Mortgage Affordability Calculator

Can you actually afford this house? See your DTI ratio, approval chances, and how much take-home pay you'll have left.

Mortgage Affordability Calculator

Your Income

Fields marked with an asterisk () are required.

Your Existing Monthly Debts

Include only minimum required monthly payments.

The Home You're Considering

Affordability Results

0%Back-End DTI: 0%100%
Ideal
Borderline
High Risk

Estimated Monthly Payment (PITI)
$0
Front-End DTI (Housing only)
0%
Back-End DTI (All debts)
0%
Take-Home Left After Housing
$0/mo
Maximum Safe Home Price (at 43% DTI)
$0
PMI Required?
Yes

How We Calculate It

functions

The Affordability Math

We calculate your exact monthly housing costs (PITI + HOA), then compare those costs to your income to generate your Debt-to-Income (DTI) ratios, which is the exact metric lenders use to approve or deny a loan.

Front-End DTI=Monthly PITI ÷ Monthly Gross Income
Back-End DTI=(PITI + All Debts) ÷ Monthly Gross Income
Max Price=Working backward from 43% Back-End DTI

DTI Limits Reference

  • ConventionalMax 36% – 45%
  • FHAMax 43% – 50%
  • VAMax 41%

Limits refer to back-end DTI. Source: CFPB & Fannie Mae guidelines.

Built on Industry Standards

Our calculator evaluates Debt-to-Income (DTI) ratios using the standard qualification guidelines utilized by major U.S. lenders. Definitions and thresholds align with resources provided by the CFPB and Fannie Mae.

*Disclaimer: This tool is for educational and estimating purposes only. It does not constitute financial or legal advice. A favorable DTI ratio does not guarantee loan approval. Actual qualification amounts will be determined by a licensed lender based on a full review of your credit, income, and assets.

Frequently Asked Questions

What's the difference between gross income and take-home pay for mortgage qualification?expand_more

Lenders use your gross income (before taxes) to calculate your Debt-to-Income (DTI) ratio for approval. However, you pay your mortgage with your take-home pay (after taxes). This is why many people feel 'house poor' even after a bank says they qualify. This calculator shows both: your DTI for the bank, and your leftover cash for your real life.

What DTI ratio do I need to get approved?expand_more

For conventional loans, lenders typically prefer a back-end DTI (all debts including housing) of 36% or less, but will often approve up to 43% to 45% if you have excellent credit or a large down payment. FHA loans can sometimes be approved with a DTI up to 50%.

Source: CFPB
How much house can I afford on my income?expand_more

An old rule of thumb was 2.5 to 3 times your annual gross income. However, that ignores interest rates and your other debts. The most accurate way to find your maximum home price is to use your back-end DTI ratio. This calculator works backward from a safe 43% DTI threshold, subtracts your current debts, and tells you exactly how much house you can buy at current interest rates.

What happens if my DTI is too high?expand_more

If your DTI is too high, you have a few options to lower it: 1) Save for a larger down payment so your mortgage is smaller. 2) Pay off existing debts like car loans or credit cards to free up monthly cash. 3) Look for a lower-priced home. 4) Apply with a co-borrower to increase your total household gross income.

Should I use gross or take-home pay to budget my mortgage?expand_more

You must use gross income to see if you qualify for the loan (because that's what the bank uses). But you must use take-home pay to decide if you can actually afford it. A good personal finance rule is that your housing payment should not exceed 25-30% of your take-home pay.

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