Home Affordability Calculator - How Much Mortgage Can I Afford by Income & DTI?

Start from gross monthly income and existing debts. Many lenders review front-end DTI (housing only, often around 28%) and back-end DTI (all debts, often 36% to 43%). Subtract other debts from your allowed payment, then reverse-amortize that payment into a loan amount at your rate and term, and add your down payment for a purchase-price ceiling. Example: $80,000 income with $500 debts and $20,000 down at 6.5% often supports roughly $280,000-$320,000 depending on taxes and insurance. This calculator estimates that range; only a lender can approve a mortgage.

Borrowing power is the loan amount—not the full home price. It depends on income, debts, credit, down payment, rate, term, and escrow for taxes and insurance. The 28/36 DTI rules give a conservative planning cap; FHA, VA, and conventional programs can allow higher back-end DTI with compensating factors. Enter income and debts here to estimate how much you can borrow, then get pre-approved for a firm limit. Always leave budget for utilities, maintenance, and emergency savings beyond the mortgage payment.

Home affordability depends on your gross income, existing monthly debts, down payment, interest rate, loan term, property taxes, and home insurance. Most lenders cap housing costs around 28% of gross income and total debts around 36% to 43% of gross income, though programs vary. This calculator estimates a practical price range based on those inputs - it is a planning tool, not a loan approval. Always leave room for maintenance, utilities, and emergency savings beyond the mortgage payment.

Debt-to-income (DTI) ratio compares your total monthly debt payments to gross monthly income. Lenders typically review front-end DTI (housing costs only) and back-end DTI (all debts including the new mortgage). A back-end DTI of 36% or lower is conservative; many programs allow up to 43% or higher with strong credit. A lower DTI gives more breathing room for mortgage payments, property tax increases, and unexpected expenses without stretching your budget.

Yes. Enter estimated annual property tax and home insurance to model a more realistic monthly housing payment instead of principal and interest alone. Taxes and insurance are often collected through an escrow account and can add hundreds of dollars to your monthly cost. If you live in a high-tax area or a region with elevated insurance premiums, including these figures prevents underestimating what you can truly afford.

No. A lender pre-approval verifies your credit score, income documentation, employment history, assets, and specific loan program rules to determine how much they will lend you. This calculator uses general affordability guidelines and your self-reported numbers to estimate a budget range before you shop. Use it to set a realistic price ceiling, then get pre-approved to confirm your buying power and strengthen offers with sellers.

A 20% down payment avoids private mortgage insurance (PMI) on conventional loans, but many buyers qualify with 3% to 10% down through FHA, VA, or conventional low-down-payment programs. A larger down payment reduces your loan amount and monthly payment, which can increase the home price you afford. Enter different down payment amounts in this calculator to see how each scenario changes your estimated price range and monthly housing cost.