Estimate how much house you can actually afford.

Work backward from income, debts, and ownership costs to a realistic home budget before you fall in love with a listing.

Finance Cluster

Turn income and debt into a realistic home budget

This is the house-hunting companion page. Instead of starting from a listing price, it works backwards from income, monthly debts, and a conservative debt-to-income stance.

Assumptions baked into this version
  • The default 28% and 36% thresholds are editable guidelines, not lender promises.
  • Monthly DTI is calculated from gross monthly income and monthly debt obligations.
  • Property tax estimated as a simple annual percentage of home value.
Method and limits

A planning estimate, not an approval decision

This page works backward from gross income, monthly debts, your down payment, the selected rate, and ongoing ownership costs. The front-end and back-end ratios are editable because real underwriting standards vary by program, reserve profile, and borrower details.

Property tax is estimated as a percentage of home value, not loan amount. That keeps the monthly ownership estimate closer to the way buyers actually experience the cost.

Debt-to-income ratio is explained by the Consumer Financial Protection Bureau. The common 28/36 planning guideline is also described in the Fannie Mae glossary.

Worked example

A household earning $120,000 per year with $850 in monthly debt obligations and a $60,000 down payment can use this page to estimate a conservative starting price band before shopping listings.

If the result feels aggressive for your comfort level, lower the DTI targets or raise the tax, insurance, and HOA assumptions. If it feels strict, that does not mean a lender will reject you. It means the calculator is staying on the cautious side.

Related tools and disclaimer

Results are informational estimates only and are not financial, tax, lending, investment, or legal advice.

Maintained by David K. ยท Last reviewed: July 23, 2026