Income Needed Calculator
Enter a home price and see the income you would need to qualify, based on your down payment, other debts, and current rates.
How Much Income Do You Need to Buy a Home?
Most affordability tools start with your income and work toward a price. This one works the other way: start with the home you want and see the income a lender would look for.
Lenders compare your total monthly debts, including the new housing payment, with your gross monthly income. Enter the price, your down payment, the rate, and your other monthly debts. The calculator adds property taxes, insurance, and any HOA dues, then shows the income needed at the debt-to-income ratio you choose.
Example: A $750,000 home with 20% down at 6.5% has a housing payment of about $4,724 a month including taxes and insurance. With $800 in other debts and a 43% debt-to-income ratio, the income needed is about $154,000 a year.
Common Questions
What debt-to-income ratio do lenders use?
Many conventional loans allow up to 45%, and some go to 50% with strong credit and reserves. FHA and VA loans can be more flexible. A lower ratio leaves more room in your budget.
Can I count a co-borrower’s income?
Yes. Lenders use the combined income and the combined debts of everyone on the loan.
What if my income is lower than the result?
A larger down payment, a lower price, paying off a car loan or credit card, or a loan program with a higher allowed ratio can all close the gap. Self-employed and retired borrowers may also qualify using bank statements or assets.