Why Home Affordability Matters
Buying a home isn’t just about what a bank will approve — it’s about what keeps your financial margin healthy.
Many lenders use gross income when qualifying buyers, which can overstate what you can realistically handle month to month.
We built this tool using take-home income instead. It aligns with Wealth Wallaby’s values-based approach, keeping your housing costs under roughly 25% of your net income so you can still save, give, and live comfortably.
Why We Built This Tool
Real-world affordability, not theory
By basing housing cost on 25% of your take-home income rather than 28% of gross, this tool anchors your home-buying budget in what you actually have after taxes.
Preserves your financial margin
Keeping housing costs modest leaves room for savings, retirement, debt-paydown and life’s unexpected expenses — so your home supports your financial freedom rather than shrinking it.
Simple and actionable snapshot
Enter your income, loan term, rate and down payment and instantly see your max monthly payment and estimated home price — giving you clarity and confidence before you shop.
Frequently Asked Questions
What does this calculator measure?
This tool estimates the maximum home price you can comfortably afford based on your take-home pay, loan details, and other key financial factors. It’s designed to give you a realistic view of affordability — not just what a lender might approve.
Why does it use 25% of income for housing?
Wealth Wallaby uses a 25% cap to protect your financial margin. Many lenders stretch that to 28–33% of gross income, but that often leads to tight budgets and delayed savings goals. Staying at or below 25% helps balance comfort and long-term security.
How accurate is the estimate?
It’s a reliable financial planning guide, not a loan approval figure. Actual amounts may vary based on property taxes, insurance, HOA fees, or specific loan programs. Still, it’s an excellent benchmark for your ideal housing budget.
Should I include my spouse’s income?
If you plan to apply for a mortgage together, yes — combine your take-home pay to see what’s realistic for your household. If you’re buying solo, enter only your individual income for an accurate estimate.
What’s the best next step after using the calculator?
Use your results as a guardrail, not a limit. From here, you can build your savings plan, pay down debt, and talk with a trusted lender — all while keeping your housing costs in line with your long-term financial goals.
Not sure what this means for your next move?
A single number doesn’t tell the full story. In a free coaching session, we’ll help you interpret your results, see how they fit your budget, and create a plan that keeps your savings, lifestyle, and long-term goals on track.
This calculator is for educational purposes only. It’s not financial advice. Results are estimates and may vary based on real-world factors. Consult a qualified advisor before making investment or retirement decisions.