Home Affordability Calculator
Estimate a practical home price from income, debts, down payment, DTI, rate, and monthly housing costs.
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How this calculator works
This home affordability calculator helps English search users estimate a realistic purchase price before talking to lenders. It uses household income, existing debts, down payment, mortgage rate, and a DTI ceiling.
Formula and assumptions
Maximum housing payment equals monthly gross income times the selected DTI limit, minus existing monthly debts. The remaining principal-and-interest budget is converted into a loan amount using mortgage present-value math.
FAQ
What DTI should I use?
Many buyers test 36% as a conservative back-end DTI, while some loan programs allow higher limits.
Does this guarantee loan approval?
No. Lenders also review credit score, assets, employment, property type, and local underwriting rules.
Does it include property tax and insurance?
Yes, if you enter a monthly estimate. These costs reduce the payment available for principal and interest.
Can I use this outside the US?
Yes for a rough affordability estimate, but country-specific lending rules and stress tests may be different.
