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Mortgage Calculators

Mortgage Affordability Calculator

See the maximum home price you can responsibly afford based on income, debts, down payment, and current rates.

Uses the standard 36% debt-to-income guideline lenders apply for conventional loans.

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$
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yr
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Estimated max home price
$462,111
Based on a 36% DTI guideline.
Max monthly housing payment
$3,100
Max loan amount
$402,111
Explain this result

Turn the numbers above into plain-language takeaways. Educational only — not financial advice.

Save & Compare Scenarios

Save the current inputs under a name, then reload or compare them side by side. Scenarios stay on this device only.

Overview

How the Mortgage Affordability Calculator Works

Affordability is about more than what a bank is willing to lend. This calculator uses the same 36% debt-to-income guideline most conservative lenders apply, then layers in property taxes, insurance, and HOA — so the price you see is one you can actually live with, not just qualify for.

Formula

The Math Behind the Calculator

Max monthly payment = (Monthly income × DTI limit) − Existing monthly debts. The calculator then solves for the home price where principal, interest, property tax, insurance, and HOA combined equal that maximum monthly payment.

Example

A Worked Example

A household earning $120,000 per year with $500 in monthly debts, a $60,000 down payment, a 6.5% rate, and a 30-year term can comfortably afford roughly $385,000–$420,000 in home price under a 36% DTI rule. Pushing toward 43% DTI raises the ceiling but cuts deeply into discretionary income.

How to use

How to Use the Mortgage Affordability Calculator

  1. 1Enter your gross (pre-tax) annual household income.
  2. 2Add up all recurring monthly debt payments: car loans, student loans, minimum credit card payments, child support.
  3. 3Enter the down payment you've saved (not including closing costs or emergency fund).
  4. 4Use a realistic rate and term, then tune the DTI limit between 28% (very conservative) and 43% (aggressive).
Interpretation

What the Results Mean

  • Max monthly payment is the most you should commit to housing each month given your other obligations.
  • Max home price is the price ceiling that produces that monthly payment at the rate and term you entered.
  • Going above this number is possible but means tighter cash flow and less room for savings, emergencies, or rate increases.
Keep exploring

Smart Next Steps

What to explore next
  • Estimate the exact monthly payment for a home at your target price.Calculate payment
  • See how PMI affects your monthly cost if your down payment is under 20%.Check PMI cost
Avoid

Common Mistakes to Avoid

  • Using gross income but forgetting that lenders look at all monthly debts, not just minimums.
  • Maxing out a pre-approval letter instead of buying below it.
  • Forgetting closing costs (typically 2–5% of price) and moving expenses.
Keep going

Related Calculators

Mortgage Payment Calculator

Estimate your monthly mortgage payment including principal, interest, property taxes, insurance, HOA, and PMI.

Down Payment Calculator

Calculate the down payment, loan amount, and loan-to-value ratio for any home price — and see how far you are from the 20% threshold that avoids PMI.

Debt-to-Income Ratio Calculator

Calculate the front-end and back-end debt-to-income ratios lenders use to evaluate mortgages and personal loans.

PMI Calculator

Estimate the monthly cost of private mortgage insurance for a low-down-payment conventional loan, and when it auto-cancels.

Learn

Related Guides

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FAQ

Frequently Asked Questions

Is the 36% DTI rule strict?+

It's a guideline, not a law. Many lenders approve up to 43–45% DTI for qualified borrowers, but the higher you go, the less cushion you have.

Should I use gross or net income?+

Lenders use gross (pre-tax) income, so this calculator does too. Just remember: your actual paycheck is smaller, so leave room for taxes.

Why does down payment matter so much?+

A larger down payment reduces the loan amount, eliminates PMI above 20%, and often unlocks a better interest rate.

Financial Disclaimer

This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.

Last updated June 2026 · Prepared by the mCalculator Editorial Team