House Affordability Calculator
Estimate the maximum home price you can afford.
Inputs
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%
%
years
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%
Result
Max Home Price$355,481.74
Max Monthly Payment$2,200.00
Down Payment Needed$71,096.35
About the Home Affordability Calculator
The Home Affordability Calculator estimates the maximum home price you can comfortably buy based on your income, existing debts, down payment and mortgage terms. It is especially useful in India and the US, where lenders apply strict debt-to-income (DTI) limits.
Calculation method
The calculator applies a maximum debt-to-income ratio to your gross monthly income, subtracts existing debt payments, and iteratively solves for the highest home price whose principal, interest and taxes fit inside that budget.
Max housing payment = Gross monthly income × DTI − Existing debts
Solve for price so PMT(loan) + monthly taxes = max housing paymentHow to use this calculator
- Enter your gross annual income and existing monthly debts.
- Choose a maximum DTI (typically 36–43%).
- Enter the mortgage rate, term, down payment %, and property tax rate.
- Read the affordable home price and maximum monthly payment.
Example
On a ₹75,00,000 income equivalent (or $90,000/yr) with $500 of existing debts, a 36% DTI, 6.75% rate, 30-year term, 20% down and 1.2% property tax, the maximum affordable home price is approximately $340,000.
Frequently asked questions
What is the 28/36 rule?
A common affordability guideline: housing costs should stay under 28% of gross income and total debts under 36%.
Does this calculator work for India?
Yes. Enter your income in your local currency and adjust the property tax rate (in India, use the applicable municipal rate — often 0.5–1% of assessed value).
Should I max out my affordability?
No. Most planners recommend buying below your maximum so you have room for maintenance, emergencies and rate increases.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.