Home affordability calculator
Enter your monthly income, current debt payments, down payment and the highest debt ratio you accept. The result is an estimate, not a bank approval.
Result
249,725.97Indicative price you can afford (loan + down)
- Amount you can borrow
- 219,725.97
- Payment left for the mortgage
- 1,100.00
- Interest over the whole loan
- 110,274.03
- This is not an approval: lenders also look at savings, job, credit score and what is left to live on.
Inputs
- Monthly income
- 4000
- Other debt payments per month
- 300
- Down payment
- 30000
- Loan rate
- 3.5
- Loan length
- 25
- Highest debt ratio
- 35
How it is calculated
Payment left = income × debt ratio − other debt payments.
Result
Indicative price you can afford (loan + down)
- Amount you can borrow
- 219,725.97
- Payment left for the mortgage
- 1,100.00
- Interest over the whole loan
- 110,274.03
How it is calculated
- Payment left = income × debt ratio − other debt payments.
- Amount you can borrow = payment × (1 − (1 + i)^−n) ÷ i, with i = rate ÷ 12 and n = months.
- Price = amount borrowed + down payment.
Example
Income 4,000, other debts 300, down 30,000, 3.5% over 25 years and a 35% ratio: 1,100 a month for the mortgage, so 219,725.97 borrowed and a budget of 249,725.97.
Good to know
- No property tax, insurance, closing costs or mortgage insurance: take them out of the budget.
- The debt ratio is a setting, not a rule: each lender and country has its own.
Frequently asked questions
What is this tool used for?
Enter your monthly income, current debt payments, down payment and the highest debt ratio you accept. The result is an estimate, not a bank approval.
How is the result calculated?
Payment left = income × debt ratio − other debt payments.
What should I check before using the result?
No property tax, insurance, closing costs or mortgage insurance: take them out of the budget.