Calculate your maximum home price based on income, debts, down payment, and interest rate.
Verifies that annual income has been entered. The calculator requires a positive gross annual income to compute affordability. This figure is your pre-tax household income.
Lenders typically want your total monthly debt payments (including the new mortgage) to stay at or below 36% of gross monthly income. The 36% rule is the most common threshold for conventional loans.
Your housing costs (mortgage principal, interest, taxes, insurance) should not exceed 28% of gross monthly income. This is the front-end ratio, a key qualifying metric for lenders.
A down payment of at least 20% avoids Private Mortgage Insurance (PMI), which typically adds 0.5–1% of the loan amount annually to your payment. Smaller down payments trigger PMI, reducing affordability.
The mortgage interest rate must be between 0.5% and 15%. Unrealistic rates will skew the calculation. Current market rates typically range from 3–8%.