Real Estate

Mortgage Affordability Calculator

Max home price you can afford based on income and debts.

Enter your values

ⓘ Live results

Results
Max home price
$376,989.05
Max loan amount
$336,989.05
Max principal & interest payment
$2,130.00
Total max housing payment
$2,480.00

Quick answer

Affordability is generally capped by keeping total debts (including the new mortgage) at or below about 36-43% of gross monthly income.

Max payment = income x DTI limit - other debts

How to use the Mortgage Affordability Calculator

  1. 1Enter your gross monthly income and other debts.
  2. 2Set your target DTI (36% is conservative, some lenders allow up to 45%).
  3. 3Enter your rate, term, down payment and estimated taxes/insurance to see max price.

Worked example

Using the values the calculator loads with:

Inputs

  • Gross monthly income8000 $
  • Other monthly debts400 $
  • Target back-end DTI36 %
  • Mortgage rate6.5 % APR
  • Loan term30 years
  • Down payment40000 $
  • Monthly taxes + insurance350 $

Results

  • Max home price$376,989.05
  • Max loan amount$336,989.05
  • Max principal & interest payment$2,130.00
  • Total max housing payment$2,480.00

Frequently asked questions

Is this the same as pre-approval?

No — it's an estimate. Lenders verify income, credit and assets before issuing a formal pre-approval.

Should I borrow the max I qualify for?

Not necessarily — leave room in your budget for maintenance, savings and lifestyle.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.