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Home Loan Affordability Calculator
Estimate maximum home purchase price and loan principal based on your income and monthly debt limits.
Inputs
Pre-tax income
Car, student, credit cards
Savings for purchase
Standard banking cap is 36%
Results
Maximum affordable home price
—
Max monthly mortgage payment—
Maximum loan principal—
Down payment applied—
Debt cap guideline—
Calculated using banking Debt-to-Income (DTI) underwriting thresholds.
How this calculator works
Determines maximum property purchase price based on gross monthly income, down payment savings, and target Debt-to-Income (DTI) ratio caps.
Formula
Max Housing Payment = Gross Monthly Income × Target DTI %; Max Loan derived via PV of loan payments.
Worked Example
Gross income of $8,000/month with a 28% front-end DTI cap ($2,240 max payment) at 7% mortgage interest over 30 years and $50,000 down payment supports a ~$386,000 home purchase.
Assumptions
- Down payment is fully funded without borrowing.
- Borrower qualifies for benchmark market interest rates based on credit score.
Limitations
- Excludes property tax rates, homeowner association (HOA) fees, home insurance premiums, and Private Mortgage Insurance (PMI).
Disclaimer: Educational estimate only. Final approval depends on credit score and lender underwriting. See our Disclaimer.