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MasterMath

Home Affordability Calculator

On 2,500 a month with 60,000 saved, you can afford a 200,000 home at 3.5% over 30 years — and here the deposit is the binding constraint, not the payment.

Currency and number format for

Home you can afford

—

Home you can afford—
What is holding you back—
Mortgage needed—
Monthly payment—
20% deposit—
Closing costs—

How this was worked out

    Indicative result. Lending limits, deposit requirements and closing costs vary by country and lender. Treat this as a starting point, not an offer.

    The formula

    the lower of: what the payment allows, and what the deposit plus costs allows

    Where it comes from

    Two separate limits apply and the smaller one wins. Your income caps the monthly payment, which caps the mortgage. Your savings have to cover the deposit and the closing costs, which caps the price a different way. Knowing which one binds tells you what to fix.

    How to work it out by hand

    1. Work out the payment your income allows after existing debts
    2. Turn that payment into a mortgage amount at the given rate and term
    3. Separately, see what price your savings cover as deposit plus costs
    4. Take the lower of the two

    What is worth knowing

    Which limit binds changes the advice completely. If savings are the constraint, more income will not help and saving longer will. If the payment is the constraint, a bigger deposit barely moves the ceiling and only income, rate or term will. One warning about the payment figure: this is principal and interest only. Property taxes, insurance, service charges and maintenance are real and recurring, and in some places they add 30% or more on top. Budget for the total cost of ownership, not the mortgage payment.

    Frequently asked questions

    Why does the deposit limit what I can buy?

    Because lenders finance a percentage of the price, not all of it. If you can only cover a 20% deposit on 200,000, that caps the price regardless of what your income would support.

    How much deposit do I need?

    20% avoids mortgage insurance in most markets, but many programmes accept far less — 3 to 10% is common — at the cost of insurance premiums and a higher rate.

    Does this include taxes and insurance?

    No. It shows principal and interest. Property taxes, insurance and maintenance are on top and can add a great deal.

    What about closing costs?

    They are included as a percentage of the price. Depending on the country they run from around 2% to over 10%, and they come out of the same savings as the deposit.