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Mortgage Affordability Calculator (Income Based)

Determine how much home you can afford based on your annual salary.

Income-Based Affordability Calculator

Calculate how much home you can afford based on your income and debt-to-income ratios.

salary + other incomes (before tax)

years
%

long-term debts, car, student loan, etc

%
% per year
% per year
% per year

Maximum Affordable Home Price

₹43,26,450

Loan Amount

₹34,61,160

Down Payment

₹8,65,290

Monthly Payment Breakdown

Principal & Interest₹20,789
Property Tax₹5,408
Insurance₹1,803
Total Monthly Payment₹28,000

DTI Ratio Analysis

Front-End DTI (Housing)28.0%

Target: ≤28%

Back-End DTI (Total Debt)28.0%

Target: ≤36%

How Much House Can You Really Afford?

Determining your home buying budget is the most critical first step in the mortgage process. Our mortgage affordability calculator helps you approach this from two different angles: your annual income or your monthly comfort level.

Understanding the 28/36 Rule

Most lenders use the 28/36 rule to determine how much they're willing to lend you. This means your total housing costs shouldn't exceed 28% of your gross monthly income, and your total debt payments (including the new mortgage) shouldn't exceed 36%.

Factors That Impact Affordability

  • Interest Rates: Even a 0.5% change in rates can swing your buying power by tens of thousands of dollars.
  • Down Payment: A larger down payment reduces your loan amount and monthly payment, potentially helping you avoid PMI.
  • Credit Score: Higher scores unlock lower interest rates, directly increasing the loan amount you can afford.
  • Debt-to-Income (DTI): Lowering existing debts like car loans or student loans increases what's left for a mortgage.

Frequently Asked Questions

What is a good debt-to-income ratio for a mortgage?

Ideally, your back-end DTI (all debts including mortgage) should be 36% or lower. However, some loan programs like FHA allow up to 43% or even 50% in certain cases.

How does the down payment affect my affordability?

The more you put down, the less you need to borrow. This lowers your monthly principal and interest payment, allowing you to afford a higher-priced home with the same monthly budget.