Mortgage Affordability Calculator
Estimate a mortgage and home-price range from the income, debts, down payment, housing costs, rate, and term you enter. Capacity limits are planning assumptions, not lender approval criteria.
Treat affordability as a range, not a borrowing decision
The result translates the income, debts, target ratios, rate, and term you choose into a modeled payment capacity and home-price estimate. Changing one selected ratio can move the result substantially.
Tradeoffs to weigh
A larger target payment can increase the modeled purchase price but leave less room for income disruption, maintenance, transport, childcare, or savings. A lower estimate may preserve flexibility rather than indicate a weaker application.
What the model assumes
Income, recurring debts, down payment, housing costs, and capacity limits are user inputs. The engine does not verify income, credit, property value, expenses, program rules, or lender affordability policy.
Checks before relying on it
Rework the scenario with conservative costs and a higher rate, then compare it to your own budget. Ask a lender which income, debt, property, and product assumptions they will use before treating a result as actionable.
Continue with estimate a mortgage paymenttest a higher interest ratelearn what DTI meansreview country mortgage models.
Understanding front and back DTI
Debt-to-income (DTI) concepts are commonly used in some mortgage markets, but definitions and underwriting treatment vary by country, lender, and program. The front-end DTI compares modeled housing costs to gross income; the back-end DTI also includes recurring debts you enter. These labels are planning assumptions, not universal underwriting rules.
Assumptions and methodology
This calculator models affordability using the Mortgage Decision Engine's capacity calculations. It applies the DTI limits you choose to the income and debts you enter, then estimates a loan amount under the selected rate, term, payment frequency, and country model.
Affordability ranges are estimates and not lender underwriting. DTI thresholds are assumptions rather than universal policy.