Mortgage Affordability with Debt Ratios
Calculate maximum mortgage amount based on income, debts, and lender debt-to-income ratios
About this calculator
This mortgage affordability calculator determines the maximum mortgage amount you can qualify for based on your income, existing debts, and lender debt-to-income ratio requirements. It helps you understand your borrowing capacity before house hunting by analyzing your financial profile against typical lending standards. The calculator considers both front-end ratios (housing costs only) and back-end ratios (total debt obligations) to provide realistic mortgage estimates that align with lender approval criteria.
How to use
Enter your gross monthly income, current monthly debt payments, and desired debt-to-income ratio limits. The calculator will analyze your financial capacity and display the maximum mortgage payment and loan amount you can afford while staying within safe debt ratio guidelines.
Frequently asked questions
What debt-to-income ratio do most lenders prefer?
Most conventional lenders prefer a back-end debt-to-income ratio of 36% or lower, though some allow up to 43-45% with strong credit.
What debts should I include in the calculation?
Include all monthly debt obligations: credit cards, student loans, car payments, personal loans, and other recurring debt payments.
Does this include property taxes and insurance?
The calculator typically factors in principal, interest, taxes, and insurance (PITI) when determining your total housing payment and debt ratios.