Affordability Calculator
Calculate your Debt-to-Income ratio and preview the mortgage you could qualify for. By Xavier C.H. · Last reviewed: May 26, 2026
Your Debt-to-Income (DTI) ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to decide whether to approve loans, what interest rate to offer, and how much house you can afford. Most lenders want DTI under 43% for mortgages; under 36% gets you the best rates.
Calculate your DTI
Your DTI ratio:
30%
Good — most lenders will approve you for a mortgage.
What your DTI means
| DTI Range | Lender View | What it means |
|---|---|---|
| Under 28% | Excellent | Best rates available, easy approval for mortgages |
| 28-36% | Good | Conventional mortgage approval likely, competitive rates |
| 36-43% | Acceptable | Mortgage approval possible but rates may be higher |
| Over 43% | Concerning | Most conventional lenders will decline; FHA may still approve |
| Over 50% | High risk | Most lenders will decline; focus on debt reduction first |
Source: CFPB DTI guidance
How much house could you afford?
A common rule of thumb: your housing costs (mortgage + property taxes + insurance + HOA) should stay under 28% of gross monthly income. Combined with non-housing debt, total DTI should stay under 36-43%.
Quick approximation for a 30-year mortgage at 7% APR (typical 2026 rates):
- $5,000/month income, no other debt → roughly $200K-$240K mortgage range
- $7,500/month income, no other debt → roughly $300K-$360K mortgage range
- $10,000/month income, no other debt → roughly $400K-$480K mortgage range
If you carry significant non-housing debt, those numbers drop fast. This is one reason aggressive debt payoff before buying a home dramatically increases your purchasing power. Eliminate $500/month of credit card minimums and you potentially qualify for $75K-$100K more in mortgage.
How to lower your DTI
- Pay down high-interest debt first — use our debt payoff calculator to plan the fastest path
- Avoid taking on new debt in the 6-12 months before applying for a mortgage
- Increase income — side income counts for DTI if it has 2+ years of history
- Consolidate high-rate cards into a lower-rate personal loan — see our consolidation guide
Frequently asked questions
What counts as "debt" for DTI calculation?
All monthly minimum payments on: credit cards, auto loans, student loans, personal loans, current mortgage or rent, child support, alimony, and HOA fees. Does NOT count: utilities, groceries, gas, insurance (except auto), subscription services, or one-time payments.
Is gross or net income used for DTI?
Gross income (before taxes) is what lenders use. This is per FNMA/FHLMC guidelines and CFPB consumer guidance. Some financial advisors recommend you also calculate "net DTI" for personal budgeting, but lender decisions use gross income.
What DTI do FHA loans require?
FHA loans typically allow DTI up to 43%, sometimes higher (50%+) with compensating factors like high credit score, large down payment, or significant reserves. Conventional loans typically cap at 43-45% maximum. VA loans have no strict DTI maximum but 41% is considered the standard.
Does paying off a credit card immediately improve my DTI?
Within 1-2 billing cycles after the lower balance is reported. Once the balance is zero or minimum payment is removed, DTI drops accordingly. This is one of the fastest ways to qualify for better mortgage terms.