Mortgage Pre-Approval Calculator

Estimate your maximum home price and loan amount

Loan type (sets typical DTI limits)

Gross annual income ($)

Other monthly debt payments ($)

Down payment ($)

Interest rate (%)

Loan term (years)

Property tax rate (%/year of home value)

Estimated monthly homeowners insurance ($)

Front-end DTI limit (% of income, housing only)

Back-end DTI limit (% of income, all debts)

Frequently Asked Questions

How is mortgage pre-approval amount calculated? ▼

Lenders use debt-to-income (DTI) ratio limits — the classic '28/36 rule' caps your housing payment at 28% of gross monthly income (front-end ratio) and your total debt payments (housing + car loans, credit cards, student loans, etc.) at 36% of gross monthly income (back-end ratio), though many lenders allow back-end ratios up to 43% or even 50% with strong compensating factors like a high credit score or large cash reserves.

What counts as 'other monthly debts'? ▼

Recurring debt payments that show up on your credit report — car loans, minimum credit card payments, student loan payments, personal loans, and any other loan payments. It doesn't include normal living expenses like groceries, utilities, or subscriptions, which aren't part of the DTI calculation.

Why does the calculator need my property tax rate and insurance estimate? ▼

Your maximum monthly PAYMENT (not just principal & interest) is what DTI limits actually cap — that payment includes property taxes and homeowners insurance (and HOA dues, if any) alongside principal and interest. Backing out taxes and insurance from your maximum housing payment gives the portion left over for principal and interest, which determines your actual maximum loan amount.

Is this the same as what a lender will actually approve me for? ▼

No — this is an estimate using standard industry DTI guidelines. Actual pre-approval depends on your full credit profile, verified income and assets, the specific lender's overlays, current rates you actually qualify for, and the loan program (conventional, FHA, VA, jumbo) — always get a real pre-approval letter from a lender before house-hunting seriously.

Do DTI limits differ by loan type? ▼

Yes — conventional loans typically use the 28/36 guideline (up to 45-50% back-end with strong compensating factors via automated underwriting). FHA loans are more flexible, commonly allowing up to 31% front-end and 43-50% back-end. VA loans don't use a strict front-end ratio at all — they instead weigh a 'residual income' test alongside a back-end ratio commonly around 41% — the loan-type preset below adjusts the DTI fields to these commonly-cited starting points; your actual limits depend on the specific lender and your full file.