House Affordability Calculator — Calculations & Slabs for FY 2026-27

It is a standard lending guideline. Your housing expenses (PITI: Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross monthly income, and your total debt payments (including mortgage, credit cards, auto loans, and student loans) should not exceed 36%.

Lenders use your DTI ratio to evaluate your ability to manage monthly payments. A higher DTI indicates more of your income is committed to existing debt, which reduces the maximum mortgage balance a lender will approve. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Lenders qualify borrowers using gross (pre-tax) income. However, when planning your personal household budget, it is smart to also examine your net (take-home) pay to ensure you still have enough cash left over for monthly living expenses. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

A larger down payment increases your purchase power because it directly reduces the amount of mortgage principal you need to borrow, which keeps your monthly payment lower and may eliminate the need for costly private mortgage insurance (PMI). This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

Your total monthly housing expense is known as PITI, which stands for Principal, Interest, Property Taxes, Homeowners Insurance, and any applicable HOA or condo association dues. Standard calculations include all of these items. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.