House Affordability Calculator

Find the maximum home price you can comfortably afford based on your income and debts.

Down Payment Calculator

Savings Tracker

Shortfall: ₹2,00,000

Save ₹20,000/mo → ready in 0y 10m

Down Payment

₹10,00,000

Loan Amount

₹40,00,000

Monthly EMI

₹34,713

Total Interest

₹43,31,103

Stamp Duty (~6%)

₹3,00,000

Registration (~1%)

₹50,000

Total Upfront Cost

₹13,50,000

House Affordability Calculator Formula & How It Works

Max Housing Cost = Gross Monthly Income × 0.28 | Max Total Debt = Gross Monthly Income × 0.36
  • 28% rule: housing costs (PITI) ≤ 28% of gross monthly income
  • 36% rule: all debt payments ≤ 36% of gross monthly income
  • PITI = Principal + Interest + Taxes + Insurance
  • Max loan = solve mortgage formula backwards from max monthly payment

Lenders use the 28/36 qualifying ratios to assess loan eligibility. Your maximum mortgage payment is the lower of: 28% of gross income OR (36% of gross income minus all other debt payments). From that maximum payment, work backwards using the mortgage formula to find the maximum loan amount.

House Affordability Calculator FAQs

How much house can I afford on a $80,000 salary?

Using the 28% rule: $80,000 ÷ 12 = $6,667/month × 0.28 = $1,867 maximum housing payment. At 7% for 30 years, that supports a loan of about $280,000, so with a 20% down payment you can afford approximately $350,000.

What is the 28/36 rule?

A lending guideline: monthly housing costs should not exceed 28% of gross income, and total monthly debt (housing + car + student loans + credit cards) should not exceed 36% of gross income.

Does my credit score affect affordability?

Yes. A higher credit score qualifies you for lower interest rates, which raises the home price you can afford. Going from 680 to 760 credit score can save 0.5–1% in rate, adding tens of thousands in purchasing power.

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