REI Utility
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Buyers

Home Affordability Calculator

How much house can you actually afford? This calculator uses the US lender standard 36% back-end DTI rule plus your real numbers to give you a confident price range.

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How to use this calculator

  1. Enter your annual gross (pre-tax) income.
  2. Add your monthly debt payments — car, credit cards, student loans, etc.
  3. Enter the down payment you've already saved.
  4. Add the rate and term you'd qualify for.

What your results mean

The maximum home price assumes you spend at most 36% of gross income on total debts (your new mortgage + existing debts). DTI is what lenders care about most. Some will stretch to 43-50% for borrowers with strong credit and reserves.

7 tips for first-time home buyers in the US

  • Get pre-approved before shopping — sellers ignore offers without one.
  • Budget for closing costs (2-5%) on top of the down payment.
  • Leave 3-6 months of reserves in savings after closing.
  • Don't open new credit lines while your loan is in underwriting.
  • Pay down credit cards to under 30% utilization at least 60 days before applying.
  • Look into state first-time buyer programs (down payment assistance, tax credits).
  • Get a home inspection — even on new builds.

Frequently asked questions