Home Affordability Calculator 2026
Find out how much house you can afford based on your income, debts, down payment, and interest rate. Works for Canada, USA, UK, Australia and any country worldwide.
Your Financial Details
About This Home Affordability Calculator
Buying a home starts with understanding what you can genuinely afford, not just what a lender might be willing to give you. Those two numbers are often different. This free home affordability calculator gives you a realistic estimate of your maximum purchase price based on your gross income, down payment, interest rate, amortization period, and existing monthly debts. It applies the debt service ratio guidelines used by lenders in Canada, the USA, the UK, and Australia, and it works for any other country worldwide using the Worldwide option.
Lenders assess two key ratios when deciding how much to lend you. The Gross Debt Service ratio, called GDS, measures your housing costs as a percentage of your gross monthly income. The Total Debt Service ratio, called TDS, adds all your other monthly debts on top of housing costs and measures the combined total against your income. In Canada, the standard limits are 39 percent for GDS and 44 percent for TDS. The USA uses similar guidelines under terms like front-end and back-end ratios. This calculator shows you both ratios so you can see exactly where you stand before you apply.
To use the calculator, enter your gross annual household income, your saved down payment, the current interest rate, your preferred amortization period, your existing monthly debt payments such as car loans or student loans, and an estimate of monthly property taxes. Then hit Calculate. The results show your maximum affordable home price, expected monthly mortgage payment, both debt ratios with a visual gauge, and a full monthly payment breakdown.
Frequently Asked Questions
How much house can I actually afford?
A widely used rule of thumb is that your home should cost no more than 4 to 5 times your gross annual household income, assuming a typical down payment. However, the more accurate answer depends on your interest rate, your existing debts, and the local property tax rate. This calculator factors all of those in and gives you a number based on the same ratios your lender will use, so you can walk into any mortgage conversation knowing your realistic price range.
What is the difference between GDS and TDS?
GDS, or Gross Debt Service ratio, covers only your housing costs. It includes your mortgage payment, property taxes, heating costs, and half of any strata or condo fees, measured against your gross monthly income. TDS, or Total Debt Service ratio, adds all your other monthly debt payments to that housing number. Lenders use TDS as the final test because it reflects your complete financial picture. If your TDS is too high even with a modest mortgage, a lender may limit your borrowing or require a larger down payment.
Does a bigger down payment mean I can afford a more expensive home?
Yes, in two ways. A larger down payment reduces the loan amount, which lowers your monthly payment and your GDS ratio. It also eliminates or reduces mortgage default insurance, which is required in Canada when the down payment is less than 20 percent of the purchase price. This calculator shows you how your maximum price changes with different down payment amounts so you can plan your savings target accordingly.
Can I use this calculator if I am not in Canada, USA, UK, or Australia?
Yes. Select the Worldwide option and enter your own interest rate. The calculator uses standard affordability ratios of 32 percent for housing costs and 44 percent for total debts to estimate your maximum affordable home price. You can find your local mortgage rate on your bank’s website or your country’s central bank publications.