Estimate the home price you can afford from your income.
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How is home affordability calculated from income?
Max monthly payment = income ÷ 12 × DTI − debts; that payment is converted to a loan amount using the mortgage formula, then the down payment is added for the price. For example, an 80,000 income with low debts and 40,000 down can often support a home in the low-to-mid 300,000s. Lenders also weigh credit, taxes and insurance.
Understanding your result
This is a rough estimate; lenders also weigh credit, taxes, insurance and other factors.
Formula and method
Max monthly payment = income ÷ 12 × DTI − debts. That payment is converted to a loan amount using the mortgage formula, then the down payment is added for the price.
Assumptions and limitations
A simplified estimate using a debt-to-income limit. Lenders also weigh credit score, employment, property taxes, insurance and down payment, so a pre-approval is the real test.
Worked example
An 80,000 income with low debts and 40,000 down can often support a home in the low-to-mid 300,000s.
How to use this tool
- Enter your income and monthly debts.
- Add your down payment, rate, term and DTI limit.
- Press Calculate.
Common mistakes to avoid
- Ignoring property tax and insurance, which reduce affordability.
About the Home Affordability Calculator
Estimate the home price you could afford based on your income, existing debts, down payment and a target debt-to-income ratio.
Who should use this tool
First-time and existing home buyers who want a realistic price range before house hunting.
Benefits
- Get a sensible home-price range from your income.
- See the maximum monthly payment a lender may allow.
- Understand how debts and down payment change affordability.
Practical use cases
- Setting a budget before viewing homes.
- Seeing how paying off debt boosts your budget.
- Comparing affordability at different interest rates.
Frequently asked questions
What DTI should I use?
Many lenders cap total debt around 36–43% of gross income; 36% is a common conservative target.
Why is this only a rough estimate?
The calculator uses your income, debts, deposit and a target debt-to-income ratio, but real lenders also weigh credit history, property taxes, insurance, interest rates and employment. Those factors can raise or lower what you can actually borrow, so treat the figure as a starting point, not a promise.
What debt-to-income ratio should I choose?
The ratio caps how much of your income can go toward debt payments, so a lower figure is more conservative and a higher one more stretched. Lenders set their own limits, which vary by location and product, so try a range to see how the affordability changes.