Free US Mortgage Tool

Mortgage Affordability
Calculator

Estimate monthly PITI, DTI, mortgage insurance, a planning price ceiling, and a higher-rate scenario for conventional, FHA, and VA loans.

DTI Ratio Conventional · FHA · VA PMI / MIP Max Home Price Stress Test Monthly PITI Breakdown

Your Details

Income & Debts
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Loan Details
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Monthly Costs
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Stress Test
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↓ Methodology ↓
How this calculator works — formulas & sources
Monthly Principal & Interest (P&I)
M = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
L = loan · r = monthly rate · n = term × 12
The standard amortization formula converts the financed balance into principal and interest. FHA adds 1.75% upfront MIP. For a non-exempt first-use VA borrower, this estimate applies 2.15% below 5% down, 1.5% from 5% down, and 1.25% from 10% down, calculated on the loan amount. Funding-fee exemptions and subsequent-use rates are not inferred. FHA vs Conventional
Front-End DTI
Front DTI = Monthly PITI ÷ Gross Monthly Income
The 28% and 36% figures are planning benchmarks, not approval rules. PITI includes principal, interest, property tax, insurance, mortgage insurance, and HOA costs. Underwriting also considers credit, reserves, loan program, and automated-underwriting findings. Rental ROI Calculator · FHA vs Conventional · Mortgage vs Rent
Stress Test
Stress DTI = back-end DTI recalculated at (Rate + Buffer)
The default +2 percentage-point buffer is a user-adjustable scenario, not a CFPB qualification rule. It shows payment sensitivity if a future or adjustable rate is higher. Test several rate and price combinations rather than treating one scenario as a forecast. Mortgage vs Rent
PMI & MIP
Conventional PMI estimate = base loan × entered annual rate ÷ 12
FHA Upfront MIP = base loan × 1.75%
FHA Annual MIP estimate = base loan × 0.50–0.55% ÷ 12
VA Funding Fee = base loan × applicable first-use rate
PMI is an illustrative 1% annual estimate; actual pricing depends on credit, LTV, insurer, and lender. FHA annual MIP can vary with term, base loan amount, and LTV. Confirm the figures on the lender's Loan Estimate and compare the cash requirement with the closing-cost estimator. · FHA vs Conventional
Back-End DTI
Back DTI = (PITI + All Monthly Debts) ÷ Gross Monthly Income
There is no universal 43% legal ceiling for all Qualified Mortgages. The CFPB's General QM definition uses price-based thresholds, while lenders and loan programs apply their own underwriting rules. Use the editable DTI cap only as a planning assumption. Rental ROI Calculator · Mortgage vs Rent
Maximum Home Price
Available Housing = Gross Monthly Income × Selected DTI − Monthly Debts
Price is solved iteratively with tax, insurance, mortgage insurance, and program fees recalculated at each step
This is a planning ceiling, not a preapproval. Adjust the DTI cap to lender guidance and include the purchase cash required by the closing-cost estimator. If you're pricing a rental purchase instead, cross-check with the Rental ROI Calculator · MACRS Depreciation
Official sourcesCFPB: Qualified Mortgages · CFPB: ability-to-repay rule · HUD: FHA mortgage-insurance premiums · VA: funding fees · CFPB: PMI cancellation

Affordability Results

Total Monthly PITI
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⬤ Calculating…
DTI Ratios
Front-End DTI (housing only) —
0%20%40%60%
Back-End DTI (all debts) —
0%20%40%60%
Max Home Price
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at selected planning DTI
Stressed DTI
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at +2% rate

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How it works

The numbers that shape affordability

Lenders evaluate income, debts, credit, assets, property details, and loan program—not one DTI number. Compare the upfront cash requirement with the closing-cost estimator.

