Mortgage Calculator How Much Can I Borrow
Estimate how much you can borrow for a mortgage based on your annual income, monthly debts, down payment, interest rate, and loan term.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Mortgage Calculator: How Much Can I Borrow
- Enter your annual income (e.g., $80,000). This is your gross yearly earnings.
- Enter your monthly debts (e.g., $500). Include car loans, credit cards, student loans, etc. Default is $0.
- Enter your down payment (e.g., $20,000). This is cash you’ll put toward the home. Default is $0.
- Enter the interest rate (e.g., 6.5%). Use the annual percentage rate (APR). Must be between 0% and 30%.
- Enter the loan term in years (e.g., 30). Typical terms are 15 or 30 years. Must be 1–50 years.
- Set your maximum DTI ratio (default 43%). This is the max percentage of monthly income allowed for debts. Adjust if needed (1–100%).
- Click Calculate. The result shows the maximum home price you can afford, including your down payment.
What the calculator does: It uses your income, debts, down payment, interest rate, loan term, and DTI limit to compute the maximum loan amount. It then adds your down payment to show the total affordable home price.
Tip: All monetary values are in US dollars ($). Enter numbers only (no commas or symbols). If you see an error, check that required fields (income, rate, term) are filled and positive.
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Frequently Asked Questions
Debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts. Lenders use it to assess your ability to manage monthly payments. A lower DTI indicates a better balance.
A larger down payment reduces the loan amount needed and can improve your loan-to-value ratio, potentially leading to better interest rates and lower monthly payments.
Use the current average mortgage rate for your loan type (e.g., 30-year fixed). You can check rates from major lenders or use a typical rate like 6-7% for estimation.
