Home Affordability Calculator
Find out how much home you can afford based on your income, debts, and desired debt-to-income ratio.
Find out how much home you can afford based on your income, debts, and desired debt-to-income ratio.
Car, student loans, credit cards, etc.
Lenders use Debt-to-Income (DTI) ratios to determine how large a mortgage you can safely carry. The front-end ratio caps housing costs at 28% of gross monthly income; the back-end ratio caps all debt at 36%. Your maximum loan is back-solved from whichever limit is binding.
Max Monthly P&I = min(Income × 28%, Income × 36% − Monthly Debts) | Loan = Payment × [(1+r)^n − 1] / [r × (1+r)^n]On $80,000/year income with $500/month in debts and $60,000 down at 7%, the 36% back-end rule is usually binding. The result gives a realistic ceiling — always budget below the maximum.
A household earning $200,000 with minimal debts and a 20% down payment can afford homes well above the median price. Front-end DTI may be the binding constraint here.
Calculation uses standard 28/36 DTI guidelines. Taxes and insurance are excluded. Actual approval thresholds vary by lender and loan type (FHA allows higher DTIs).