The price-to-income ratio is the simplest affordability check: it compares the home price to your annual income and flags whether you're in comfortable or stretched territory.
How it works
- Enter the total sale price of the house.
- Enter your total annual household income.
- The calculator divides the two to evaluate your affordability safety ratio.
Frequently asked questions
What ratio do lenders use?
Lenders focus more on DTI (monthly payment vs income), but the price-to-income ratio is a useful quick filter before calculating payments.
How does this vary by city?
Ratios above 10× are common in San Francisco, New York, and London. Ratios below 3× are found in many midwestern US cities.
What income to use?
Use combined gross household income before taxes, which is the figure lenders use for qualifying.