Mortgage Affordability Calculator

See how much house you can afford based on your income, existing debts, down payment, and interest rate, using a debt-to-income limit lenders commonly apply.

Gross annual income

Monthly debt payments

Car loans, student loans, credit-card minimums, etc.Down payment

Interest rate

Loan term

years

Monthly tax + insurance

Debt-to-income limit

Lenders commonly use 36% (back-end). Some allow up to 43-45%.

Estimated home price you can afford

$340,601

Based on a 36% debt-to-income limit

Max total monthly debt$2,700

Max housing payment$2,300

Max principal & interest$1,900

Max loan amount$300,601

Plus down payment$40,000

Monthly Budget Breakdown

What this calculator does

This tool estimates the home price you can afford. It starts from a debt-to-income limit, subtracts your existing debts and estimated tax and insurance, and converts the remaining budget into a maximum loan and purchase price.

Who it is for

Anyone planning to buy a home who wants a realistic target price before shopping or getting pre-approved.

How it works

Your maximum total monthly debt is your gross monthly income times the debt-to-income limit (36% by default). Subtracting your current debts and monthly tax and insurance leaves the budget for principal and interest, which is converted to a loan amount using the rate and term. Adding your down payment gives the affordable price.

Common mistakes to avoid

Borrowing to the maximum the calculator allows, leaving no room for savings or emergencies.
Forgetting property tax, insurance, HOA fees, and maintenance, which all reduce what you can comfortably spend.
Ignoring closing costs, which are separate from the down payment.

Frequently Asked Questions

How much house can I afford?expand_more

A common rule is that your total monthly debts, including the new mortgage, should stay within about 36% of your gross monthly income (the back-end debt-to-income ratio). This calculator works backwards from that limit to an affordable price.

What is debt-to-income (DTI)?expand_more

DTI is the share of your gross monthly income that goes to debt payments. Lenders often cap the back-end ratio around 36%, though some allow 43-45% depending on the loan and your profile.

Does a bigger down payment let me afford more?expand_more

Yes. The payment-based limit caps your loan amount, and your down payment is added on top, so more cash down raises the price you can buy.

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