How much mortgage can you qualify for?
Enter your gross annual income, monthly debt payments, interest rate, and term. The calculator applies the same debt-to-income rules lenders use to estimate your maximum home price, loan amount, and monthly payment — and tells you which rule is limiting you.
How to use this calculator
Enter your gross annual income (before taxes). Add up your recurring monthly debt payments — car loans, student loans, minimum credit-card payments — and enter the total. Enter the interest rate and loan term you expect. Optionally add a down payment and an estimate of monthly property taxes plus insurance. Click Calculate to see your maximum home price, loan amount, and monthly payment.
How mortgage companies determine how much you qualify for
Lenders don't just look at your income — they look at how much of it is already committed to debt. Two debt-to-income (DTI) ratios drive the decision:
- Front-end ratio (housing ratio): your total monthly housing payment divided by your gross monthly income. A common limit is 28%.
- Back-end ratio (total DTI): your housing payment plus all other monthly debt divided by gross income. A common limit is 36% (some loan programs allow more).
Your maximum housing payment is the lower of what those two ratios allow. If you carry other debt, the back-end ratio usually binds — which is why paying down a car loan or credit card can increase how much home you qualify for.
From monthly payment to loan amount
Once the maximum monthly payment is set, the lender works backward through the amortization math — using your rate and term — to find the largest loan whose payment fits that budget. Add your down payment and you get the maximum home price. Taxes, insurance, and HOA dues share the same monthly budget, so higher taxes mean a smaller loan.
Mortgage Affordability Calculator FAQ
How do mortgage companies determine how much you qualify for?
They compare your income to your debts using two debt-to-income ratios: a front-end (housing) ratio, often capped near 28% of gross income, and a back-end (total debt) ratio, often capped near 36%. Your maximum payment is the lower of the two, and the loan amount is whatever fits that payment at your rate and term.
What is the 28/36 rule?
It's a common guideline: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt including the mortgage. Many lenders use these thresholds, though some programs allow higher back-end ratios.
How much house can I afford on my income?
It depends on your debts, interest rate, term, and down payment — not income alone. Enter your numbers above to get an estimate based on the 28/36 ratios. Two people with the same income can qualify for very different amounts if one carries more debt.
Will paying off debt increase how much I qualify for?
Often, yes. If the back-end (total debt) ratio is limiting you, reducing monthly debt payments frees up room in your budget for a larger housing payment — and therefore a larger loan.
Is this the same as a pre-approval?
No. This is an estimate using standard ratios. A real pre-approval also considers your credit score, assets, employment history, down payment, and the specific loan program. Use this to plan, then get pre-approved by a lender.