Mortgage Affordability
Work out how much home you can afford based on income and debt.
About Mortgage Affordability
A debt-to-income limit caps the housing payment available after other debts, and that payment is converted back into a loan and home price. The down payment scales the result up to a purchase price. Pre-qualifying yourself for an affordable range before shopping prevents overextending on a home that is too expensive.
Formula
Mortgage Affordability
Max loan from a payment and rate; home price = loan / (1 - down%)
- dti
- maximum debt-to-income the budget allows
Worked example
With the default values below, Mortgage Affordability returns Max Loan of $11.12. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly income
- 6,000
- Other monthly debts
- 400
- Interest rateaccepts 0–30 %
- 6.5 %
- Yearsminimum 1
- 30
- Debt limit percentaccepts 0–100 %
- 36 %
- Down paymentaccepts 0–90 %
- 20 %
Results
- Max Housing Payment
- $1,760.00
- Max Loan
- $11.12
- Max Home Price
- $13.91
Step by step
- 1Values used
- 2Mortgage Affordability
- 3Max Loan= 11.12
- 4Max Housing Payment= 1,760.00
- 5Max Home Price= 13.91
Assumptions and limits
- The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Mortgage Affordability calculated?
Max loan from a payment and rate; home price = loan / (1 - down%) A debt-to-income limit caps the housing payment available after other debts, and that payment is converted back into a loan and home price. The down payment scales the result up to a purchase price.
Why does Mortgage Affordability matter?
Pre-qualifying yourself for an affordable range before shopping prevents overextending on a home that is too expensive.
What values do I need to enter?
This calculator takes 6 inputs: Monthly income, Other monthly debts, Interest rate, Years, Debt limit percent, Down payment. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.