How to estimate affordability
Use income and existing obligations to set a ceiling.
1
Enter gross income
Use income before tax, including stable regular income.
2
Add existing debts
Include minimum payments on cards, car loans and student loans.
3
Choose a conservative DTI
Test 36% and a lower figure to see how much breathing room you keep.
What does this tool do?
Lenders look at income, existing obligations and the loan-to-value ratio. This calculator uses a simple debt-to-income ceiling to estimate a maximum monthly payment and the loan amount that payment supports.
The Formula
Max payment = Gross monthly income × DTI ceiling − Existing debtsFrequently Asked Questions
What debt-to-income ratio do lenders use?
Many lenders look for total debt payments below 36% to 43% of gross income, but rules vary by country and loan type.
Should I borrow the maximum?
Usually not. Leave room for rate rises, repairs and lifestyle costs; the maximum is a ceiling, not a target.