Home Affordability Calculator

Lenders decide how much you can borrow with a debt-to-income ratio, and that ratio — not your enthusiasm — sets the ceiling. This calculator works backwards from your income and existing debts to the maximum monthly housing payment most lenders will accept, then converts that payment into a home price at your expected rate, term and down payment.

The front-end ratio looks only at housing costs as a share of gross monthly income; the back-end ratio adds every other recurring debt, such as car loans, student loans and minimum credit card payments. Conventional loans commonly allow a back-end ratio up to 43% and sometimes higher with compensating factors, while government-backed loans have their own limits. This tool lets you set the ratio and shows both views so you can see which constraint binds.

What a lender will approve and what you should spend are different numbers. A mortgage payment at the maximum ratio leaves little room for the irregular costs of ownership: a new roof, a failed water heater, or a special assessment. Many buyers find a ratio in the mid-thirties more comfortable, and a small increase in the down payment can lower both the payment and the need for mortgage insurance.

The estimate here covers principal, interest, property taxes and insurance, which is what lenders count as housing cost. It excludes HOA dues, mortgage insurance, closing costs and moving expenses. Those can add several hundred dollars a month on a condominium or an FHA loan, so treat the result as the outer edge of your range and ask a lender for a full pre-approval before you shop.

This home affordability calculator is an educational estimate of lender-style ratios, not a pre-approval. Lenders also weigh credit score, reserves, employment history and the property itself. Speak with a licensed mortgage professional for an accurate figure.