Estimate how much you might borrow using 28/36 debt-to-income guidelines and a fixed-rate loan payment formula. Free, instant results.
Enter your gross monthly income, existing monthly debt payments (loans, cards, car finance), assumed annual interest rate and loan term in years. The calculator caps the housing payment at the lower of 28% of gross income or 36% of gross minus existing debts, then converts that payment into an approximate loan principal.
Heuristics help you sanity-check listings before speaking to a broker. They are not a substitute for a formal agreement in principle or mortgage offer.
Deposit size, stamp duty or transfer tax, legal fees, moving costs and an emergency buffer all affect what you can safely borrow. Variable-rate mortgages add interest risk that static calculators do not fully capture.
If rates rise, stress-test yourself at +2% or +3% to see if payments remain comfortable. Consider building retirement and pension contributions into your budget before maximising loan size.
Source: https://www.consumerfinance.gov/owning-a-home/
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