Home Affordability Calculator
Calculate maximum home purchase price and loan capacity based on gross household income, monthly debt payments, cash down payment, and DTI rules.
Income & Debt Inputs
Car loans, student debt, credit card minimums.
In Brief
With an $8,000 monthly income and $500 monthly debts, your recommended max monthly housing payment is $2,240. Combined with $50,000 down payment, you can afford up to a $357,112 home.
Home Purchase Financing Power
Financed mortgage loan capacity vs Cash down payment
User Insights
Smart analysis of your current calculation
Interest represents 28% DTI Cap of your total out-of-pocket repayment.
Adding an extra monthly contribution accelerates principal payoff and cuts total financing costs.
Your $2,240 max payment respects the 28% front-end debt limit. Increasing down payment by $10,000 raises your home budget to $367,112.
Calculation Methodology & Live Formula Breakdown
How Lenders Determine Home Affordability
Lenders evaluate your Debt-to-Income (DTI) ratios. Front-end DTI caps monthly mortgage, taxes, and insurance at 28% of gross income, while back-end DTI caps all monthly debts combined at 36%.