Mortgage Affordability Calculator
Calculate the maximum home price based on your income, debts, and down payment using the 28/36 rule.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Car loans, student loans, credit cards, etc.
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Max Home Price by Strategy
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Monthly Housing Breakdown
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Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Max Home Price
- €233,678
- Monthly Housing
- €980
- % of Income
- 28.0%
- DTI Ratio
- 39.4%
- Financial Risk
- Low
- Max Home Price
- €175,371
- Monthly Housing
- €860
- % of Income
- 24.6%
- DTI Ratio
- 36.0%
- Financial Risk
- Moderate
- Max Home Price
- €209,994
- Monthly Housing
- €860
- % of Income
- 36.0%
- DTI Ratio
- 36.0%
- Financial Risk
- High
| Factor | Conservative (28%) Best Value | Recommended Your Target | Aggressive (36% DTI) Most Flexible |
|---|---|---|---|
| Max Home Price | €233,678 | €175,371 | €209,994 |
| Monthly Housing | €980 | €860 | €860 |
| % of Income | 28.0% | 24.6% | 36.0% |
| DTI Ratio | 39.4% | 36.0% | 36.0% |
| Financial Risk | Low | Moderate | High |
Based on €3500/month income and €400/month existing debts, you can afford a home up to €175371 (€115371 loan + €60000 down). Your total housing payment would be €860/month (25% of income, DTI 36%). This fits within both the 28/36 guidelines. A conservative budget of €233678 leaves more room for savings and emergencies.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
1% lower mortgage rate
At stated values
1% higher mortgage rate
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
What Moves the Needle Most
How much each factor changes your Max Affordable Home across its full range. Down Payment has the biggest impact.
Focus your attention on Down Payment — getting it right matters most. Factors lower down move the result less, so rough estimates there are fine.
Confidence & Assumptions
The outcome is fairly stable across best and worst cases — this is a robust decision.
Max Home Price: €157,834 (worst) → €175,371 (expected) → €192,908 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
This calculator determines the maximum home price you can afford based on your income, existing debts, down payment, and the industry-standard 28/36 rule.
How the calculation works
The 28% rule limits housing costs to 28% of gross income. The 36% rule limits total debt (housing + other) to 36%. We calculate the maximum loan and home price that fits both constraints.
Formula
Max Housing Payment = min(Income × 28%, Income × 36% − Other Debts) Max Loan = Payment × [(1+r)^n − 1] / [r × (1+r)^n] Max Home = Max Loan + Down Payment
Example
€6,000/month income, €400/month debts, €60,000 down, 4.5% rate, 30 years: Max home ≈ €380,000. Monthly housing ≈ €1,680 (28% of income).
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for Mortgage Affordability Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
The 28% rule limits housing costs to 28% of gross income. The 36% rule limits total debt (housing + other) to 36%. We calculate the maximum loan and home price that fits both constraints.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: €6,000/month income, €400/month debts, €60,000 down, 4.5% rate, 30 years: Max home ≈ €380,000. Monthly housing ≈ €1,680 (28% of income).
Factors to Consider
- Lenders use gross income — your take-home is lower
- 20% down avoids PMI and reduces monthly costs
- Property tax and insurance vary significantly by location
- Maintenance (1-2% of home value/year) is not in the mortgage payment
- Shorter loan terms mean higher payments but less total interest
Common Mistakes
- Using the maximum the bank approves instead of what you can comfortably afford
- Forgetting closing costs (2-5% on top of down payment)
- Not budgeting for maintenance, utilities, and moving costs
- Ignoring rate risk with variable-rate mortgages
- Counting bonus income that is not guaranteed
Frequently Asked Questions
What is the 28/36 rule?+
Spend no more than 28% of gross income on housing, and no more than 36% on total debt including housing. Most lenders use this as a guideline.
How much down payment do I need?+
20% avoids PMI and gets better rates. Some programmes allow 3-5% down, but monthly costs will be higher.
Should I buy at my maximum?+
No. Buying below your max leaves room for savings, emergencies, and lifestyle. Many experts recommend 25% of income for housing.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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