What Is a Home Affordability Calculator?
A home affordability calculator is a financial tool that helps you estimate a realistic home price based on your income, monthly debts, and down payment. It uses the Debt-to-Income (DTI) ratio, a key metric lenders use, to determine how much house you can comfortably afford, empowering you to set a smart budget for your home search.
How to Use This Calculator
- Enter your total annual gross (pre-tax) income.
- Input your total monthly debt payments (car loans, student loans, credit cards).
- Enter your planned down payment amount.
- Adjust the DTI slider to match your financial comfort level.
- The calculator will instantly show your recommended home price and estimated monthly payment.
How to Interpret Your Home Affordability Results
- Conservative (30% DTI): A comfortable budget with plenty of room for savings, unexpected expenses, and other financial goals.
- Moderate (36% DTI): A standard and generally safe level of debt that most lenders view favorably. This is a common target for many homebuyers.
- Aggressive (43% DTI): This is typically the maximum DTI ratio that most lenders will allow. A budget at this level may feel tight and leaves little room for financial error.
Ready to Calculate Your Payment?
Once you have an affordability target, use our Mortgage Calculator to see a detailed breakdown of the monthly payment (PITI) for a specific home price.