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Home Affordability Calculator

Determine the maximum home price you can afford based on your income, debts, and financial situation using industry-standard debt-to-income ratios.

Income Details

£
Before taxes and deductions
£
Rental income, side business, etc.

Monthly Debt Obligations

£
Minimum monthly payments
£
£
£
Personal loans, alimony, etc.

Down Payment & Savings

£

Mortgage Details

%
years

Housing Costs

£
£
£

Affordability Rules

%
Max housing costs as % of gross income
%
Max total debt as % of gross income
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Results will appear here

Enter your income, debts, and down payment to see what home price you can afford.

Understanding Home Affordability

📊 Debt-to-Income Ratios

  • Front-End Ratio: Housing costs ÷ gross income (typically ≤28%)
  • Back-End Ratio: Total monthly debts ÷ gross income (typically ≤36%)
  • Conservative approach: Lower ratios provide more financial cushion
  • Lender flexibility: Some allow up to 43% back-end ratio

🏠 Housing Costs Include

  • Principal & Interest: Monthly mortgage payment
  • Property Tax: Annual tax divided by 12
  • Home Insurance: Monthly premium
  • PMI: Private Mortgage Insurance (if down payment <20%)
  • HOA Fees: Homeowners Association dues

💰 Down Payment Considerations

  • 20% down: Avoids PMI, better rates
  • 10-15% down: Still acceptable, may require PMI
  • 5-10% down: First-time buyer programmes
  • 3% down: Conventional loan minimum

⚠️ Additional Considerations

  • Emergency fund for unexpected expenses
  • Moving costs and home setup expenses
  • Higher utility costs vs. renting
  • Maintenance and repair responsibilities