How Much Loan Can I Afford Calculator

Enter your annual income, monthly debts, down payment, and loan details to find out how much loan you can afford. This calculator estimates your maximum home price, loan amount, and monthly mortgage payment based on standard debt-to-income ratio guidelines used by lenders.

Enter your total gross annual household income before taxes.

Include car loans, student loans, credit card minimums, etc.

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Typical down payment is 3%–20% of the home price.

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Enter the expected mortgage interest rate.

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Average U.S. property tax rate is about 1.1%–1.2%.

Leave at 0 if no HOA applies.

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Typically 0.25%–1% of home value per year.

Most lenders prefer a back-end DTI of 36%–43%.

Results

Max Affordable Home Price

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Max Loan Amount

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Est. Monthly Mortgage Payment

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Down Payment Amount

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Front-End DTI (Housing Only)

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Back-End DTI (All Debts)

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Total Interest Paid

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Monthly Payment Breakdown

Frequently Asked Questions

How much loan can I afford based on my salary?

A common rule of thumb is that your total home price should not exceed 2.5–4× your annual gross income. Lenders also use the 28/36 rule: your housing costs should stay below 28% of gross monthly income, and total debt payments below 36%. This calculator uses your actual income and debts to give a more precise figure.

What is a debt-to-income (DTI) ratio and why does it matter?

DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders use two versions: the front-end DTI (housing costs only) and back-end DTI (all debts including housing). Most conventional lenders prefer a back-end DTI of 36% or less, while FHA loans may allow up to 43%–50%.

How much do I need for a down payment?

The minimum down payment depends on the loan type: conventional loans can require as little as 3%, FHA loans require 3.5%, and VA/USDA loans may require 0%. A 20% down payment avoids private mortgage insurance (PMI) and reduces your monthly cost significantly.

How much mortgage can I qualify for?

Qualification depends on your credit score, income, existing debts, down payment, and the lender's guidelines. This calculator estimates affordability using standard DTI ratios. For a firm number, getting pre-qualified or pre-approved by a lender will factor in your credit profile as well.

What is the 28/36 rule for mortgage affordability?

The 28/36 rule states that no more than 28% of your gross monthly income should go to housing costs (front-end DTI), and no more than 36% should go toward all debt payments combined (back-end DTI). Many lenders use this as a baseline guideline when determining loan eligibility.

Does property tax and HOA affect how much I can borrow?

Yes. Property taxes, homeowner's insurance, and HOA fees all count as part of your monthly housing cost in the front-end DTI calculation. Higher additional costs reduce the mortgage payment you can afford within the same DTI limits, which lowers your maximum loan amount.

How does the interest rate affect loan affordability?

A higher interest rate increases your monthly mortgage payment, which reduces the loan amount you can afford under the same income and DTI constraints. For example, a 1% rate increase can reduce your affordability by roughly 10%. Even small rate changes have a significant impact over a 30-year loan.

What is the difference between loan amount and home price?

The home price is the total purchase price of the property. The loan amount is what you borrow after subtracting your down payment. For example, if you can afford a $400,000 home and put 20% down ($80,000), your loan amount would be $320,000.

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