Mortgage Preapproval Calculator
By Timothy Moore | Updated July 1, 2025
A mortgage preapproval calculator is a helpful tool for understanding how much money a lender is likely to allow you to borrow when you’re buying a house. This can give you a good frame of reference in the early stages of house shopping, when you’re not quite ready to submit to a hard credit check with a lender and get a preapproval letter.
Use our mortgage preapproval calculator to get a better idea of how much of a mortgage you can get based on your income and debts.
Key Points
• A mortgage preapproval calculator estimates borrowing power for a home purchase.
• Using a preapproval calculator doesn’t require a credit check. It’s fast and easy to get results.
• Preapproval amounts depend on the borrower’s income and debt levels.
• Tips for getting a formal preapproval letter from a lender include checking your credit and comparing different lenders’ rates.
• A preapproval calculator helps borrowers understand home affordability and monthly payment amounts.
*Actual preapproval amount may vary from the estimated preapproval amount noted in the calculator.
Calculator Definitions
Before you dive into using our mortgage preapproval calculator, it’s important to understand the terms involved:
• Mortgage preapproval: The mortgage preapproval process is a formal step in home-buying wherein a lender reviews your credit and financial history to determine the maximum amount it is willing to loan you. If you’re preapproved, you’ll receive a mortgage preapproval letter with the loan amount and interest rate. It’s not a guarantee, but it’s a solid sign that you can qualify for the loan.
• Annual income: Your annual income refers to the amount of money you make in a year before taxes. If you have multiple sources of income, you should add these together, including salary, hourly pay from a part-time job, income as a self-employed contractor, or government benefits. If you’re buying the house with a second person, such as your spouse, you can combine your income.
• Loan term: This refers to the length of the mortgage. Typically, a conventional mortgage lasts 30 years, but some buyers may get a 15-year mortgage. Though less common, borrowers can also get 5-, 10-, 20-, and 25-year mortgages.
• Interest rate: While you won’t know the exact interest rate you’ll be offered until you move forward with an official preapproval, you can estimate based on current rates.
• Monthly debt payments: The home loan preapproval calculator asks you to input monthly debt payments, because this is something a lender will review. Add up all your monthly obligations, including credit card payments, personal loan payments, car payments, student loan payments, and payments from any existing mortgages.
How to Use the Mortgage Preapproval Calculator
Using the mortgage preapproval calculator is easy. Here’s how:
1. Calculate and enter your annual income: Add up all your relevant sources of income (pre-tax), including your own income and that of any other applicants. Insert that number in the first field.
2. Calculate and enter your monthly debt payments: Sit down with your bank statement or budget to figure out your monthly debt obligations (how much you spend each month on your debts). Add these together and type the number in the second field.
3. Determine the term of the loan: Use the slider to indicate the ideal mortgage term length (between five and 30 years). Remember that 30 years is the standard; a shorter loan term length can result in significantly higher monthly payments — but less interest paid over the life of the loan.
4. Research current interest rates: Look at the current mortgage rates and input the rate you’re most likely to be offered based on the loan term you’re considering.
5. Look at your results: Based on the information you provide, you’ll be able to see the estimated maximum monthly mortgage payment you should consider, as well as the estimated preapproval amount.
Remember: The mortgage preapproval calculator is an estimate only, intended to help you get a sense of how much house you might be able to afford as you begin to shop. If you live somewhere with a high cost of living, your personal budget may vary accordingly. When you’re getting closer to the offer stage, you’ll want to get a real preapproval letter for a home loan.
Recommended: Finding Down Payment Assistance
What Is a Mortgage Preapproval Calculator?
A mortgage preapproval calculator is an online tool that gives you an idea of what size loan a lender is likely to approve you for when buying a house. It can also show you the highest monthly payment you can likely afford. It’s a useful tool, especially if you are buying your first home and haven’t been through the process before.
The calculator is only an estimate. Before you officially make an offer on a house, you may want to get a mortgage preapproval letter from a lender. The letter shows buyers that you’re serious about your offer and you have taken steps to secure financing.
Benefits of Using a Mortgage Preapproval Calculator
• Fast and easy: You can use a preapproval calculator from the comfort of your couch. One minute, you’re using the calculator and the next, you can be scrolling for house listings.
• No credit check: When the time comes, you’ll need to get an official preapproval, which will require a hard credit check. But if you’re not yet serious about making an offer on a house, a mortgage preapproval calculator sets a good frame of reference as you start saving for a down payment and eyeing the market — without requiring a credit check.
• No expiration: An official mortgage preapproval lasts only 30 to 90 days, depending on the lender. That means you shouldn’t get one until you’re sure you’ll be making an offer in the coming weeks or months. The estimate provided by a mortgage preapproval calculator, however, has no expiration date.
Types of Mortgage Preapproval
People throw around the term “mortgage preapproval” quite freely, but it’s actually a distinct term from “mortgage prequalification” and “fully underwritten,” which are different stages in the process. Here’s a look at mortgage prequalification vs. mortgage prequalification vs. fully underwritten:
• Mortgage prequalification: Getting prequalified with a mortgage lender is a less formal process than getting preapproved or underwritten. You provide a few details (your estimated income, debts, and credit score), and the lender will let you know how large a loan you’d likely be approved for, if you did apply. This is just an estimate, but it’s enough to help you start thinking about the home-buying process.
