income is $120,000 a year with $500 of monthly debt payments. The rate is 7.18 percent for 30 years (Freddie Mac average for the week of November 5, 2026), with 10 percent down, property tax of 1.2 percent and insurance of 0.4 percent of the price a year, no HOA dues, PMI at 0.8 percent of the loan, and the 28/36 guideline.
- GMI is $10,000. The housing limit is 28 percent, or $2,800. The total limit is 36 percent, or $3,600 minus $500 of debts, which leaves $3,100. The housing limit is tighter, so the budget is $2,800.
- The maximum price is $348,682. The down payment is $34,868 and the loan is $313,814, a loan-to-value ratio of 90 percent.
- Monthly cost: principal and interest $2,125.88, property tax $348.68, insurance $116.23 and PMI $209.21 (0.8 percent of $313,814 ÷ 12), for a total of $2,800.00.
- Front-end DTI is 28.0 percent and back-end DTI is 33.0 percent, inside Fannie Mae's 36 percent manual underwriting maximum. $6,700 of monthly income is left after housing and debts.
| Change from the example | Maximum price | Difference |
|---|---|---|
| Example as shown | $348,682 | None |
| Annual income +10 percent ($132,000) | $383,550 | +$34,868 |
| Interest rate 0.5 point lower (6.68 percent) | $362,277 | +$13,595 |
| $10,000 more down ($44,868 in total) | $357,162 | +$8,480 |
| Monthly debt $250 lower ($250) | $348,682 | None: the housing ratio is the binding limit |
With 20 percent down instead of 10, PMI drops out and the maximum price rises to $414,642. Under FHA standard ratios (31/43) the same household reaches $386,040, and under the VA 41 percent limit with no PMI, $484,506.
What each input means
- Annual gross household income: pay before tax for everyone who will sign the loan.
- Monthly debt payments: required payments on car loans, student loans, personal loans and the minimum due on credit cards. Leave out rent you will stop paying.
- Interest rate and loan term: the note rate and length of a fixed-rate loan. The default rate is a national weekly average from Freddie Mac PMMS, not a quote.
- Down payment: a percent of the price, or a fixed dollar amount. In dollar mode the percent changes with the price.
- DTI limit: one of the presets in the table above, or your own housing and total ratios.
- Property tax and insurance: a percent of the price per year, or a yearly dollar amount. The defaults are example values only.
- HOA dues: the monthly association fee.
- Mortgage insurance: automatic PMI at your rate below 20 percent down, a monthly amount you enter (use this for FHA mortgage insurance), or none.
The PMI assumption
The CFPB says private mortgage insurance usually applies to a conventional loan when the down payment is under 20 percent of the purchase price, and it publishes no rate. No agency sets one: insurers price it by credit score, loan-to-value ratio and coverage. The calculator's default is 0.8 percent of the loan a year. Fannie Mae says PMI typically ranged from 0.58 to 1.86 percent a year in 2022, and Freddie Mac says $30 to $70 a month for every $100,000 borrowed (0.36 to 0.84 percent a year). The rate field is visible and editable, and the results line under the breakdown shows the rate and loan amount used. VA loans carry no PMI (va.gov), so the VA preset adds none.
What the DTI band means
The band under the price compares your back-end ratio with the limits in Fannie Mae Selling Guide B3-6-02:
- Within 36 percent: at or below the maximum for manually underwritten loans.
- 36 to 45 percent: allowed only with Fannie Mae's credit score and reserve requirements.
- 45 to 50 percent: allowed only for loans underwritten through Desktop Underwriter.
- Above 50 percent: over the Desktop Underwriter maximum.
The band does not measure how comfortable a payment will feel and it is not an approval odds score. The old version of this page showed a "confidence" label that depended on the preset name; it was replaced on November 6, 2026.
Limitations
- Closing costs, cash reserves, credit score pricing and lender overlays are not modeled.
- FHA upfront and annual mortgage insurance premiums and the VA funding fee are not calculated. Enter FHA premiums as a manual monthly amount, and use the VA mortgage calculator for the funding fee.
- FHA ratios above 31/43 with compensating factors and VA residual income are not checked.
- Fixed-rate loans only. Taxes, insurance and dues are held flat.
- US loans only. Loan limits, including conforming and FHA county limits, are not checked.
Mortgage affordability calculator FAQs
How much house can I afford on a $120,000 salary?
With $500 of monthly debt payments, the Freddie Mac 30-year average rate of 7.18 percent for the week of November 5, 2026, 10 percent down, property tax of 1.2 percent and insurance of 0.4 percent of the price a year, PMI of 0.8 percent of the loan a year and the 28/36 guideline, the calculator gives a maximum price of $348,682. The 28 percent housing limit allows $2,800 a month: $2,125.88 of principal and interest, $348.68 of tax, $116.23 of insurance and $209.21 of PMI. Change any of those inputs and the price changes.
What is the 28/36 rule?
It is a planning guideline: housing costs up to 28 percent of gross monthly income and all monthly debt payments, housing included, up to 36 percent. The 36 percent part matches the Fannie Mae Selling Guide, section B3-6-02 (April 2, 2025), which sets 36 percent as the maximum total debt-to-income ratio for manually underwritten loans. The same section allows up to 45 percent when the borrower meets its credit score and reserve requirements, and up to 50 percent for loans underwritten through its Desktop Underwriter system. Fannie Mae sets no separate housing ratio.
