Mortgage Affordability Calculator
Find the highest price your income supports while keeping total debt-to-income within lender limits.
Most you can afford
$398,834
$338,834 mortgage · $2,141.66 a month at 6.5%
- Your down payment$60,00015%
- Mortgage$338,83485%
- Debt-to-income
- 36% of 36% max
How this is calculated
Monthly gross income
Annual income before tax ÷ 12.
$8,333.33
Debt-to-income limit
Mortgage payment, property tax, insurance, HOA, PMI and other debts can be up to 36% of gross monthly income.
Largest price that passes
Found by testing prices until the ratios hit the limit.
$398,834.00
Mortgage
Price minus down payment.
$338,834.00
Monthly payment at your rate
What you would actually pay each month.
$2,141.66
Assumptions
- Uses Fannie Mae's total debt-to-income limits for conventional loans. FHA, VA and jumbo loans use different rules.
- Lenders also look at credit score, savings and employment history, which this doesn't check.
Worked examples
6% rate, 25-year amortization; property tax and other debts as listed in each scenario.
| Scenario | Max price | Mortgage | Payment |
|---|---|---|---|
| $80,000 income, $40,000 down | $365,933 | $325,933 | $2,099.99 |
| $120,000 income, $80,000 down | $514,579 | $434,579 | $2,800.00 |
| $180,000 income, $150,000 down | $817,390 | $667,390 | $4,300.00 |
Frequently asked questions
How much house can I afford on $120,000?
About $514,579 with $80,000 down, $400 of other monthly debts and a 6% rate, keeping total debt-to-income at 36%. The monthly payment would be $2,800.00.
What debt-to-income ratio do lenders allow?
Fannie Mae's limit for manually underwritten loans is 36% of gross monthly income, or up to 45% with strong credit and reserves; automated underwriting can approve up to 50%.
What counts toward debt-to-income?
The new mortgage payment with property tax, insurance, HOA dues and PMI, plus minimum payments on car loans, student loans and credit cards.
Sources
Estimates for information only; not tax, legal or financial advice. See our methodology.