Mortgages
Home Affordability Calculator
Estimate a home price from income, monthly debts, a selected DTI limit, loan terms, and housing costs. Adjust the example inputs to explore how different assumptions affect the estimate.
Your scenario
Adjust the numbers
Start with the example values or enter your own assumptions.
Based on your inputs
Your estimate
Educational estimate only. Actual terms, taxes, fees, and returns may differ.
How to use this calculator
Enter gross annual income, a DTI limit you want to model, other monthly debt, an assumed mortgage rate and term, down-payment percentage, and estimated monthly housing costs.
How the calculation works
Maximum housing budget = gross monthly income × selected total DTI − other monthly debt. The tool subtracts estimated taxes, insurance, HOA, and PMI, then solves the fixed-payment formula for the loan amount. Estimated home price = loan amount ÷ (1 − down-payment percentage).
Worked example
With $90,000 gross annual income, a selected 36% total DTI, $500 of other monthly debt, and $475 of monthly tax and insurance, the modeled housing budget is $2,200 per month and the principal-and-interest budget is $1,725. The price estimate then depends on the entered rate, term, and down payment.
Assumptions and limitations
The selected DTI is a scenario input, not a lender standard or approval threshold. The estimate omits closing costs, utilities, maintenance, rate changes, and lender-specific underwriting. Tax, insurance, HOA, and PMI values must be estimated for the property and loan.
Frequently asked questions
Does this tell me how much a lender will approve?
No. It is an estimate based on your assumptions. Lenders consider additional factors and may use different DTI limits.
Are taxes and insurance included?
They reduce the available monthly principal-and-interest budget only when you enter them. The tool does not estimate local costs.
Sources and further reading
Learn more
- How Much House Can I Afford on My Income? →
- How a Down Payment Changes Mortgage Cost →
- What Is Included in a Monthly Mortgage Payment? →
- Mortgage Cash to Close: What You May Need at Closing →
- Home Affordability: Costs Beyond Principal and Interest →
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Educational tool only. It does not provide personalized financial, tax, or legal advice.