Mortgage Affordability Calculator
Find out how much house you can afford based on your income, existing debts, and down payment.
Your Income
Before taxes, all household income
Car loans, student loans, credit cards, etc.
Down Payment & Loan Terms
--% of home price
Current 30-year average ~6.5-7%
Maximum debt-to-income ratio
Additional Monthly Costs
These costs are included in your total monthly payment and DTI calculation.
Annual % of home value
Enter your details and click Calculate
to see how much house you can afford
Maximum Home Price
Based on your income and debts
$--
Loan amount: $--
Total Monthly Payment
Including all housing costs
$--
DTI: --%
Monthly Payment Breakdown
Summary
Home Price
$--
Down Payment
$-- (--)
Loan Amount
$--
Monthly Income
$--
Affordability by DTI Level
See how much you can afford at different risk levels
Mortgage Affordability
This calculator determines the maximum home price you can afford based on your income, existing debts, and down payment. It uses debt-to-income (DTI) ratios that lenders use to qualify borrowers.
How to Use
- 1 Enter your total household gross income (before taxes).
- 2 Enter your monthly debt payments (car loans, student loans, credit cards).
- 3 Enter your available down payment and expected interest rate.
- 4 Adjust property taxes and insurance to match your area.
FAQ
What is DTI and why does it matter?
Debt-to-income (DTI) ratio is your total monthly debt payments divided by gross monthly income. Lenders use it to assess risk. Most conventional loans require DTI under 43%, though some allow up to 50% with strong compensating factors.
What is PMI?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan amount annually. PMI can be removed once you reach 20% equity in your home.
Should I max out my budget?
Just because you can afford a certain amount doesn't mean you should spend it. Consider other expenses like maintenance (1-2% of home value annually), utilities, furniture, and lifestyle. Many financial advisors recommend spending less than you qualify for.
What about closing costs?
Closing costs typically run 2-5% of the loan amount and are separate from your down payment. Budget for both. Some loans allow rolling closing costs into the mortgage, but this increases your loan amount and monthly payment.
How accurate is this calculator?
This provides a good estimate, but actual approval depends on credit score, employment history, assets, and specific lender guidelines. Get pre-approved by a lender for a more accurate number.
Calculator Limitations
This calculator provides estimates based on DTI ratios. Actual loan approval depends on credit score, employment, assets, and lender-specific criteria. Property taxes and insurance vary significantly by location.
