Your Numbers
Use combined income for a joint purchase. Existing monthly debts are payments you already owe before the new mortgage.
Income
Monthly Debts
Down Payment & Loan Details
Optional: tighten the estimate
Three Affordability Tiers
DTI Breakdown
| Metric | Your limit | Conservative | Moderate | Aggressive |
|---|
What's Eating Your Budget
This shows the highlighted tier's estimated monthly PITI at the maximum home price.
What This Means In Real Life
This is a qualification estimate, not an approval. Your actual approval depends on underwriting, credit, reserves, and the property.
Questions To Ask Yourself
- Does your employer verify income the same way lenders will?
- Have you budgeted for maintenance (1-2% of home price/year)?
- Is your down payment truly available, or partly earmarked for other things?
Get pre-qualified in minutes
A pre-qualification letter shows sellers you're serious and costs nothing.
Check rates & pre-qualify → Compare rates on Credible →Results are estimates for educational purposes only and are not financial advice. Rates and terms vary by lender and individual circumstances. See full disclosure.
Methodology
Monthly gross income is annual income plus co-borrower income divided by 12. The calculator compares front-end DTI, which limits housing costs, with back-end DTI, which limits housing plus existing debt.
Home price is back-solved iteratively: estimate price, calculate monthly taxes, insurance, HOA, PMI when the down payment is below 20%, and principal and interest, then adjust the price until total PITI matches the binding monthly limit.
Actual approval depends on credit score, reserves, property type, loan program, documentation, and lender overlays. Last updated: May 2026.
Frequently asked questions
How much house can I afford on my salary?
A common guideline is to keep your total housing costs (PITI) below 28% of gross monthly income, and total debt payments below 36–43%. Use this calculator to find your number based on your actual income and debts.
What is a debt-to-income ratio for a mortgage?
DTI is your total monthly debt payments divided by gross monthly income. Most lenders want a back-end DTI below 43%. Some loan programs allow up to 50% with compensating factors.
Does a bigger down payment increase how much house I can afford?
Yes. A larger down payment reduces your loan amount, lowers your monthly payment, and may eliminate PMI — all of which improve your DTI and increase your maximum affordable home price.
What income counts toward mortgage qualification?
Lenders count base salary, hourly wages, overtime (if consistent 2+ years), bonuses (if consistent), self-employment income (2-year average), rental income, Social Security, and pension. Part-time income counts if you have a 2-year history.
How do student loans affect mortgage affordability?
Student loans count toward your back-end DTI. For income-driven repayment plans, lenders typically use 0.5–1% of the loan balance as the monthly payment if your actual payment is $0. This can significantly reduce your buying power.
What is the 28/36 rule?
The 28/36 rule says your housing payment should not exceed 28% of gross income (front-end DTI) and total debt should not exceed 36% (back-end DTI). Many lenders now allow up to 43–50% back-end DTI with compensating factors, but the 36% threshold is a conservative benchmark.
How this calculator works
Maximum home price is back-solved from the DTI constraint: the allowable monthly housing payment equals the DTI limit multiplied by gross monthly income, minus existing monthly debt payments. The formula solves for the principal that produces that payment given the rate and term, adds property tax, insurance, HOA, and estimated PMI when loan-to-value is above 80%, then adds back the down payment.
Sources & assumptions
- DTI limits (28/36 rule) per conventional loan guidelines (Fannie Mae/Freddie Mac)
- FHA allows up to 43% back-end DTI; some conventional loans allow up to 50% with compensating factors
- Income and debt documentation requirements per HUD guidelines