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Mortgage Affordability

Find out how much house you can afford with our Mortgage Affordability Calculator. By analyzing your income, expenses, and debts, this tool helps you determine a realistic home-buying budget so you can shop with confidence and avoid overextending your finances.



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Monthly Payment

0.00

Total Payment: 0.00

Total Interest: 0.00

You can afford a loan of: $0.00

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What is Mortgage Affordability Calculator

A Mortgage Affordability Calculator is an essential financial tool designed to help prospective homebuyers understand how much they can realistically borrow based on their financial profile. Unlike mortgage payment calculators that focus on your monthly payment, affordability calculators take a broader look at your financial situation—factoring in your income, monthly obligations, debts, and lifestyle costs.

It’s a powerful way to avoid the common pitfall of falling in love with a home outside your budget. This calculator empowers you to set a price range before you begin house hunting, saving you time and preventing financial strain down the line. It’s especially useful in competitive housing markets, where knowing your maximum affordability gives you a negotiating edge.




How it works

Mortgage Affordability Calculator

The Mortgage Affordability Calculator works by evaluating your gross income, existing monthly debts, and housing-related expenses to calculate the maximum mortgage amount you can afford. When you enter your household income, the tool considers how much of that income is available for mortgage payments without exceeding lender-recommended debt ratios. It then asks for details such as existing monthly debt payments (like car loans, student loans, or credit cards) and estimates of property taxes, heating costs, and insurance premiums.

By calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios—the two main affordability benchmarks used by lenders—the calculator shows you a price range for homes that fit comfortably within your financial limits. It also adjusts based on your down payment, interest rate, and amortization period. The final result gives you a clear idea of the home price you can afford without compromising your lifestyle or future financial stability.



Frequently Asked Questions

What is the difference between a mortgage affordability calculator and a mortgage payment calculator Toggle
A mortgage affordability calculator determines how much home you can afford based on your income and debts, while a mortgage payment calculator estimates your monthly payment based on a specific loan amount and terms.
How accurate is the mortgage affordability calculator Toggle
It provides a strong estimate based on standard lending rules, but actual mortgage approval depends on your credit score, savings, employment status, and lender policies.
What financial details do I need to use this calculator Toggle
You’ll need your total household income, estimated monthly debts, property tax expectations, utility costs, and a rough idea of your desired down payment and mortgage term.
Can this calculator help with budgeting beyond the mortgage itself Toggle
Yes. It encourages responsible budgeting by showing you how your mortgage fits into your overall financial picture, including other debts and household expenses.
Why do lenders care about debt service ratios Toggle
Debt service ratios help lenders ensure that you won’t be overburdened by housing costs or debt repayments. Staying within these ratios protects both you and the lender from potential default.