The supported home price is constrained by both the monthly payment ceiling and available cash. If the cash constraint is lower, saving a larger down payment may matter more; if the DTI constraint is lower, price or rate has more influence.
Qualification is not the same as comfort. Credit score, loan program, reserves, taxes, insurance and lender overlays can change approval, while expenses omitted from DTI can still strain cash flow.
How much house your income and DTI limit support
Choose a debt-to-income ceiling and enter income, existing debt, down-payment cash, rate, tax and insurance. The calculator estimates a home price within that modeled monthly housing budget. A selected DTI is an assumption, not a universal lending rule.
The supported home price is constrained by both the monthly payment ceiling and available cash. If the cash constraint is lower, saving a larger down payment may matter more; if the DTI constraint is lower, price or rate has more influence.
Qualification is not the same as comfort. Credit score, loan program, reserves, taxes, insurance and lender overlays can change approval, while expenses omitted from DTI can still strain cash flow.
UNDERSTAND THE NUMBERS
Fixed educational example · independent of your inputs above. $ means US dollars; these are not current rate quotes or return forecasts.
Assume annual gross income of $72,000 and a selected total debt-to-income ceiling of 36%. That allows $2,160 monthly for housing plus existing debt. Compare existing debt payments of $300 and $800.
| Existing monthly debt | Housing budget | Budget includes |
|---|---|---|
| $300 | $1,860 | Principal, interest, tax, insurance, PMI |
| $800 | $1,360 | Principal, interest, tax, insurance, PMI |
An extra $500 of debt service reduces housing room by exactly $500 before any home-price calculation. The affordable price then depends on rate, term, property tax, insurance and cash available. Income multiples hide those differences.
The selected DTI is a scenario, not an approval promise. It uses gross income, while everyday expenses come out of take-home pay. The model can use available cash for the down payment; cash reserved for closing costs or emergencies should be kept out of that input.
Keep income fixed and increase the mortgage rate by one percentage point. Then reduce available down-payment cash. Check both the modeled price and the monthly amount left for non-debt spending.
Inspect the payment for a specific property →Prepared by EconoPi · examples and explanations reviewed September 19, 2026. Tables are our calculations under stated assumptions, not forecasts or recommendations by the referenced organizations.
The model does not use a fixed income multiple. It calculates payment capacity and tests home prices against that capacity using your cash, rate, term, tax, insurance and estimated PMI.
With 36% selected, modeled housing costs plus existing monthly debt cannot exceed 36% of gross monthly income. Other lenders or loan products can use different limits.
The scenarios compare 5%, 10%, 15% and 20% down under the selected payment budget and cash constraint. This model adds estimated PMI below 20%; it does not determine eligibility for a specific loan program.
Add up recurring debt payments — car loans, student loans, credit card minimums.
All math runs in your browser and your inputs are never sent to a server. Settings are saved locally and share links encode the state in the URL. For information only — not investment or tax advice.