Estimate an affordable house price based on your household income and debts, or based on a fixed monthly budget. Includes front-end and back-end DTI ratios for conventional, FHA, and VA loans.
| Maximum monthly housing budget | $0 |
| Front-end ratio used | — |
| Back-end ratio used | — |
| Estimated home price | $0 |
| Down payment | $0 |
| Loan amount | $0 |
| Monthly budget | $0 |
| Allocated to principal & interest | $0 |
| Allocated to taxes, insurance, fees | $0 |
| Estimated home price | $0 |
| Down payment | $0 |
| Loan amount | $0 |
In the U.S., mortgage lenders use two ratios — the front-end ratio and the back-end ratio — to determine how much money they are willing to lend. Both are variants of the debt-to-income (DTI) ratio.
The front-end ratio (also called the mortgage-to-income ratio) is computed by dividing total monthly housing costs by gross monthly income. Housing costs include principal, interest, property taxes, home insurance, and HOA or co-op fees.
For our calculator, only conventional and FHA loans use the front-end ratio.
The back-end ratio includes everything in the front-end ratio plus any recurring monthly debt, such as car loans, student loans, credit cards, child support, and personal loans.
This ratio is also known as the debt-to-income (DTI) ratio and is used for all calculations on this page.
A conventional loan is a mortgage that is not insured by the federal government and generally follows the guidelines of Fannie Mae or Freddie Mac. The 28/36 Rule is the most commonly used guideline: a household should spend no more than 28% of gross monthly income on the front-end ratio and no more than 36% on the back-end ratio.
FHA loans are insured by the Federal Housing Administration. Borrowers pay mortgage insurance premiums in exchange for more flexible requirements — including lower down payments and more relaxed DTI limits. To be approved for an FHA loan, the front-end/back-end ratio should be better than 31/43. FHA loans also require a 1.75% upfront mortgage insurance premium.
VA loans are guaranteed by the U.S. Department of Veterans Affairs and are available to veterans, active-duty service members, National Guard members, reservists, and surviving spouses. VA loans generally do not use a front-end ratio. For approval, the back-end ratio should be better than 41%. VA loans also require a funding fee.
Our calculator also allows you to select a custom DTI ratio from 10% to 50% in increments of 5%. If you use a custom DTI with a down payment below 20%, 0.5% of PMI insurance is added to monthly housing costs (assuming a conventional loan). There are no options above 50% because that exceeds the risk threshold for nearly all mortgage lenders.
If you can't immediately afford the house you want, here are several steps you can take over time:
Annual income: $120,000 → Monthly gross income: $10,000
Front-end limit (28%): $10,000 × 28% = $2,800/month for housing costs
Back-end limit (36%): $10,000 × 36% = $3,600/month for housing + all other debt
If you have $500/month in other debt, the housing budget is $3,600 − $500 = $3,100/month (back-end) or $2,800 (front-end). The lender uses the lower of the two.
Most lenders prefer a back-end DTI below 36%. Many will approve up to 43%, and FHA loans allow up to 43–50% with compensating factors. A lower DTI increases your chances of approval and may qualify you for better rates.
Conventional loans often require 5–20%, FHA loans require 3.5%, and VA loans may require 0% for eligible borrowers. A 20% down payment is a common benchmark because it avoids private mortgage insurance (PMI).
Monthly housing costs include principal and interest on the mortgage, property taxes, home insurance, HOA or co-op fees, and (if applicable) mortgage insurance and maintenance. Our calculator includes all of these.
The math is universal, but lending practices, DTI thresholds, and loan programs vary by country. The 28/36 Rule and FHA/VA rules are specific to the United States. Use the results as a general guide and confirm details with a local lender.
Lenders consider factors we can't fully capture, including your credit score, employment history, savings, and the specific loan program. This calculator gives you an estimate to guide your search — the lender's pre-approval is the definitive number.
Lenders use both. The front-end ratio limits housing costs alone, while the back-end ratio limits housing plus other debt. Your affordable price is the lower of the two results.
Yes — first-time homebuyers often qualify for FHA loans (3.5% down, 31/43 DTI) or conventional loans (3–5% down with PMI). Select the appropriate DTI rule in the calculator to see your estimated affordable price.
You may still qualify with compensating factors such as a large down payment, significant cash reserves, or a strong credit score. Alternatively, pay down debt, increase income, or look at less expensive homes to lower your DTI.