Before you fall in love with a home, you need to know what you can actually afford. Lenders use specific debt-to-income ratios to determine your maximum mortgage — and those numbers are often very different from what you might intuitively expect. This calculator uses the same 28/36 rule that banks a...
Enter your Annual Gross Income — your total pre-tax income from all sources.
Enter Monthly Debt Payments — car loans, student loans, credit card minimums. Do NOT include current rent.
Enter your Down Payment — the cash you have saved. Leave blank or enter 0 if none.
Adjust the Interest Rate and Loan Term if needed — defaults are set to typical values.
Your Maximum Home Price appears instantly along with the buying power range and DTI analysis.
A couple earns $120,000 combined annual income ($10,000/month gross). Their monthly debts are $800 (car loan + student loan). They have $60,000 saved for down payment. At 7% interest for 30 years: Max mortgage payment = $10,000 × 28% = $2,800/month. Max loan = $2,800 × 150.31 = $420,868. Max home price = $420,868 + $60,000 = $480,868. Back-end DTI = ($2,800 + $800) / $10,000 = 36% — right at the limit, so this is the maximum sustainable budget.
| NAME | FORMULA | DESCRIPTION |
|---|---|---|
| Max Monthly Payment | Max Payment = Gross Monthly Income × 0.28 | 28% front-end ratio — maximum housing payment |
| Max Loan Amount | Max Loan = Max Payment × ((1+r)ⁿ - 1) / (r × (1+r)ⁿ) | Maximum loan supportable at the given rate and term |
| Max Home Price | Max Price = Max Loan + Down Payment | Total purchasing power including down payment |
| Back-End DTI | DTI = (Mortgage + All Debts) / Gross Monthly Income × 100 | Should stay at or below 36% for conventional loans |
| LTV Ratio | LTV = Loan Amount / Home Value × 100 | Below 80% avoids PMI; lenders prefer LTV under 95% |
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Last updated: April 25, 2026 · Formula verified by EagleCalculator team · Eagle-eyed accuracy for every calculation.