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NerdWallet’s Mortgage Income Calculator shows you how much income you need to qualify for a mortgage. It uses five numbers - home price, down payment, loan term, interest rate and your total debt payments - to deliver an estimate of the salary you need to buy your home. After those first five inputs, you can answer optional questions (see below) to refine your result.
To use the Mortgage Income Calculator, fill in these fields:
The calculator shows two sets of results:
Use our to find your DTI ratio and learn more about debt’s role in your home purchase.
Besides showing you how much income you need to afford the home you want, this calculator also shows how your debts can compromise your chance for a mortgage. You can see how paying down debts directly affects your buying power. The fewer debts you have, the more of your salary can go toward the home, allowing you to afford a more expensive property. At the same time, more debts mean less money available, based on your current salary, to pay for - and qualify for - the home you want.
You can use this calculator to visualize how a higher or lower salary could change your ability to afford the home of your dreams. What if you got a raise? Or took a weekend job? You can vividly see how you could afford different homes with more income, or less.
Unfortunately, not everyone is financially ready to buy a home. This Mortgage Income Calculator will show some people that buying, at least at this point, is not within their grasp and offer an understanding of what financial obstacles stand in the way.
This calculator may show you that not enough down payment is your problem. Or maybe it’s too much debt. Perhaps you simply need to earn more to buy the home you want and need. Or, if you reassess your ambitions, can you afford a less-expensive home?
The calculator does not include costs for . You’ll be required to pay PMI if your down payment is less than 20%. PMI is based on the down payment, credit score and type and size of a mortgage. Rule of thumb: Plan on paying from about 0.41% to 2.25% of the loan amount annually for PMI.
Here’s why it’s necessary to include PMI in your calculations: The more of your income you have to spend on PMI, the less is available to spend on your mortgage.
Here are two ways to include an estimated PMI cost into your home purchase calculations: