House Affordability Calculator
Find out how much house you can afford based on income, debts, down payment and a lender-friendly debt-to-income ratio.
Car loans, credit cards, student loans and other recurring payments.
Lenders typically cap the back-end ratio at 36–43%.
Affordable home price
$494,409
With 20% down
Max monthly payment
$2,500
After your other debts
Total interest
$504,473
Total payment
$900,000
Uses the back-end debt-to-income rule: monthly housing payment plus other debts ≤ income × ratio. This is a planning estimate, not a lender pre-approval.
How it works
Max housing payment = income × 28% (front-end) and ≤ income × 36% − other debts (back-end). Price solved by reversing the amortising formula.
Example: $100k income, no debts → up to $2,333/month housing → ~$325,000 at 6.5% with 20% down.
Last updated: July 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use the house affordability calculator before you start visiting properties, because it answers the question no agent will answer for you: how much house your income can actually support. It works from the lender's perspective, applying the debt-to-income ceiling banks typically use, so the affordable price reflects the EMI you will genuinely be offered. Enter your monthly income, existing EMIs and other debts, the down payment you can arrange and the current rate, and read the loan amount and property price you can afford, plus the resulting EMI. First-time buyers in Indian metros use it to shortlist neighbourhoods within budget before paying token amounts, and families considering an upgrade use it to check whether the new loan still fits alongside school fees and other commitments.
How to Use This Calculator
- Step 1: Enter your annual pre-tax income in the annual income field.
- Step 2: Add every monthly debt payment — car loan EMI, credit card dues, personal loan instalments — in the monthly debt field.
- Step 3: Set the expected home loan interest rate, term, the debt-to-income limit and your planned down payment percentage.
- Step 4: Read the affordable home price and the maximum monthly payment, which is your income share left after other debts.
Worked Example
With an annual income of ₹18,00,000 (₹1,50,000 a month) and ₹20,000 of existing monthly EMIs, a 40% back-end limit leaves about ₹40,000 a month for housing. At 8.5% over 20 years, that supports a loan of about ₹46.1 lakh, and with a 20% down payment the affordable price works out to about ₹57.6 lakh. The calculator also reports the maximum monthly payment, which is the figure your bank actually checks.
Tips and Common Mistakes
- •Tip 1: Indian lenders speak of FOIR — fixed obligation to income ratio — and commonly keep all EMIs within 40-50% of monthly income; test both ends of that range.
- •Tip 2: Include future obligations such as a car loan you plan to take; lenders recheck the ratio when you apply later.
- •Tip 3: Deduct stamp duty and registration costs (roughly 5-8% of the value) from the affordable price, since they are paid outside the loan.
- ✗Mistake 1: Leaving the monthly debt field at zero — the affordable price looks far too high when existing obligations are missing.
- ✗Mistake 2: Entering gross salary without accounting for PF and tax deductions; lenders work from your take-home income.
Frequently Asked Questions
How much house can I afford?
Most lenders want your total monthly housing costs (principal, interest, taxes, insurance and HOA fees) to stay at or below 28% of your gross monthly income, and total debts below 36%.
What is the 28/36 rule?
It is a budgeting guideline: no more than 28% of gross income on housing and no more than 36% on all debts combined. This calculator applies those limits to estimate your price range.
Why does my down payment change what I can afford?
A larger down payment reduces your loan amount and may remove PMI, so the same income can support a more expensive home without breaking the monthly budget.
Is this house affordability calculator free to use?
Yes, True Calculator's house affordability calculator is completely free with no sign-up, no app install and no usage limits.
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