Find the largest loan your income can support. Adjust debts, rates, and term for accuracy. Download results, share numbers, and plan confidently every month.
Numbers can include commas. Use your lender’s DTI target and realistic housing costs.
These examples show how DTI limits and monthly costs can change borrowing capacity.
| Monthly income | Max DTI | Existing debts | Monthly costs* | Rate | Term | Estimated max loan | Est. max home price (20% down) |
|---|---|---|---|---|---|---|---|
| $6,500 | 43% | $650 | $450 | 6.25% | 30y | $222,505 | $278,131 |
| $8,000 | 45% | $1,200 | $600 | 5.75% | 20y | $256,380 | $320,475 |
| $5,000 | 36% | $400 | $350 | 7.00% | 15y | $116,819 | $146,023 |
DTI measures monthly debt as a share of gross income. Many programs target 36% to 43% back-end DTI, while some allow higher. If income is 6,500 and the limit is 43%, the total debt budget is 2,795. After 650 in existing debts, the housing budget becomes 2,145 before taxes, insurance, and fees.
Borrowing capacity depends on the principal-and-interest payment you can support after escrows. Property taxes, insurance, HOA dues, PMI, and other fees behave like fixed monthly debt. A 450 monthly add-on reduces available P&I by 450, which can cut the estimated loan amount by tens of thousands. Accurate escrows usually matter more than small DTI tweaks.
Amortization makes affordability rate-sensitive. On a 30-year term, a 1% rate increase often reduces a payment-based loan estimate by roughly 8% to 12%, depending on the starting rate. The sensitivity table and chart help you compare outcomes at your DTI limit across nearby rates, so you can see how much risk a rate move creates.
Longer terms lower the payment and can increase the payment-based principal you can carry. Moving from 20 years to 30 years can raise the estimated maximum loan, but total interest paid generally rises. If qualification is the priority, longer terms may help; if lifetime cost is the priority, shorter terms may be better.
Some lenders apply a front-end housing ratio, often near 28% to 31%, to limit housing costs even when back-end DTI permits more. Enabling the front-end cap makes the estimate more conservative. For planning, leave a 5% buffer under your target DTI and include a small reserve for maintenance. Aim for a payment that remains comfortable through changing expenses.
Include required monthly payments for credit cards, auto loans, student loans, personal loans, and support obligations. Exclude utilities and groceries unless they are billed as fixed debts. Use the amount that appears on your statement or credit report.
Use gross monthly income because DTI guidelines are typically based on pre‑tax income. If your pay varies, use an average of recent months. For self‑employed borrowers, use a conservative income figure consistent with documented earnings.
A front-end cap limits housing costs as a percentage of income, often around 28% to 31%. If your back-end DTI allows more, the cap can still reduce the housing budget, lowering the maximum principal-and-interest payment and the estimated loan amount.
It is a planning estimate that combines the calculated loan amount with your down payment assumption. Actual pricing depends on appraisal, program limits, closing costs, and local taxes or insurance. Use it to set a range, then confirm with lender quotes.
A negative value means existing debts and housing add-ons exceed your allowed budget at the selected DTI limit. Reduce monthly costs, pay down debts, increase income, or choose a different DTI target. Recheck using realistic escrows and fees.
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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.