What is a Debt-to-Income (DTI) ratio?

DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders use two DTI limits: the front-end ratio (housing costs only, typically 28%) and the back-end ratio (all debts, typically 36%).

What debts should I include in the monthly debts field?

Include all recurring monthly debt obligations: car loan payments, student loan payments, minimum credit card payments, personal loan payments, and any other installment debt.

What is included in taxes/insurance/HOA?

This field should include your estimated monthly property taxes, homeowners insurance premium, and any HOA (Homeowners Association) fees. These costs are part of your total housing payment.

How is the maximum home price calculated?

The calculator finds the maximum monthly mortgage payment allowed by your DTI limits, then works backward to determine the largest loan amount and home price that payment can support given your interest rate and loan term.

House Affordability Calculator

Overview

Calculate how much house you can afford based on your income, debts, and down payment using a DTI-based affordability analysis.

The House Affordability Calculator uses Debt-to-Income (DTI) ratio analysis to determine the maximum home price you can afford. Enter your annual income, monthly debts, down payment, interest rate, and estimated property taxes, insurance, and HOA fees to get a comprehensive affordability estimate.

How to use

Estimate how much house you can afford in a few steps.

Enter your annual income: Provide your gross annual household income before taxes.
Add monthly debt payments: Include all recurring monthly debts such as car loans, student loans, and minimum credit card payments.
Set your down payment: Enter your available down payment as a percentage or fixed amount.
Enter loan details and extras: Fill in the expected interest rate, loan term, and estimated monthly property taxes, insurance, and HOA fees.
Review your affordability results: Check the maximum home price, maximum housing payment, and your front-end and back-end DTI ratios.

FAQs

What is a Debt-to-Income (DTI) ratio?: DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders use two DTI limits: the front-end ratio (housing costs only, typically 28%) and the back-end ratio (all debts, typically 36%).
What debts should I include in the monthly debts field?: Include all recurring monthly debt obligations: car loan payments, student loan payments, minimum credit card payments, personal loan payments, and any other installment debt.
What is included in taxes/insurance/HOA?: This field should include your estimated monthly property taxes, homeowners insurance premium, and any HOA (Homeowners Association) fees. These costs are part of your total housing payment.
How is the maximum home price calculated?: The calculator finds the maximum monthly mortgage payment allowed by your DTI limits, then works backward to determine the largest loan amount and home price that payment can support given your interest rate and loan term.