Mortgage Affordability Calculator
Determine exactly how much house you can afford based on lender Debt-to-Income (DTI) requirements.
Input your parameters to generate the Mortgage Affordability Calculator results.
How to Use This Calculator
Get accurate results in seconds by following these simple steps.
Enter Your Income
Input your gross annual household income from all sources.
Add Existing Debts
Include monthly obligations like auto loans, student loans, and credit card payments.
Set Down Payment & Rate
Enter your available cash and current market interest rate to model the scenario.
See Your Max Price
Click Calculate to reveal the maximum home price, loan amount, and monthly payment you qualify for.
Why Use This Tool?
Realistic Budget Setting
Know your absolute ceiling before you start house shopping and fall in love with something unaffordable.
DTI Compliance
Results are based on standard lender DTI limits — the same math your bank uses.
Down Payment Impact
See how increasing your down payment directly raises the maximum home price you can target.
How We Calculate Your Max Home Price
Lenders determine your mortgage affordability by calculating your Debt-to-Income (DTI) ratio. Most traditional lenders cap your total monthly debts (including your new mortgage) at 36% to 43% of your gross monthly income.
This calculator takes your gross income, subtracts your existing monthly debts (like car loans and minimum credit card payments), and identifies the maximum monthly housing payment you qualify for.
Using standard interest rate amortization, we reverse-engineer that maximum monthly payment to find your maximum loan amount. Adding your available down payment yields your absolute Maximum Home Buying Price.
Frequently Asked Questions
The 28/36 rule is a standard guideline stating that your housing payment should not exceed 28% of your gross income, and your total debt payments (including housing) should not exceed 36%.
Yes, our algorithm automatically reserves approximately 20% of your maximum housing payment to account for property taxes and homeowners insurance, ensuring you aren't approved for a home you can't actually afford.
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