How this calculator works
Your gross monthly income times the debt-to-income limit is the total you can spend on debt. Existing debts and estimated taxes and insurance come off, and what's left is the principal-and-interest payment you can afford. That payment is converted back into a loan amount at your rate and term.
Worked example
With the example values below: Maximum loan, $415,000 (principal & interest of $2,554 a month). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Annual pre-tax income | $95,000 |
| Monthly debt payments | $400 |
| Interest rate | 6.25% |
| Loan term | 30 years |
| Est. taxes & insurance / month | $450 |
| Max debt-to-income | 43% |
How lenders size your mortgage
The maximum loan comes from your debt-to-income ratio. Lenders take your gross monthly income, multiply it by their DTI limit, and subtract your existing monthly debts. What's left is the most you can spend on housing. Taking out estimated property tax, homeowners insurance and any PMI or HOA dues leaves the principal-and-interest payment, which is converted into a loan amount at your rate and term.
With $8,000 of gross monthly income, a 43% DTI limit and $600 of other debts, $2,840 is available for housing. If $500 of that goes to taxes and insurance, $2,340 remains for principal and interest, which supports a loan of about $370,000 at 6.5% over 30 years.
Typical DTI limits by loan type
These are common guidelines; each lender sets its own overlays, and automated underwriting can approve higher ratios for strong applications.
| Loan type | Typical maximum DTI |
|---|---|
| Conventional | 36% to 45%, up to 50% with strong credit and reserves |
| FHA | 43%, sometimes up to about 57% with compensating factors |
| VA | 41% guideline, with residual income also checked |
| USDA | 29% housing / 41% total |
| Jumbo | Often 43% or lower |
Ways to borrow more, or need less
- Pay off or pay down small debts before applying, especially car loans and cards with high minimums.
- Add a co-borrower whose income counts toward the application.
- Choose a longer term, which lowers the payment per dollar borrowed.
- Compare rates; a quarter-point lower rate raises the loan you qualify for by about 2% to 3%.
- Increase your down payment so you need to borrow less for the same home.
Borrowing limit vs. comfortable payment
The largest loan you can get isn't necessarily the right one. Lenders use gross income, but you pay the mortgage from take-home pay after tax, retirement savings and health insurance. Check the payment against your real budget, and use the how much house can I afford calculator to see a comfortable price as well as the maximum. The mortgage income calculator works the other way, from a home price to the income you need.
Frequently asked questions
How much can I borrow for a mortgage on my salary?
A common rule of thumb is about 4 to 5 times your annual gross income with few other debts, depending on rates. More precisely, lenders cap total debt payments at about 36% to 43% of gross monthly income, then convert what's left for principal and interest into a loan amount.
How much can I borrow with a $75,000 salary?
Gross monthly income is $6,250. At a 36% DTI with no other debts, $2,250 is available for housing. After about $450 of taxes and insurance, $1,800 of principal and interest supports roughly a $285,000 loan at 6.5% over 30 years.
Do lenders use gross or net income?
Gross income, before taxes and deductions. That's why a lender's maximum can feel tight in practice, since your actual payment comes out of take-home pay.
Does my credit score affect how much I can borrow?
Indirectly. A higher score gets a lower rate, and a lower rate means a smaller payment per dollar borrowed, so you qualify for a larger loan at the same DTI. Some programs also allow higher DTI ratios for borrowers with strong scores.
What debts count toward debt-to-income?
Recurring obligations that appear on your credit report or are legally required: car loans, student loans, minimum credit card payments, personal loans, child support and alimony, plus the new housing payment. Utilities, groceries and insurance other than homeowners usually aren't counted.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.