Loan Tax CalculatorAffordability Calculator
Determine how much house you can afford based on your income, existing debts, and desired monthly payment. Uses standard debt-to-income ratios.
Estimated maximum home price
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- Max monthly payment
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- Max loan amount
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- Resulting back-end DTI
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Uses the 28/36 rule: housing up to 28% of gross income and total debt up to 36%. Principal and interest only — taxes, insurance, and PMI reduce what you can borrow. Not a loan approval.
Results are planning estimates based on the formula shown below. They are not a quote, a loan approval, or tax advice.
Worked example
- Gross Annual Income
- $120,000
- Monthly Income
- $10,000
- Other Debt
- $400/month
- Target DTI
- 36% (back-end)
- Available for Mortgage
- $3,200/month
- Affordable Loan Amount
- ~$550,000
How it works
Debt-to-Income (DTI) = (Total Monthly Debt Payments / Gross Monthly Income) × 100. Front-end ratio (housing costs) typically capped at 28% of income; Back-end ratio (all debt) typically capped at 36-43% of income. Maximum Affordable Home = (Gross Monthly Income × Acceptable DTI% - Other Monthly Debts) / Monthly Rate Factor.