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)
long-term debts, car, student loan, etc
Maximum Affordable Home Price
Loan Amount
₹34,61,160
Down Payment
₹8,65,290
Monthly Payment Breakdown
DTI Ratio Analysis
Target: ≤28%
Target: ≤36%
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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.