Mortgage Affordability Calculator
Estimate a realistic home-price range from your income, debts and down payment — with a rate stress test, and clearly labelled planning assumptions.
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- Private browser calculation
Estimated comfortable home-price range
₹4,00,709–₹4,76,979
Estimated affordability based on your inputs — not a lender pre-approval or borrowing offer.
- Estimated maximum mortgage
- ₹4,16,979
- Monthly housing budget
- ₹2,800.00
- P&I budget at current rate
- ₹2,500.00
- At stressed rate
- ₹4,00,709 max price
- Down payment share (high end)
- 12.6%
- Loan-to-value (high end)
- 87.4%
- Resulting debt-to-income
- 28%
At the current rate the estimate is limited by your income (housing-cost ratio); under the stressed rate (8%) it is limited by your income (housing-cost ratio).
The high end assumes today's rate; the low end assumes rates 2 points higher. Buying below the low end leaves a margin for rate rises and unexpected costs.
These estimates are for general planning only and are not mortgage approval, lending, tax, legal or financial advice. Actual rates, fees, taxes, insurance costs and lender decisions may differ. This estimate is not a lender pre-approval or borrowing offer.
Assumptions and conventions
- Per-period rate = nominal annual rate ÷ payments per year (standard quoted-rate convention). Reducing-balance method.
- The housing-cost and debt-to-income ratios are editable planning assumptions — not lender approval rules.
- Gross (pre-tax) income is used; ownership costs are subtracted before sizing the loan.
- The loan-to-value cap converts your down payment into a maximum loan; actual limits vary by lender and country.
- Monthly payments are assumed for the affordability calculation.
- Values are calculated at full precision and rounded for display; columns may differ from totals by a small rounding amount.
What this calculator does
It works out how much mortgage your budget could support under two editable planning ratios — a housing-cost ratio (housing costs as a share of gross income) and a total debt-to-income ratio — then caps the result by your down payment through a maximum loan-to-value assumption. The tightest of those three constraints sets the estimate, and the calculator tells you which one is binding.
It also repeats the whole calculation at a stressed interest rate (your rate plus a margin you control). The suggested range runs from the stressed result to the current-rate result, because a range is more honest than one precise-looking number.
Affordability is not approval
Lenders apply their own criteria: credit history, income verification, local regulation, property type and more. The ratios here are common planning conventions, not rules — edit them to match your own comfort level, and treat the output as a budgeting aid, not a borrowing offer.
Formula
Monthly P&I budget = min(housing ratio × monthly income − ownership costs, DTI ratio × monthly income − existing debts − ownership costs).
Maximum loan = budget × (1 − (1 + i)⁻ⁿ) ÷ i — the inverse of the standard payment formula, where i is the per-period rate and n the number of payments.
Deposit cap: loan ≤ down payment × maxLTV ÷ (1 − maxLTV). Estimated price = min(income-based loan, DTI-based loan, deposit-capped loan) + down payment. The stressed scenario repeats this at rate + stress margin.
Assumptions
- The housing-cost ratio (default 28%) and debt-to-income ratio (default 36%) are editable planning assumptions — not lender approval rules.
- Gross (pre-tax) household income is used, converted to a monthly figure.
- Estimated ownership costs (tax, insurance, service charges) are subtracted from the housing budget before sizing the loan.
- The maximum loan-to-value (default 90%) is an editable assumption; actual limits vary by country and lender.
- The stress test re-runs the calculation at your rate plus the margin you set (default 2 percentage points).
- No country-specific lending regulations are applied.
Content and formulas reviewed on 2026-08-06. See our methodology for how calculations are built and tested.
Worked example
Household income 120,000 a year (10,000 a month), existing debts 500 a month, 60,000 down payment, 6% rate over 30 years, estimated ownership costs 400 a month. Housing budget: 10,000 × 28% − 400 = 2,400. DTI budget: 10,000 × 36% − 500 − 400 = 2,700. The housing ratio binds at 2,400.
A 2,400 monthly payment at 6% over 360 months supports a loan of about 400,300, so the current-rate estimate is about 460,300. At a stressed 8% the same budget supports about 327,100, for a range of roughly 387,000–460,000.
Frequently asked questions
Is this the amount a lender will approve?
No. This is a planning estimate built from ratios you can edit. Lender decisions depend on credit history, verified income, regulation and the property itself, and can be higher or lower than this estimate.
What debt payments should I include?
Recurring committed payments: car loans, personal loans, student loans, credit-card minimums, and support obligations. Day-to-day spending like groceries is not debt — it belongs in your own buffer, which you can model with the ratios or ownership-cost fields.
Should I use gross or net income?
Gross (pre-tax) income — the conventional ratios are defined against it. If you prefer to plan on take-home pay, lower the ratios accordingly rather than mixing net income with gross-income ratios.
Why does the calculator show a range?
Because a single number would be falsely precise. The high end assumes today's rate; the low end assumes the stressed rate. Buying near the low end leaves room for rates to rise and for costs you have not anticipated.
How much savings should remain after buying?
A common planning habit is keeping three to six months of essential expenses after the purchase, on top of closing costs. The Down Payment Calculator models reserves explicitly.
These estimates are for general information only and are not financial, tax, legal, or investment advice. Rates, fees, and lending rules vary by lender and country. Actual costs and outcomes may differ from the projections shown.