Home Affordability Calculator

The two DTI rules lenders use

Most conventional lenders apply two debt-to-income thresholds. The front-end ratio (housing costs ÷ gross income) should stay at or below 28%. The back-end ratio (all monthly debts including housing ÷ gross income) should stay at or below 36%, though many lenders stretch this to 43% for well-qualified borrowers. This calculator uses the stricter 28%/36% rules and gives you the lower of the two affordability limits.

What counts as a monthly debt?

Include minimum monthly payments on car loans, student loans, credit cards, personal loans, and any other recurring debt obligations. Don't include utilities, subscriptions, or groceries — lenders don't count those in the DTI calculation.

Down payment and PMI

If your down payment is less than 20% of the home price, most conventional loans require Private Mortgage Insurance (PMI), which typically adds 0.5%–1.5% of the loan amount per year to your monthly payment. This calculator doesn't factor in PMI — for a more detailed PMI analysis, use our Mortgage + PMI Calculator.