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
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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
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