House affordability calculator
Find the home price you can afford from your income, existing debts, down payment and loan rate.
Results
Affordable home price
$368,511.10
This is the highest price that keeps your housing and debt payments within 36% of your income before tax, with a 30-year loan at 6.5%.
- Loan amount
- $308,511.10
- Monthly housing payment
- $2,300.00Loan payment plus other monthly costs
- Loan repayment
- $1,950.00Paying off the loan and its interest
- Monthly housing budget
- $2,300.0036% of monthly income, minus other debt payments
- Share of income going to debts
- 36%Housing payment plus other debt payments, as a share of income before tax
Where your monthly income goes
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How it works
Lenders often cap the share of your income before tax that can go on housing and debt repayments. We take that share of your monthly income, subtract your other debt payments and running costs, and treat what is left as the most you can pay towards a loan each month. We then work out how big a loan that payment repays over your term and add your down payment.
Formula
- Housing budget = yearly income ÷ 12 × limit % − other debt payments
- Loan payment = housing budget − other monthly costs
- Loan = loan payment × (1 − (1 + r)^−n) ÷ r, with r = rate ÷ 12 ÷ 100, n = years × 12
- Affordable price = loan + down payment
Frequently asked questions
What limit for housing and debts should I use?
Many lenders look for total debt payments of roughly 35% to 45% of income before tax, but rules vary by country and lender. A lower limit leaves more breathing room for savings and surprises. Try a few values to see how sensitive the price is.
Is the affordable price what I should spend?
It is the most the limit allows, not a target. It doesn't count moving costs, repairs, furniture or the purchase taxes and fees that some countries charge. Spending less than the maximum keeps your budget safer if rates or income change.
Why does a higher interest rate lower the price so much?
Your monthly budget stays the same, but at a higher rate more of each payment goes on interest. That leaves less to repay the loan itself, so the loan you can support shrinks, and the home price shrinks with it.
Should I use income before or after tax?
Use income before tax, because lenders usually set these limits against pay before tax. If you prefer to plan from take-home pay, lower the limit to stay on the cautious side.
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Results are estimates only, not financial advice. Read the disclaimer.