Home Affordability Calculator
This home affordability calculator estimates the maximum home price you could realistically afford, based on your income, existing debts, down payment and a target debt-to-income ratio. Enter your numbers to see a ceiling to shop within, not just a hopeful guess.
Your income before tax, household total if buying jointly.
Car loans, student loans, credit cards, and any other minimum debt payments — not including the mortgage you're solving for.
Cash you have available to put down.
The rate you expect to qualify for.
Length of the mortgage.
The share of gross monthly income lenders will let go toward all debt, including the new mortgage. 36% is a common conservative guideline.
Maximum home price
$403,885
An estimate of the most you could afford, based on your DTI limit and down payment.
How to use this home affordability calculator
- 1Annual gross income and existing monthly debt payments: the inputs lenders use for your debt-to-income ratio.
- 2Down payment available and mortgage rate/term: the loan terms you expect to use.
- 3Maximum debt-to-income ratio: 36% is a common conservative guideline; many lenders allow up to 43-45% with strong credit, but a lower number leaves more monthly breathing room.
Understanding your results
Maximum home price is your down payment plus the largest loan you could service without exceeding your target DTI. Maximum monthly mortgage payment is what's left of your DTI budget after your existing debts — the number your future mortgage payment (principal, interest, and typically taxes and insurance) needs to stay under.
The formula
Max payment = (Income ÷ 12 × Max DTI%) − Existing debt · Max loan = solved from that paymentThe calculator first works out your total allowed monthly debt budget (income times your DTI limit), subtracts what you're already paying toward other debts, and treats what's left as the ceiling for your future mortgage payment. It then solves backward — using the standard loan payment formula in reverse — to find the largest loan amount that fits inside that monthly payment at your given rate and term.
A worked example
A $90,000 annual income ($7,500/month) with $400 in existing debt payments and a 36% DTI limit allows up to $2,700/month toward all debt ($7,500 × 36%). Subtracting the $400 already committed leaves $2,300/month for a new mortgage payment. At 6.5% over 30 years, that supports a loan of roughly $364,000 — plus a $40,000 down payment, a maximum home price around $404,000.
Notes for the UK, US and India
This estimate covers principal and interest only — real mortgage affordability also factors in property taxes, homeowners insurance, and sometimes HOA fees, all of which eat into the same DTI budget and lower your real maximum loan. Treat this as a starting ceiling, then verify with a lender who can quote your exact allowed DTI and include those extra costs.
Frequently asked questions
Does this include property taxes and insurance?+
No — this estimates the maximum principal-and-interest payment only. Lenders typically include taxes and insurance (often called PITI) in your real DTI calculation, which will lower your actual maximum loan somewhat versus this estimate.
Why do lenders care about DTI instead of just income?+
Two buyers with the same income can have very different ability to take on a mortgage if one already has heavy car and student loan payments — DTI captures your total debt burden, not just your income, which is a better predictor of repayment risk.
Should I borrow the maximum this calculator shows?+
Not necessarily — this is a lender-affordability ceiling, not a personal comfort recommendation. Many buyers are more comfortable at a meaningfully lower payment that leaves room for savings, emergencies, and other goals.
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