How do monthly debts affect how much house I can buy?

Every $100 in monthly debt obligations reduces your maximum mortgage borrowing capacity by roughly $14,000 to $18,000 at current interest rates.

Updated: August 2026 • Verified v1.2

Home Affordability & Debt-to-Income (DTI) Calculator

Finance & MathPopular

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Max_Monthly_Mortgage = (Gross_Monthly_Income * DTI_Rule) - Monthly_Debts; Max_Loan = Present_Value(Max_Monthly_PI, Rate, Term); Price = Max_Loan + Down_Payment

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Understanding Your Results

Calculates max home purchase price, qualifying mortgage loan amount, maximum allowable monthly PITI payment, and front-end DTI percentage.

Practical Guidance & Next Steps

Lenders typically cap total monthly debt payments at 36% (Conventional) to 43% (FHA) of gross monthly income.

What is this?

A mortgage underwriting utility that calculates home purchasing power and debt-to-income limits.

How does it work?

1. Enter your annual gross household income and down payment cash. 2. Enter monthly debt obligations (car, loans, cards) and interest rate. 3. View your maximum qualifying home price, mortgage loan, and monthly payment limit.

Why use it?

Prevents falling in love with houses outside your lender qualification ceiling.

Technical Scope & Calculation Limitations

Estimates borrowing power based on standard fixed-rate mortgage underwriting rules.

Frequently Asked Questions

The 28/36 rule states that your household housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income, and total debts (housing + car loans + credit cards) should not exceed 36%.

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