What Can I Afford Mortgage Calculator

Introduction: Deciding on a home purchase involves more than just the property’s listing price. Our What Can I Afford Mortgage Calculator helps you assess how much home you can afford by considering your annual income, expenses, down payment, interest rate, and loan term.

Formula: The calculator uses a common affordability guideline, where the affordable monthly payment is set at 28% of your gross monthly income. It then calculates the maximum loan amount based on this payment and the provided down payment, interest rate, and loan term.

How to Use:

  1. Enter your annual income.
  2. Input your annual expenses.
  3. Specify the down payment percentage you can afford.
  4. Enter the annual interest rate you expect.
  5. Specify the loan term in years.
  6. Click the “Calculate” button.
  7. The affordable home price you can consider will be displayed.

Example: Suppose you have an annual income of $80,000, annual expenses of $30,000, can afford a 20% down payment, expect an interest rate of 3.5%, and plan for a 30-year loan term. Clicking “Calculate” will show the affordable home price based on these parameters.


  1. What is the 28% affordability guideline?
    • The guideline suggests that your affordable monthly housing payment, including principal, interest, property taxes, and insurance, should not exceed 28% of your gross monthly income.
  2. Why is the down payment percentage important?
    • A higher down payment reduces the loan amount, which impacts the monthly payment and overall affordability.
  3. Can I include other debts in the expenses field?
    • The expenses field is intended for annual living expenses, not other debts. Consider those separately when assessing your overall financial situation.
  4. Is the interest rate fixed throughout the loan term?
    • Yes, the calculator assumes a fixed interest rate for simplicity. In reality, rates may vary.
  5. What happens if I cannot afford a 20% down payment?
    • Adjust the down payment percentage to a value that aligns with your financial situation. Keep in mind that a higher down payment generally improves affordability.
  6. Can I use this calculator for different currencies?
    • The calculator assumes the input and result currency is the same as the home price entered.
  7. Does this calculator account for property taxes and insurance?
    • No, the calculator focuses on the loan amount and monthly payment. Consider property taxes and insurance separately for a comprehensive budget.
  8. Is there a maximum loan term I should consider?
    • While longer loan terms may result in a lower monthly payment, consider choosing a term that aligns with your financial goals and timeline.
  9. What if my income and expenses change in the future?
    • It’s advisable to regularly reassess your financial situation, especially if there are significant changes in income or expenses.
  10. Can I use this calculator for investment properties?
    • This calculator is designed for primary residences. Consider additional factors when assessing affordability for investment properties.

Conclusion: Our What Can I Afford Mortgage Calculator is a valuable tool for prospective homebuyers. By considering your financial details, it provides a realistic estimate of the home price you can comfortably afford, helping you make informed decisions in your home search.

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