Home Affordability and Debt-to-Income Calculator
Compare a comfortable home budget with a possible lender maximum and see your debt-to-income ratios.
What this calculator explains
Home affordability is not a single national multiplier. Lenders consider income, debts, credit, assets, loan type, property costs and underwriting rules, while households may choose a lower payment to protect savings or lifestyle goals. The calculator therefore compares a selected planning threshold with the user’s own monthly comfort limit.
The result shows both housing-only and total debt-to-income ratios, identifies the assumptions that most affect the estimated home price and clearly states that the figure is not a mortgage approval.
How the estimate is calculated
- Convert gross household income to a monthly amount.
- Multiply monthly income by the selected total DTI target.
- Subtract existing monthly debt payments to find the remaining housing-payment capacity.
- Subtract estimated property tax, insurance, PMI and HOA to find the amount available for principal and interest.
- Solve the amortization formula for an estimated loan amount, then add the down payment.
- Apply the optional user comfort limit and display the lower of the constraint-based scenarios.
Formula
DTI = total monthly debt payments ÷ gross monthly income; housing capacity = selected DTI amount − existing monthly debts
Worked example
With $10,000 gross monthly income, $800 of recurring debt and a user-selected 36% total DTI, the maximum total monthly debt in the model is $3,600. After existing debts, $2,800 remains for the full housing payment. If taxes, insurance, PMI and HOA total $700, only $2,100 is available for principal and interest.
Current rules and configuration notes
- Debt-to-income ratio is monthly debt payments divided by gross monthly income.
- There is no universal approval threshold for every lender or loan program; the user selects planning limits and the result remains an estimate.
- The result displays both housing-only and total DTI and does not promise mortgage approval.
Update requirement: The DTI formula is evergreen, but explanatory underwriting language must be reviewed when official consumer guidance changes.
Included in the estimate
- Gross-income and recurring-debt inputs
- User-selected total DTI target
- Comfortable payment cap
- Down payment, tax, insurance, PMI and HOA
- Estimated purchase price and loan amount
- Sensitivity to rates and housing costs
Not included or not guaranteed
- Credit-score underwriting
- Cash-reserve or asset-verification requirements
- Loan-program eligibility
- A universal lender DTI limit
- Closing-cost and maintenance affordability unless entered
Frequently asked questions
What is debt-to-income ratio?
DTI is total monthly debt payments divided by gross monthly income. It is one factor lenders may use when evaluating a loan.
What DTI should I use?
There is no single limit for every borrower or loan. Use the editable planning scenarios and treat the result as an estimate rather than guaranteed approval.
Does rent count in DTI after buying a home?
A current rent payment is generally replaced by the proposed housing payment in a purchase scenario, but other obligations remain. A lender applies its own underwriting treatment.
Why do taxes and insurance reduce the home price estimate?
The DTI budget applies to the full housing obligation, so higher non-loan costs leave less room for principal and interest.
Should I use gross or net income?
Mortgage DTI is generally expressed using gross income before taxes and deductions. Personal budgeting should also compare the result with take-home pay.
Is the maximum the same as affordable?
No. A maximum based on a selected ratio can be higher than the payment a household considers comfortable after savings, childcare, utilities and other goals.
Official sources
Applicable period: 2026 · Last reviewed: September 3, 2026
- Consumer Financial Protection Bureau — Debt-to-income ratio
- Consumer Financial Protection Bureau — Mortgages
Display the applicable period and a real Last reviewed date beside this source list.
Recommended internal links
Build the monthly payment in detail
Send the estimated loan amount to the mortgage calculator and add current tax, insurance, PMI and HOA figures.
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