FRONT-END DTI
Housing costs only

Front-end DTI includes only the proposed housing payment — principal, interest, property tax, homeowners insurance, and HOA. Programs and underwriting systems may use housing ratios as one factor, but no single 28% or 31% cutoff guarantees or prevents approval. Confirm the applicable standard with the lender evaluating the complete file. FHA vs Conventional

BACK-END DTI
All debts combined

Back-end DTI combines the proposed housing payment with recurring monthly debts. It is important, but it does not determine approval by itself. The CFPB's General QM rule does not impose one universal 43% ceiling, and lender or program requirements can be lower or higher. Use the calculator's editable cap as a planning assumption, then confirm it with a lender. FHA vs Conventional

PMI & MIP
The cost of a small down payment

Conventional loans commonly require PMI above 80% LTV. FHA loans charge upfront and annual MIP, with the annual rate and duration depending on the loan's details. Eligible VA borrowers do not pay monthly PMI, although a funding fee may apply. Include financed fees and cash costs in the closing-cost estimate. · FHA vs Conventional

LOAN TYPES
Conventional vs FHA vs VA

Conventional, FHA, and VA pricing depends on the complete borrower, property, and loan scenario. FHA and VA have program-specific insurance or funding-fee rules; some conventional programs permit small down payments, while eligible VA borrowers may finance 100%. Compare complete written offers over the period you expect to keep the loan. Rental ROI Calculator · FHA vs Conventional · Cap Rate Explained

STRESS TEST
Can you handle a rate increase?

The higher-rate scenario is a personal resilience test. It is not a CFPB approval formula and does not model an ARM's complete note terms. Try several buffers to see how a higher payment would affect your back-end DTI and cash reserve. Mortgage vs Rent

MAX HOME PRICE
What the math actually allows

The planning price ceiling solves backwards from your selected DTI cap. At every candidate price it recalculates property tax, financed program fees, mortgage insurance, and the loan payment. It is still not a lender preapproval; credit, reserves, property type, and loan limits remain outside this model. Check the related closing costs before deciding what is affordable. MACRS Depreciation

FAQ

Common questions

How much house can I afford on a $100,000 salary?
Salary alone cannot produce a reliable price: monthly debts, down payment, rate, tax, insurance, HOA, mortgage insurance, and the lender's underwriting all matter. Enter those values above and treat the result as a planning range, then add the cash shown by the closing-cost estimator. Mortgage vs Rent
What is DTI and what's the maximum allowed?
Front-end DTI divides proposed housing costs by gross monthly income. Back-end DTI adds recurring monthly debts. There is no single maximum that applies to every borrower or every Qualified Mortgage. Loan program, lender overlays, automated underwriting, credit, and reserves affect the acceptable result, so the calculator makes its planning cap editable. FHA vs Conventional
What is PMI and how do I avoid it?
PMI protects a conventional lender when the loan has higher LTV. Price depends on the borrower and policy, so this calculator uses an explicit estimate. For many eligible mortgages, a borrower may request cancellation at 80% of original value and automatic termination generally occurs at 78% if statutory conditions are met. VA loans do not use monthly PMI, but a funding fee may apply; compare it with your closing costs. · FHA vs Conventional
What's the difference between FHA and conventional loans?
FHA insures qualifying lender-made loans and generally permits lower minimum down payments and more flexible credit profiles, but it charges upfront and annual MIP. Conventional financing follows investor and lender rules and may offer lower insurance costs or cancellable PMI for some borrowers. Neither is always cheaper: compare rate, fees, mortgage insurance duration, and cash to close for the same scenario. · FHA vs Conventional
Should I get a 15-year or 30-year mortgage?
A 15-year term usually repays principal faster and can reduce total interest, but its required monthly payment is higher. A 30-year term lowers the required payment and preserves flexibility. Compare actual offers at the same time, test both terms above, and decide whether the payment difference is more useful for reserves, debt reduction, or investing. Mortgage vs Rent
What are closing costs and how much should I budget?
Closing costs include lender charges, third-party services, government taxes and fees, and prepaid items. They are separate from the down payment, while financed FHA or VA program fees increase the loan balance instead of necessarily increasing cash due. Amounts depend on the property address, loan, providers, and contract, so use the closing-cost estimator and compare it with official Loan Estimates. · Mortgage vs Rent