Home Loan Affordability Calculator

Check how much you can afford with our easy-to-use calculator

Debt-to-Income affects how much you can borrow

The DTI (debt-to-income ratio) is your least monthly debt classified by your monthly salary. The lower your DTI, the more you can borrow and the more options you'll need

Home Affordability

The above calculations do not involve amounts for

  • Private debt insurance (PMI), which perhaps be required at the time of giving a down payment.

  • Mortgage Insurance Premiums (MIP), which may be required for FHA-insured loans

  • Owner’s Insurance. These costs may be notable and may affect your affordability, debt-to-income ratio, or monthly payment.

How much house can I afford?

You understand which house you can afford, and an affordability calculator can assist. Get approved in advance for a loan which will help you to understand how much you're eligible to borrow. But remember, when it comes to affordability, the amount the bank will give you and the amount which you can afford to pay without bothering your budget will be hardly any different. One important factor in deciding the amount of money you can borrow on a home loan is your debt-to-income (DTI) rate. A favorable DTI affects your capability to get pre-qualified for a mortgage. Lastly, you have an option in what you are deciding to spend on a home. A lender's charge is important, but eventually, you will need to consider your income, expenses, and saving priorities to understand what is suitable within your budget.

Affordability Guidelines

While everybody's situation differs or some loans may comprise different guidelines, check the generally suggested guidelines depending on your entire monthly income (before taxes).

Your debt-to-income (DTI) should be less

Your housing expenses must be a little lower. This is for factors like insurance, taxes, maintenance, and repairs

You must have housing payments and expenses saved up for at least 3 months

Factors That Affect Your Affordability

The amount you can afford to spend depends on many factors like your co-borrower's yearly income, down payment, & location (it's a primary part in terms of considering your interest rate and property tax).

This current one's an easy decision. Income must combine with your co-borrower's income in case you're purchasing the home together.


The debts directly influence your affordability. As it's based on the rate between your income and what you owe.


Surprisingly, the interest rate you pay makes a major difference in how much you can afford. Rates mostly depend on the location, which affects your affordability.

Credit Score

The interest rate will be calculated based on your credit score.

Down Payment

A vital part of your affordability is your down payment. The more money you put in the beginning, the less your monthly payment/EMI will be.


Ownership comes with costs that rentals do not. So remember to save some money for other minor maintenance.

More Resources

Analyse the contract method with more easy-to-use resources from HomeBazaar.com:

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