Mortgage Affordability Calculator
Estimate how much home you may be able to afford based on income, debts, and down payment.
Your Financial Profile
Before taxes
Car loans, student loans, credit cards, etc.
Typically 15 or 30 years
Optional
Annual rate as % of home value
Annual rate as % of home value
Within standard lending guidelines. Most lenders view this favorably.
Estimated Monthly Payment
Affordability Ratios
Understanding Mortgage Affordability
- →Lenders use two key ratios: the front-end ratio (housing costs ÷ income, guideline ≤ 28%) and the back-end ratio or DTI (all debts ÷ income, guideline ≤ 43%).
- →Affordability is different from approval. Being approved for a maximum amount doesn't mean you should borrow it — buying below your maximum improves monthly cash flow and financial resilience.
- →Reducing existing debt before applying improves your DTI, which can meaningfully increase the home price you qualify for and lower your interest rate.
- →This calculator uses standard lending guidelines. Actual approval depends on credit score, employment history, assets, and individual lender criteria.
Learn More
Understanding This Calculator
What this calculator does
This calculator estimates how much home you can afford based on your income, debts, down payment, and current rates, using standard lender guidelines like the 28/36 rule.
How to use the results
- 1.Enter your gross annual income, monthly debts, and down payment.
- 2.Set the interest rate and loan term.
- 3.The result shows the maximum home price and loan you likely qualify for.
Worked example
$90,000 income, $400/month debts, $40,000 down at 6.5%: max home price roughly $320,000–$360,000 depending on taxes and insurance — well below what a 'quick' multiplier suggests.
Important assumptions & limitations
- •Uses the 28/36 rule: housing under 28% of gross income, total debt under 36%.
- •Does not include your actual budget — affordability should reflect what you're comfortable paying, not the max a lender allows.
- •Property taxes and insurance vary by location and significantly affect the result.
Frequently asked questions
Learn More About Home Affordability
Interested in learning more about home affordability, mortgages, refinancing, and homeownership planning? Visit MortgageWizardTools.com for additional beginner-friendly guides and educational resources.
Disclaimer: This calculator is for educational purposes only. Results are estimates based on simplified assumptions using standard lending guidelines. Actual mortgage approval depends on credit score, employment, assets, and lender-specific criteria. Consult a qualified mortgage professional for personalized guidance.
Mike Starr
Founder, FinanceWizardTools · M.S. Organizational Management