Mortgage affordability calculator
Find out how much house you can afford based on your income, debts, and down payment. Calculate maximum loan, required salary, and monthly payment instantly.
Your financial details
Before tax / combined household income
Car loans, credit cards, personal loans etc.
Additional monthly costs
Maximum home price you can afford
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Enter your details to calculate
Max loan amount
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Monthly EMI
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Down payment needed
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Total housing cost/mo
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Total interest paid
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Total amount payable
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Debt-to-income ratio (DTI)
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0%28% housing36% good43% max50%+
Enter your details
Fill in your income and loan details to see your affordability verdict.
Monthly payment breakdown
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per month
Minimum salary required for different home prices
Decision Support
Check your DTI ratio, not just the loan amount
A large approved loan with a DTI close to 43% leaves little room for a rate increase, income disruption, or unexpected expenses — a lower DTI is a safer target even if it means a smaller loan.
Compare "afford" against "qualify" mode
The maximum you're approved for and the home price you're actually comfortable with can be different numbers — check both modes before deciding on a target price.
A bigger down payment changes more than the loan size
Beyond reducing the loan amount, 20%+ down typically eliminates PMI/mortgage insurance and can improve your approved interest rate — factor both into the comparison, not just the smaller monthly payment.
➜ Next step: Once you know your target price range, explore Sharia-compliant financing options, or compare specific loan offers side by side with the Loan EMI Comparison Calculator.
How mortgage affordability is calculated
Mortgage affordability is determined by your income, existing debts, down payment, interest rate, and loan tenure. Lenders use standardized rules to ensure your monthly mortgage payment remains manageable relative to your income.
The key affordability rules
28% housing rule
Your total monthly housing cost (EMI + insurance + taxes) should not exceed 28% of your gross monthly income. This is the front-end debt-to-income ratio.
36% total debt rule
All monthly debt payments combined (mortgage + car loans + credit cards + student loans) should not exceed 36% of gross income. This is the back-end DTI.
43% maximum DTI
Most banks will not approve a mortgage if your total DTI exceeds 43%. Some lenders allow up to 50% for strong credit profiles, but this is risky territory.
20% down payment rule
A 20% down payment is the gold standard — it eliminates PMI/insurance requirements, reduces monthly payments, and signals financial stability to lenders.
Tips to improve mortgage affordability
Increasing your down payment directly reduces the loan amount and monthly EMI. Paying off existing debts improves your DTI ratio and may qualify you for a larger loan. Choosing a longer tenure reduces monthly payments but increases total interest. A co-borrower (spouse or family member) can combine income to qualify for a larger loan.
Common Mistakes
Treating the maximum approved amount as the target
The largest loan you qualify for often leaves little financial cushion — a more conservative DTI leaves room for rate changes, job transitions, and unexpected expenses.
Forgetting property tax and insurance in the budget
These are included in this calculator's housing-ratio math, but if you're sanity-checking numbers elsewhere, don't compare a principal-and-interest-only figure against this tool's results.
Ignoring existing debt's impact on affordability
Car loans, student loans, and credit card balances all reduce how much mortgage you can qualify for under the 43% DTI rule — pay down high-interest debt first if you're close to the limit.
Not comparing all three modes
"How much can I afford," "can I afford this home," and "income needed" each answer a different question — check the one that matches what you're actually deciding, not just the default.
References
🏛️ Consumer Financial Protection Bureau
U.S. mortgage affordability and DTI standards — consumerfinance.gov
📄 Your lender's pre-qualification
For your actual approved amount, get pre-qualified with a lender rather than relying on an estimate alone.
Last updated: 15 July 2026 · Uses standard 28/36/43% DTI thresholds — some lenders allow higher limits for strong credit profiles.
Frequently asked questions
Most banks follow the 28/36 rule: your mortgage payment should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. If your monthly salary is PKR 150,000, your maximum mortgage payment should be around PKR 42,000. Use this calculator to find your exact affordability.
The DTI ratio is the percentage of gross monthly income that goes toward debt payments. Most lenders require a maximum DTI of 43% including the new mortgage. Below 36% is considered good, and below 28% for housing alone is ideal. A high DTI reduces how much mortgage you can qualify for.
Most banks require 10% to 30% of the property price. In Pakistan, banks typically require 20–30%. In the UK, 10% is common for first-time buyers while 20–25% gets better rates. A larger down payment reduces your loan, monthly payment, and total interest paid.
The 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt. Following this rule ensures your mortgage remains manageable even if your financial situation changes.
For a PKR 10 million home with 20% down (PKR 2M), you need an PKR 8M loan. At 20% interest for 15 years, the monthly EMI is approximately PKR 96,000. Using the 28% housing rule, you need a gross monthly income of at least PKR 342,000, or about PKR 4.1M annually.
Yes — your credit score directly affects the interest rate offered, which significantly impacts affordability. A higher credit score means a lower rate, reducing monthly payment and allowing a larger loan. In Pakistan and South Asia, credit history with banks and the eCIB score are key factors in mortgage approval.