Mortgage Affordability Calculator
Calculate how much house you can afford based on your income, debts and down payment.
About this calculator
This Mortgage Affordability Calculator estimates the maximum home price you can afford from your annual gross income, monthly debt payments and down payment, using the 28/36 rule widely used by US mortgage lenders. The rule caps housing costs at 28% of gross monthly income and total debt, including housing, at 36%.
The tool takes the smaller of the two limits as your maximum monthly mortgage payment, converts it into the loan that payment would repay over the term you choose and adds your down payment to give the maximum home price. It reports the loan, the payment and your current debt-to-income ratio. Figures exclude property tax, insurance and HOA dues, so treat the answer as an upper bound.
How to use it
- Enter your Annual Gross Income (before tax).
- Enter your Monthly Debt Payments: car, student and personal loans and card minimums.
- Enter your Down Payment.
- Enter the Annual Interest Rate and choose the Loan Term.
- Press Calculate and read the maximum home price.
Tips and common mistakes
- Lenders may approve more than this rule suggests. Staying within it leaves room for maintenance and emergencies.
- Add property tax and insurance (often 1% to 2% of the home value per year) on top of the payment.
- A larger down payment lowers the loan and can remove mortgage insurance requirements.
- Pay down high-interest debts first. Each ₹1 of monthly debt reduces what you can afford.
Frequently asked questions
What is the 28/36 rule?
Housing costs should be no more than 28% of gross monthly income and total debt payments no more than 36%.
Is this the maximum a lender will approve?
Not necessarily. Lenders may allow higher ratios for strong borrowers. This tool shows a conservative figure.
What is included in the payment?
Principal and interest only. Taxes, insurance and association dues are extra.
Which currency does it use?
Any. Enter all amounts in the same currency.
How does the term affect affordability?
A longer term lowers the payment per unit borrowed, so you can afford a larger loan, at the cost of more interest.
Why does my debt reduce the answer?
Because the 36% cap leaves less room for housing the more debt you already have. In the example, debts are small, so the 28% limit applies.