Free educational calculator

Mortgage Affordability Calculator

Compare a front-end housing limit with a back-end debt limit, then solve for a home price that fits the lower monthly amount.

Reviewed November 6, 2026 · Inputs and results stay in your browser.

Your scenario

Enter planning assumptions. Verify changing program fees with the linked primary sources.

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What your result means

The calculator uses the lower of the chosen housing-only limit and total-debt limit, then estimates a price whose principal, interest, taxes, insurance, and HOA fit that monthly budget.

Formula and assumptions

Housing limit = gross monthly income × front ratio. Debt-adjusted limit = gross monthly income × back ratio − monthly debts. Maximum housing payment is the lower value. A numerical search solves for price.

  • Income is stable gross income before taxes.
  • Debt input includes recurring obligations used by underwriting.
  • The entered ratios are planning assumptions, not approval standards.

Worked example

With $120,000 annual income, gross monthly income is $10,000. A 28% housing ratio allows $2,800; a 36% total-debt ratio less $800 in debts also allows $2,800.

Limitations

Approval also depends on credit, assets, reserves, income documentation, loan type, property, rate, mortgage insurance, lender rules, and other obligations. Comfortable spending can be lower than qualification.

FAQ

Frequently asked questions

What do 28 and 36 mean?

They are common educational planning ratios: 28% for housing and 36% for total monthly debts. They are not universal approval limits.

Should I use gross or take-home income?

Underwriting DTI typically uses qualifying gross monthly income. A personal budget should also test the payment against take-home pay and savings goals.

Why does HOA reduce affordability?

HOA dues are a recurring housing obligation and reduce the room available for principal and interest.