What debt-to-income ratio does FHA allow?
HUD Mortgagee Letter 2014-02 (January 21, 2014) sets standard ratios of 31 percent for the mortgage payment and 43 percent for total fixed payments on manually underwritten FHA loans with no compensating factors and a credit score of 580 or higher. With one compensating factor the limits rise to 37 and 47 percent, with two to 40 and 50 percent, and borrowers with no discretionary debt can reach 40 and 40. Borrowers below 580 stay at 31 and 43. The FHA preset uses 31/43.
What debt-to-income ratio does VA allow?
VA regulation 38 CFR 36.4340, paragraph (d), says the standard is 41 percent or less of the total of housing costs and long-term debts divided by gross income. VA has no separate housing ratio. A loan above 41 percent can still be approved with written justification, and residual income at least 20 percent above the VA guideline removes that extra review. The VA preset uses a 41 percent total limit, adds no PMI, and leaves out the VA funding fee.
What PMI rate does the calculator use?
By default, 0.8 percent of the loan amount a year, divided by 12, and only when the down payment is under 20 percent of the price. You can change the rate or enter a monthly amount. No agency publishes one PMI rate. Fannie Mae says PMI typically ranged from 0.58 to 1.86 percent a year in 2022, and Freddie Mac says to expect $30 to $70 a month for every $100,000 borrowed, which is 0.36 to 0.84 percent a year. The 0.8 percent default sits inside both ranges. Your lender quotes the real premium on your Loan Estimate.
How does a dollar down payment change PMI?
With a fixed dollar down payment, the loan-to-value ratio depends on the price, and the price depends on whether PMI is added. The calculator tests every candidate price with its own loan-to-value ratio, so PMI switches on only at prices where the down payment is under 20 percent. Example: $150,000 income, $800 debts, 6 percent for 15 years, $60,000 down, 1.5 percent tax, 0.5 percent insurance, 0.75 percent PMI and 25/33 custom ratios give a maximum price of $341,914. The loan is $281,914, the loan-to-value ratio is 82.5 percent, so PMI of $176.20 a month is included.
What does the DTI band in the results mean?
It places your back-end ratio, all monthly debt payments including housing divided by gross monthly income, against the Fannie Mae limits in section B3-6-02. Within 36 percent is at or below the manual underwriting maximum. 36 to 45 percent needs the credit score and reserve requirements. 45 to 50 percent is possible only through Desktop Underwriter. Above 50 percent is over that maximum. FHA and VA use other limits, listed in the table on this page. The band is a comparison with published limits, not a rating of your finances.
Why does the calculator show a maximum price of $0?
Either your monthly debt payments already use the whole total DTI limit you chose, or your HOA dues and fixed dollar taxes and insurance are larger than the monthly housing budget. For example, $2,000 of monthly debt on a $60,000 income is a 40 percent ratio before any housing cost, which is above the 36 percent limit. Paying down debt, adding a co-borrower income or choosing a loan type with a higher limit changes the result.
Does the result include closing costs or FHA mortgage insurance?
No. The calculator covers the monthly payment test only. Closing costs, cash reserves, the FHA upfront and annual mortgage insurance premium and the VA funding fee are not added. For an FHA loan, enter the monthly mortgage insurance premium from a lender quote as a manual amount. Lenders also check credit, income history and assets, so the result is not a preapproval.
How we check this calculator
On November 6, 2026 we read the calculator code against the Fannie Mae, HUD, VA and CFPB sources above and ran the five audit test cases from an independent Python model through the calculator: the 28/36 limit with the housing ratio binding, the same with the debt ratio binding, 10 percent down with HOA dues and PMI, FHA 31/43, and a $60,000 dollar down payment where PMI depends on the solved price. Every price matched within $1, and every payment, PMI amount and ratio matched to the cent and to 0.1 point. The old code already solved the price correctly, charged PMI on the loan, charged tax and insurance on the price, and handled the dollar down payment case. We changed five things: the PMI rate (0.5 percent before) was hidden in a collapsed panel and had no basis, the "confidence" label followed the preset name, an error left the previous results on screen, a 100 percent down payment was rejected, and the presets had no sources. The unsourced "conservative 25/33" preset is gone; enter 25/33 as custom ratios if you want it.
Revision history: November 6, 2026, DTI presets tied to Fannie Mae, HUD and VA sources, PMI rate disclosed with default 0.8 percent, DTI band defined, $0 result with reason when debts exceed the limit, chart of maximum price by DTI limit, worked example and FAQ added; previous edition September 21, 2026.
Related: down payment calculator, VA mortgage calculator, amortization calculator, rent vs buy calculator, home equity loan calculator, HELOC calculator, Treasury yields, real estate market, all calculators.
Sources: Fannie Mae Selling Guide B3-6-02, debt-to-income ratios; HUD Mortgagee Letter 2014-02, FHA qualifying ratios; 38 CFR 36.4340, VA underwriting standards; CFPB, what is a debt-to-income ratio; CFPB, what is private mortgage insurance; Fannie Mae, private mortgage insurance; Freddie Mac, what is private mortgage insurance; Freddie Mac Primary Mortgage Market Survey; va.gov, VA purchase loan.
This mortgage affordability calculator gives estimates for education and comparison, based on the figures you enter and the rules cited above as of November 6, 2026. It is not a loan offer, a preapproval, or legal, tax or financial advice. Lenders set the rate, mortgage insurance and limits that apply to you. See our disclaimer.
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