How to use the House Affordability Calculator
This tool estimates the home price you can afford from your income, debts, deposit and interest rate using the common 28/36 rule.
Open the House Affordability Calculator →
What you need to enter
- Annual income ($)
- Monthly debt payments ($)
- Down payment ($)
- Interest rate (%)
- Loan term (years)
- Tax + insurance (% of price / year)
The formula
Maximum housing payment = the smaller of 28% of monthly income, or 36% of monthly income minus other debts. That payment, plus your down payment, sets the price.
Worked example
Using the default values in the calculator:
- Annual income ($): 90000
- Monthly debt payments ($): 400
- Down payment ($): 40000
- Interest rate (%): 6.5
- Loan term (years): 30
- Tax + insurance (% of price / year): 1.5
| Affordable home price | $310,781.48 |
| Loan amount | $270,781.48 |
| Max monthly housing cost | $2,100.00 |
| Monthly principal & interest | $1,711.52 |
Tips for better results
- Lenders may allow higher ratios, but a lower payment leaves room for savings.
- Include property tax and insurance in the budget.
Common mistakes to avoid
- Treating the maximum a lender allows as the amount you should borrow.
- Leaving out maintenance and moving costs.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.