The Smart Calc

Mortgage Affordability Calculator

Find maximum home purchase price based on income, monthly debts, down payment, and DTI limit.

Parameters

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Results

Maximum Affordable Home Price

$404,685.64

Maximum Borrowing Limit

$344,685.64

Max Total Housing Payment

$2,700.00

Max Principal & Interest Payment

$2,178.65

Estimated Monthly Tax

$404.69

Estimated Monthly Insurance

$116.67

Max Debt-to-Income (DTI) Limit (%)

36%

Important Estimation Disclaimer

This calculation provides an informational estimate only. Actual mortgage pre-approval, maximum borrowing capacity, required down payment, and monthly payments depend on individual lender underwriting criteria, credit score, debt-to-income (DTI) requirements, localized property taxes, insurance premiums, and specific loan program guidelines.

Determining Home Affordability

How It Works

Calculates maximum allowed housing obligation by applying DTI limits to gross monthly income minus existing debts, then inverts loan formulas to solve for max home purchase price.

How to Use

1. Enter gross income and existing monthly debt payments. 2. Input down payment, interest rate, term, and target DTI ratio. 3. View max affordable home purchase price.

Understanding the Results

Max Home Price represents the highest property value you can purchase while remaining within selected DTI boundaries.

Affordability FAQ

FAQ

What is Debt-to-Income (DTI) ratio?

DTI is the percentage of gross monthly income spent on total monthly debt obligations including your proposed mortgage.

What is standard DTI limit for conventional mortgages?

Standard conventional mortgage guidelines generally recommend keeping total DTI at or below 36% to 43%.