How this calculator works
Lenders typically check two ratios: housing costs as a share of gross income (often around 28%) and total debt payments as a share of gross income (often 36–44%). This calculator applies both, reserves part of the housing budget for property tax and insurance, and converts the remaining payment into a maximum loan using your rate and term. Adding your down payment gives the home price.
Read the result as a ceiling
The figure is what a lender may approve, not what is comfortable. Leave room for maintenance, savings and the rest of life. Many buyers target a price 10–20% below their approval amount.
Frequently asked questions
Why does my monthly debt reduce affordability so much?
Every unit of monthly debt payment reduces the payment lenders allow for housing, which is multiplied over the whole loan term.
Does my credit score change this?
Indirectly — a better score usually earns a lower rate, which raises the loan a payment can support.
What ratio should I pick?
36% is a conservative default. Some loan programmes allow higher ratios, but higher isn't necessarily safer.
Results are estimates for educational purposes and depend on the assumptions you enter. They are not an offer of credit or financial advice. Last reviewed October 2026.