Find out how much home you can comfortably afford based on your income, monthly debts, and down payment — using standard lender guidelines.
Determine how much house you can afford based on your income, debts, and spending preferences.
Input your gross (pre-tax) annual household income. This is the primary factor lenders use to determine how much you can borrow.
Include all recurring debt payments — car loans, student loans, credit card minimums, and any other obligations. This helps calculate your debt-to-income ratio.
Choose your expected interest rate, loan term, and down payment percentage. These shape the size of the mortgage you can qualify for.
Add estimated property tax rate and annual insurance. These costs are included in lender affordability calculations and affect your maximum home price.
See the maximum home price you can afford, your estimated monthly payment, and your DTI ratio. The results show conservative, moderate, and aggressive scenarios.
Lenders use two key ratios: the front-end ratio (housing costs ÷ gross income) and the back-end ratio (all debts ÷ gross income). Most conventional loans require a back-end DTI under 43%.
Your credit score, employment history, and down payment also heavily influence how much you qualify for.
Total housing costs (PI+T+I+PMI) should be no more than 28% of gross monthly income.
All monthly debt payments including housing should be under 36–43% of gross income.
Pay down debts, save a larger down payment, or find a co-borrower to increase the price you qualify for.
Many advisors suggest your home price should be 2.5–4× your annual gross income as a starting point.