House Affordability Calculator
Estimate the maximum home price you can likely afford based on your income, existing debts, down payment, and a target debt-to-income ratio.
Car, student loans, credit cards
Lenders often cap at 36-43%
Annual, % of home value
Estimated maximum home price
$336,609.61
What Your Result Means
Your estimated maximum home price is based on keeping your total monthly debt payments (including the new mortgage) at or below your chosen debt-to-income ratio - a key threshold lenders use when approving mortgages.
How It Is Calculated
Calqora first calculates your maximum allowed total monthly debt payment (income × target DTI), subtracts your existing monthly debts to find what's left for housing, then works backward through the mortgage payment formula - factoring in estimated property tax and insurance - to solve for the largest loan amount that payment supports.
Worked Example
With $90,000 annual income, $400/month in existing debt, a $40,000 down payment, 6.5% interest, a 30-year term, and a 36% max DTI, your estimated maximum home price is roughly $370,000.
Important Assumptions
- Uses a simplified debt-to-income calculation - actual lender underwriting considers credit score, reserves, and loan program rules.
- Property tax is estimated as a percentage of home value, which varies significantly by location.
Frequently Asked Questions
- What DTI ratio should I use?
- Many conventional lenders cap total DTI around 36-43%, though some programs allow higher. Check with a lender for your specific situation.
- Does this guarantee loan approval?
- No - this is an estimate only. Actual approval depends on your credit score, employment history, assets, and the specific lender's underwriting guidelines.
Related Calculators
Mortgage Calculator
Estimate your monthly mortgage payment, including taxes, insurance, and HOA.
Down Payment Calculator
Calculate the down payment amount and resulting loan amount for any home price.
Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio, a key number lenders use to evaluate loan applications.
Methodology
This calculator works backward from a target debt-to-income ratio through the standard mortgage payment formula. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.