Mortgage Affordability Calculator

Find out how much house you can afford based on income, debts, and down payment.

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About This Calculator

The Mortgage Affordability Calculator helps you determine how much house you can realistically afford based on your income, debts, and down payment. Use industry-standard debt ratios to find your comfortable price range.

How to Use

  1. 1Enter your annual gross income
  2. 2Add existing monthly debts
  3. 3Input your available down payment
  4. 4Set expected interest rate and loan term

Formula

Max Payment = Income × 28% (Housing) or 36% (Total DTI)

Lenders typically require housing costs under 28% of gross income and total debts under 36%.

FAQ

Debt-to-Income ratio compares monthly debt payments to gross income. Lenders prefer under 36%, with some allowing up to 43%.

Conventional loans require 3-20%, FHA requires 3.5%, VA and USDA may allow 0%. 20% down avoids PMI.

Income, existing debts, credit score, interest rates, down payment, property taxes, and insurance all impact how much you can afford.

Usually no. Leave room for emergencies, maintenance, and lifestyle. Consider buying 10-20% below max.

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