Does this include PMI/MIP?

No. Add PMI/MIP to insurance if applicable to reduce max P&I accordingly.

Will a lender approve this exact number?

No. This is an estimate. Lenders consider credit, income verification, reserves, and overlays.

What DTI should I use?

43% is a common back-end cap. FHA/VA/USDA may allow different ratios. Use your lender’s guidance.

Adjust for ARM or interest-only?

Rates/terms differ; this assumes fixed amortization. For IO/ARM, payments differ—adjust accordingly.

Can I model higher taxes/HOA?

Yes—raise taxes/insurance/HOA to see how they reduce your max loan/home price.

finance calculator

Mortgage Preapproval Calculator

Estimate the maximum loan and home price you may qualify for using income, debts, DTI limit, rate, term, taxes, insurance, HOA, and down payment.

Results

Max DTI allowance (housing + debts): $3,870
Max housing budget (PITI + HOA): $3,270
Max principal & interest: $2,800
Estimated max loan: $442,990
Estimated max home price: $553,738

How to use this calculator

Enter gross monthly income and other monthly debts.
Enter DTI limit, interest rate, and term.
Enter estimated monthly taxes, insurance, HOA, and down payment percentage.
See max P&I, estimated max loan, and max home price.

Inputs explained

Gross monthly income: Pre-tax monthly income.
Other monthly debts: Auto loans, cards, student loans, etc. for DTI.
Max DTI (%): Back-end DTI cap (e.g., 43% conventional baseline).
Rate/Term: Rate and term for the mortgage you're modeling.
Taxes/Insurance/HOA: Monthly estimates for property taxes, homeowners insurance, and HOA dues.
Down payment (%): Percent down to translate max loan into home price.

How it works

Total DTI allowance = income × DTI%. Housing allowance = allowance − other debts.

Max P&I = housing allowance − (taxes + insurance + HOA). Loan derived from P&I using rate/term.

Max home price = loan ÷ (1 − down payment%).

Formula

DTI allowance = Income × DTI%
Housing allowance = DTI allowance − Other debts
Max P&I = Housing allowance − (Taxes + Insurance + HOA)
Loan = Max P&I × discount factor at Rate/Term
Home price ≈ Loan ÷ (1 − Down%)

When to use it

Prepping for preapproval by estimating max loan/home price.
Checking how debt changes or HOA/taxes affect affordability.
Comparing different down payments or rate scenarios.

Tips & cautions

Lenders use full underwriting and may have overlays; this is a quick DTI-based estimate.
Be conservative with taxes/insurance/HOA so you don't overshoot budget.
Lower debts or increase down payment to raise affordability; rate drops help too.
Does not include PMI/MIP; add to insurance if applicable.
Assumes fixed-rate fully amortizing loan; ARM or IO terms differ.
DTI thresholds vary by program/credit; this is a generic estimate.

Worked examples

$9k income, $600 debts, 43% DTI, 6.5%/30yr, $350 taxes, $120 ins, $0 HOA, 20% down

DTI allowance ≈ $3,870
Housing allowance ≈ $3,270
Max P&I ≈ $2,800
Max loan ≈ $443,500
Max home price ≈ $554,400

$7k income, $1,000 debts, 40% DTI, 6%/30yr, $400 taxes, $150 ins, $75 HOA, 10% down

DTI allowance = $2,800
Housing allowance = $1,800
Max P&I ≈ $1,175
Max loan ≈ $195,000
Max home price ≈ $216,700

Deep dive

This mortgage preapproval calculator uses your income, debts, DTI limit, rate, term, and housing costs to estimate max principal & interest, loan amount, and home price.

Use it to gauge what you might qualify for before talking to a lender and to see how taxes, HOA, or debts change affordability.

FAQs

Does this include PMI/MIP?: No. Add PMI/MIP to insurance if applicable to reduce max P&I accordingly.
Will a lender approve this exact number?: No. This is an estimate. Lenders consider credit, income verification, reserves, and overlays.
What DTI should I use?: 43% is a common back-end cap. FHA/VA/USDA may allow different ratios. Use your lender’s guidance.
Adjust for ARM or interest-only?: Rates/terms differ; this assumes fixed amortization. For IO/ARM, payments differ—adjust accordingly.
Can I model higher taxes/HOA?: Yes—raise taxes/insurance/HOA to see how they reduce your max loan/home price.

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Estimate only. Actual preapproval depends on full underwriting, credit, income, assets, and program rules. Confirm with a licensed lender.