Home buying planning
Free House Affordability Calculator
Find out how much house you can afford from your income, debts and down payment. See the monthly cost, the debt ratios lenders check and how the interest rate changes your budget.
7 min read
Your finances
Enter your numbers
Where are you buying?
Uses the widely quoted 28% / 36% rule: housing costs up to 28% of gross income, and all debts up to 36%.
Private: everything is calculated in your browser. Nothing is sent or stored on our servers.
Monthly cost breakdown
$2,333At your 6% rate for a $372,400 home.
- Principal & interest$1,873
- Property tax$310
- Insurance & utilities$150
How the interest rate changes your budget
| Rate | Home price | Monthly cost |
|---|---|---|
| 5.00% | $404,000 | $2,333 |
| 6.00% (yours) | $372,400 | $2,333 |
| 7.00% | $344,900 | $2,333 |
| 8.00% | $321,000 | $2,333 |
Your Affordability Insights
- Your housing costs are the limit: at $372,400 they reach 28% of your gross income. Lower costs or a longer term raise the budget.
- At your 6% rate, expect about $2,333 a month for the home.
- The purchase is funded 16% by your down payment ($60,000) and 84% by a $312,400 mortgage.
- Each 1% rise in the interest rate cuts this budget by roughly $27,500. Lock in a rate before you make offers.
- Keep extra cash for closing costs, often 2–5% of the price (about $7,448–$18,620 here), plus moving and repairs. They are not included above.
- With less than 20% down, lenders may charge mortgage insurance or a higher rate. It is not priced in this estimate.
How it works
Estimate your budget in three steps
- 1
Pick where you are buying
Choose Anywhere for the 28/36 rule, or a country to load its common lending rules.
- 2
Enter your finances
Add gross income, monthly debts, savings for a down payment, your rate and monthly home costs.
- 3
Read the limit
See the price you could afford, what limits it, your monthly cost and how rates change the budget.
How the price is worked out
The calculator finds the highest price where all of these are true at the same time:
- Housing costs ≤ housing limit × monthly income. Mortgage payment, property tax, insurance and fees.
- Housing + other debts ≤ total debt limit × monthly income.
- Your savings cover the minimum down payment for that price.
- The loan is within any income-multiple cap (used for the UK).
The first rule that fails is shown as your limiting factor, so you know whether to save more, pay down debt or lower costs.
Not included
- Closing costs, legal fees, transfer or stamp taxes, moving and repairs.
- Your credit score and the lender's own policies.
- Mortgage insurance in the UK and Australia (LMI).
- Future changes to rates, taxes or income.
Treat the result as a ceiling, not a target. Many buyers aim below it to keep room for savings.
Lending rules by country
Each country option loads these common reference values. They are typical starting points, not any single lender's policy, and you can change all of them under Lending rules.
| Option | Housing / total debt limit | Qualifying rate | Minimum down payment |
|---|---|---|---|
| Anywhere | 28% / 36% | Your rate | 5% (editable) |
| United States | 28% / 36% | Your rate | 3%; PMI below 20% |
| Canada | 39% GDS / 44% TDS | Higher of 5.25% or rate + 2% | 5% / 10% / 20%; CMHC premium below 20% |
| United Kingdom | 35% / 45% + ~4.5× income | Your rate | 5% |
| Australia | 30% / 40% | Rate + 3% buffer | 5%; LMI below 20% |
Buying in Canada?
Choose Canada in the calculator for GDS/TDS, the stress test and CMHC premiums, then read our Canadian guides.
Questions and answers
House affordability FAQ
How much house can I afford on my salary?
A common starting point is the 28/36 rule: total housing costs up to 28% of your gross monthly income, and all debt payments up to 36%. On $100,000 a year with $400 of other debts, that allows about $2,333 a month for housing. The calculator turns that payment into a home price using your rate, term, taxes and down payment.
What counts as housing costs?
Your mortgage principal and interest, property tax, home insurance, and HOA, condo or strata fees. In Canada heating is also counted and only half of condo fees. In the US, private mortgage insurance (PMI) is added when you put down less than 20%.
What is a debt-to-income (DTI) ratio?
It compares your monthly debt payments with your gross monthly income. The front-end ratio covers housing only; the back-end ratio adds car loans, student loans and card minimums. Lenders set limits on both, and the lower result decides your budget.
Why is my budget lower than the payment I could manage?
Many lenders check that you could still pay at a higher rate. Canada uses a stress test at the higher of 5.25% or your rate plus 2%, and Australian lenders add a 3% buffer. The calculator shows this qualifying rate when it applies.
How much down payment do I need?
It depends on the country and loan. Some US loans allow 3%, the UK and Australia often start at 5%, and Canada requires 5% of the first $500,000 and 10% of the part above. Below 20%, expect mortgage insurance or a higher rate.
Is this a mortgage pre-approval?
No. It is an educational estimate. A lender looks at your credit, income documents, the property and its own policies. Use the result to set a realistic search range, then speak to a lender or broker.