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Mortgage Affordability Calculator

Calculate how much home you can comfortably afford based on your income, existing monthly debt obligations, down payment, and prevailing mortgage interest rates.

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₹20,000₹2,000,000
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₹0₹10,000
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₹0₹1,000,000
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1%15%
Calculation Results
Maximum Affordable Home Price
₹5,50,453.54
Max Loan: ₹4,90,453.54 + ₹60,000 down payment
Max Monthly Payment
₹3,100
Max Financed Loan
₹4,90,453.54
Down Payment Applied
₹60,000
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How to use the Mortgage Affordability Calculator

  1. 1Enter annual gross household income.
  2. 2Enter existing monthly recurring debts (auto, student, credit cards).
  3. 3Enter cash available for down payment.
  4. 4Enter expected mortgage interest rate and loan term.

How Mortgage Affordability is Calculated

Uses standard 36% Debt-to-Income (DTI) debt limits to calculate maximum affordable monthly mortgage payment, then back-calculates loan principal and adds down payment.

Mathematical Formula
Max Monthly Debt = (Gross Income / 12) × 0.36 Max Mortgage Payment = Max Monthly Debt - Existing Debts Max Loan = PV(Rate, Term, Max Mortgage Payment) Max Home Price = Max Loan + Down Payment
Formula Variables & Logic

Conforms to conventional underwriting standards for safe borrowing.

Worked Example: Household Earning $120,000 / Year
Sample Calculation
Scenario: Gross income of $120,000/yr, $500 monthly debts, $60,000 down payment, 6.5% interest, 30-year term.
Step-by-step breakdown
  1. 1Gross Monthly Income = $10,000
  2. 2Max Allowed Debt (36%) = $3,600 | Max Mortgage Payment = $3,600 - $500 = $3,100
  3. 3Max Loan Financed = $490,442
  4. 4Max Home Purchase Price = $490,442 + $60,000 = $550,442
Estimated Result
Maximum affordable home price is $550,442.00.

What affects Mortgage Affordability results

  • Property taxes and homeowners insurance in your area.
  • Credit score impacting your interest rate offer.
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Frequently Asked Questions

What is the 28/36 rule for home affordability?

The 28/36 rule dictates that you should spend no more than 28% of gross monthly income on housing expenses, and no more than 36% on all total debt combined.

What percentage of gross income should go toward mortgage payments?

Financial advisers recommend the 28/36 rule: spend no more than 28% of gross monthly income on housing costs and no more than 36% on total combined debt payments.

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