Home Affordability Calculator
Estimate how much home you can afford based on income, debts and down payment.
Assumptions used in this calculation
- 28/36 rule: Uses the common lending guideline of 28% of gross income for housing costs and 36% for total debt, actual lender limits vary.
About this calculator
House hunting without a clear affordability ceiling leads either to falling for homes outside your realistic budget or underselling what you could actually qualify for, and the standard formula lenders use to set that ceiling involves two separate debt ratios plus converting a monthly payment back into a loan amount. This calculator applies the 28/36 rule, no more than 28% of gross income on housing alone, and no more than 36% on housing plus all other debt combined, to your annual income and existing monthly debts to find a safe maximum monthly housing payment, then converts that payment into a maximum loan amount at your expected interest rate and term, and adds your down payment to get an affordable home price. Five inputs (income, other debts, down payment, rate, term) replace manually computing two debt ratios, taking the more restrictive one, and reverse-engineering a loan amount from a payment, each a step that compounds errors if done by hand.
Worked example
₹12L income, ₹5,000 other debts, ₹10L down payment, 8.5% for 20 years
Result: Affordable home price ≈ ₹36,00,000
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