• Mortgage preapproval: When you’re more serious about making an offer, you’ll want a mortgage preapproval. You’ll consider different types of loans and think about the term of your mortgage. The lender will check your credit and require documentation to verify all the information you provided. Once your stats are reviewed, the lender can offer a preapproval letter with the amount of money you can likely borrow and at what interest rate.
• Fully underwritten: Once you make an offer on a house — and that offer is accepted — you can apply for the mortgage. At that point, the lender reviews your application more thoroughly (this is the underwriting process) and, assuming everything is as it should be, approves you for the mortgage, pending an appraisal.
Examples of Mortgage Preapproval
The table below shows various mortgage preapproval examples for a 30-year fixed-rate loan at 6.50%. You can see how big an impact annual income and monthly debt payments have on estimated preapproval amounts by putting your own numbers into the mortgage preapproval calculator.
| Annual Income | Monthly Debt Payments | Estimated Preapproval Amount |
|---|---|---|
| $50,000 | $0 | $187,580 |
| $50,000 | $600 | $89,653 |
| $50,000 | $1,200 | Cannot be preapproved |
| $75,000 | $0 | $276,869 |
| $75,000 | $600 | $181,943 |
| $75,000 | $1,200 | $87,016 |
| $100,000 | $0 | $369,159 |
| $100,000 | $600 | $274,233 |
| $100,000 | $1,200 | $179,306 |
| $150,000 | $0 | $553,738 |
| $150,000 | $600 | $458,812 |
| $150,000 | $1,200 | $363,885 |
| $200,000 | $0 | $738,318 |
| $200,000 | $600 | $643,391 |
| $200,000 | $1,200 | $548,465 |
Mortgage Preapproval Tips
Here are some quick tips for a successful mortgage preapproval process:
• Check your credit score and save for a down payment: Before focusing on preapproval, make sure your credit score is strong enough to qualify for a loan. (Here are the basic credit score requirements for a mortgage.) You should also figure out how much money you are willing to put down at signing and start saving, as needed.
• Use a calculator or get prequalified: Before requesting a preapproval, get a general idea of what you can expect to borrow. You can obtain an estimate from a mortgage preapproval calculator or get one by prequalifying with a lender.
• Shop around: Just because a seller accepts your offer with a preapproval letter from a specific lender doesn’t mean you have to apply for the mortgage with that lender. You’re free to seek multiple offers to find the lowest rate and fees.
Recommended: Do You Qualify as a First-Time Homebuyer
The Takeaway
Using a mortgage preapproval calculator can give you a good idea of what size loan you could be approved for. While it’s not a guarantee of approval, the estimate can be quite accurate, as long as you input all the correct information. When you’re ready to buy a house, however, you should get a true preapproval letter from a mortgage lender.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
What salary do you need for a $500,000 mortgage?
The income needed for a $500,000 mortgage is around $150,000 a year. However, if you have a fair amount of debt, you may need to make even more money to afford a $500,000 home. Remember, a lender may approve you for a $500,000 mortgage based on your income, but you need to look at the estimated monthly payments to make sure you’re comfortable spending that much each month for the next three decades.
How much mortgage can I get with $70,000 salary?
The amount of house you can afford on $70,000 a year is around $200,000, but much of that depends on the size of your down payment, the length of the loan, and your monthly debt obligations. If you make $70,000 and have no monthly debt payments, you could afford a $250,000+ house with a 6.5% interest rate. But if you pay $1,000 a month between student loans and a car loan, you should aim for a house closer to $100,000.
How much income do you need to be approved for a $400,000 mortgage?
The income needed for a $400,000 mortgage is at least $130,000 a year, but much of that depends on your debt obligations and the size of your down payment. Interest rates, property taxes, homeowners insurance costs, and loan term length can all impact salary requirements for affordability.
How much income do you need to be approved for a $400,000 mortgage?
The income needed to be approved for a $300,000 mortgage is around $90,000. This estimate assumes you don’t have other sources of significant debt. Other factors, like how much you have saved for a down payment and your credit history, will also impact how much money you should make to get a $300,000 mortgage.
Can I afford a $250k house on a $50k salary?
You probably can’t afford a $250,000 house on a $50,000 salary. Though it depends on other factors, including your monthly debts and your credit score, the typical income needed for a $250,000 mortgage is $76,000. That said, if you have no monthly debt obligations (no student loans, no car loans, etc.) and have saved up a significant down payment (like $50,000 or $100,000), you may be more likely to be approved for a $250,000 house.
What is the 28/36 rule?
The 28/36 rule is a simple tool to use to determine how much house you can afford. While everyone’s situation is unique, conventional wisdom states that total housing costs should not account for more than 28% of your monthly gross income, and your overall debts (car, house, personal loan, student loans, credit cards, etc.) should not account for more than 36% of your takehome pay.
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