How this calculator estimates affordability
This calculator uses the debt-to-income (DTI) ratio approach lenders commonly use to gauge how large a monthly payment you can reasonably support, then works backward to estimate a maximum home price.
The formula
Maximum total monthly debt payment = Monthly Gross Income × chosen DTI limit. Subtracting your other monthly debts leaves the maximum mortgage payment, which is then converted to a maximum loan amount using the standard mortgage payment formula for your interest rate and term, and your down payment is added on top.
This tool is for general educational and planning purposes only. Actual mortgage approval depends on your credit score, lender guidelines, property taxes, insurance, HOA fees, and other factors not included here, so treat this as a starting estimate, not a loan pre-approval.