Mortgage Affordability Calculator
Calculate mortgage affordability from income, debts, rate, term, and deposit assumptions.
Mortgage Affordability Calculator
Guide
How it works
Use this calculator to estimate how much mortgage you may be able to afford.
What this calculator does
The mortgage affordability calculator estimates maximum monthly payment, maximum loan amount, and maximum property value.
It uses:
- gross monthly income
- monthly debts
- annual interest rate
- loan term
- deposit percentage
Mortgage Affordability Formula
Max Monthly Payment = Gross Monthly Income x 28% - Monthly Debts
The calculator then converts that payment into an estimated loan amount.
Example calculation
If gross monthly income is 8,000, monthly debts are 500, and the mortgage rate is 6%, the calculator estimates the maximum loan and home value.
When to use this calculator
- setting a home search budget
- testing rate assumptions
- checking debt impact
- estimating deposit needs
FAQs
Is this mortgage approval?
No. It is a planning estimate. Lenders use full underwriting rules.
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