United States · 2026 calculator

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.
Calculate the front-end housing cap and back-end total-debt cap from gross monthly income.
Subtract existing non-housing debt payments from the back-end cap. Use the lower of this capacity and the front-end housing cap.
Include tax on the full property value, monthly insurance and HOA, and the entered annual PMI rate on the loan when loan-to-value exceeds 80%.
Solve for the home price whose full monthly housing cost fits the budget, using the available down payment to reduce the loan.
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.

Rules and assumptions

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.

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 under comfortable and lender scenarios
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

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

Related tools

Build the monthly payment in detail

Send the estimated loan amount to the mortgage calculator and add current tax, insurance, PMI and HOA figures.