How Much House
Rough max price from income, DTI, rate, taxes/insurance, and down payment (not a pre-approval).
About this calculator
This calculator works backward from a monthly payment budget to a maximum home price, the reverse of a standard mortgage payment calculation. It first caps monthly housing spending at Max Housing DTI % of gross monthly income, subtracts Monthly Tax + Insurance to isolate the portion available for principal and interest, then uses the standard mortgage amortization formula to solve for the largest loan that monthly payment supports at the given Mortgage APR and Loan Term. Down Payment Saved is added to that loan amount afterward to produce Est.
Max Price -- it does not change the loan calculation itself, only what gets added on top of it. Annual Gross Income has the largest effect on the result because it sets the entire payment budget before any other factor is applied. This is explicitly a back-of-envelope estimate, not a pre-approval: it does not account for existing debts beyond the DTI percentage entered, credit score, cash reserves, HOA dues, PMI, or a lender's specific underwriting overlays, all of which real mortgage approval depends on alongside income and rate.
Inputs
Results
Est. max price
$455,527.00
≈ 11 Teslas
How to Use This Calculator
- Enter Annual Gross Income for your entire household.
- Set Max Housing DTI % — lenders typically allow 28–36% of gross income toward housing (PITI).
- Enter the Mortgage APR and Loan Term (Years) to reflect current market rates.
- Fill Monthly Tax + Insurance with an estimated escrow amount for property tax and homeowners insurance.
- Enter Down Payment Saved to see how it affects the Est. Max Price and Loan Amount.
- Review Max Home Price and Monthly PITI Cap — then check that real listings in your target area fit within these limits.
- Use the chart to compare Est. Max Price, Loan Amount, and Monthly PITI Cap at a glance.
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How the result changes with Annual gross income
| Annual gross income | Est. max price |
|---|---|
| $500,000.00 | $2,377,789.00 |
| $1,750,000.00 | $8,310,694.00 |
| $3,250,000.00 | $15,430,181.00 |
| $4,500,000.00 | $21,363,087.00 |
What each input means
- Annual gross income
- Household gross annual income.
- Max housing DTI %
- Share of gross income for housing (PITI).
- Mortgage APR
- Annual interest rate.
- Loan term (years)
- Amortization in years.
- Monthly tax + insurance
- Property tax and insurance escrow (estimate).
- Down payment saved
- Cash toward purchase.
How this is calculated
Worked example, using the default values
- Identify Input Parameters6 parametersAnnual gross income = 95000, Max housing DTI % = 36, Mortgage APR = 6.5, Loan term (years) = 30, Monthly tax + insurance = 350, Down payment saved = 60000 = 6 input(s) provided
- Calculate Est. max priceEst. max price = loan + down455527 = $455,527
- Calculate Loan amount395527 = $395,527
- Calculate Monthly PITI capMonthly PITI cap = income * dti - taxIns2850 = $2,850
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
Frequently Asked Questions
Why does this calculator say 'not a pre-approval'?
Because it only models income, a single debt-to-income percentage, interest rate, term, and a flat tax-and-insurance estimate -- it does not check credit score, existing debts beyond the DTI figure entered, employment history, cash reserves, or a specific lender's underwriting rules, all of which affect a real pre-approval amount. Treat the result as a starting estimate for house-hunting, not a number a lender has verified.
Does raising Loan Term (years) always let me afford more house?
Yes, for a fixed monthly payment budget -- a longer amortization period spreads the same payment over more months, which supports a larger loan principal at a given Mortgage APR. The tradeoff is more total interest paid over the life of a longer loan, which this calculator does not display directly.
How does Monthly Tax + Insurance eat into affordability?
It is subtracted from the total monthly housing budget (income times Max Housing DTI %) before the remainder is used to size the loan, so every dollar of Monthly Tax + Insurance is a dollar not available for principal and interest. A higher estimate for taxes and insurance directly lowers both the supportable Loan Amount and Est. Max Price.
Why does the DTI cap matter so much to the result?
Max Housing DTI % sets the ceiling on monthly housing spending as a share of Annual Gross Income before anything else is calculated, so it acts as a multiplier on the entire payment budget. Lenders commonly cap housing DTI in the 28-36% range, though actual limits vary by loan program and borrower profile.
What happens if Monthly Tax + Insurance exceeds my whole housing budget?
Loan Amount floors at $0, since there is no payment capacity left for principal and interest once tax and insurance consume the entire DTI-based budget. In that case Est. Max Price falls back to just the Down Payment Saved amount, since no loan is supportable.
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