How Much House Can I Afford? Home Affordability Calculator

By the CallARealtor team · Published November 3, 2026 · Updated November 3, 2026

Published by the CallARealtor team · How we researchSources linked belowIndependent, not a brokerage or lender

Quick answer: Lenders look at your debt-to-income ratio (DTI): all monthly debt payments, including the new housing payment, divided by gross monthly income. A common rule of thumb keeps housing near 28% of income and total debts near 36%; some loans allow more. Enter your numbers to see both levels.

How much house can you afford?

Example numbers are filled in. Change any of them and results update instantly.

Gross household income ($ per year)

Other monthly debt payments ($)Car, student loans, card minimums. Not rent.

Cash for the down payment ($)

Interest rate (%)Example rate, not a quote. See the Freddie Mac weekly average.

Loan term

Property tax (% per year)Example

Insurance ($ per year)Example

HOA ($ per month)

PMI (% of loan per year)Example, used under 20% down

Back-end DTI for the stretch level (%)Lender limits vary

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Free, no obligation. CallARealtor is not a brokerage or lender.

CallARealtor is an independent information site, not a real estate brokerage or lender, and is not affiliated with the National Association of REALTORS®. Results are estimates for planning, not loan offers or financial advice.

How we estimate what you can afford

We work out the most you could pay each month for housing (principal, interest, tax, insurance, HOA and PMI) at two levels, then find the home price that fits that payment with your down payment.

Comfortable: housing up to 28% of gross monthly income and all debts up to 36%. This is a widely used rule of thumb, not a legal limit.
Stretch: total debts up to the back-end DTI you choose (43% by default). Some loan programs allow higher, some lenders want lower.

The CFPB defines DTI as all monthly debt payments divided by gross monthly income and notes that limits differ by lender and loan product.

Assumptions

Your full cash amount goes to the down payment. Keep separate money for closing costs (try our closing cost calculator) and reserves.
The rate, tax, insurance and PMI values are examples. Replace them with real quotes.
Lenders also look at credit, savings and job history. This is not a pre-approval.

Frequently asked questions

What is a good debt-to-income ratio for a mortgage?

Lower is better. A common guideline is 36% or less for all debts, with housing around 28%. Many lenders accept higher ratios for some loans, and the CFPB notes that limits vary by lender and product.

Does the 28% rule use gross or take-home pay?

Gross income, before taxes and deductions, which is how lenders calculate DTI.

Should I buy at the stretch amount?

Just because a lender approves you for something doesn't mean you can comfortably afford it. Leave room for maintenance, savings and rising tax and insurance costs.

Is this a pre-approval?

No. It is an estimate. A lender pre-approval checks your credit, income and assets.

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