Lenders use gross income and existing debt payments to cap affordable housing costs.
Annual household income before taxes.
Car, student, credit card minimums — not utilities.
Available cash and expected mortgage rate.
Affordable home price with DTI breakdown.
$100,000 income, $500/mo debts, $50,000 down, 6.5%, 30 years.
Actual max depends on taxes, insurance, and PMI.
Using net income
Fix: Lenders qualify on gross (pre-tax) income.
Ignoring PMI with low down
Fix: PMI is auto-applied when down payment is under 20%.
Estimate how much house you can afford based on income, debts, and DTI guidelines.
Pre-tax household income
Optional second earner
Car, student loans, credit card minimums
Housing costs & DTI limits
Annual % of home value
Front-end limit (often ~28%)
Back-end limit (often ~36%)
Result
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Enter income, debts, and loan details, then click Calculate.