Answer first

Estimate a planning range from income, existing commitments, deposit and a chosen payment ceiling. It is not a lender approval score.

Editable planning tool

Home affordability estimate

Change the illustrative values. Nothing you enter is sent or stored; measurement records only the tool name and formula version.

Results will appear here after calculation.

Formula and assumptions

Formula ID: reducing-balance-affordability@1.1.0

Calculations use unrounded intermediate values. Ringgit and percentage outputs are rounded to two decimal places; break-even months are rounded up. A displayed monthly amount multiplied by tenure may therefore differ slightly from the displayed total.

  • The monthly budget is held constant for the full tenure.
  • The rate is held constant and divided into monthly periods.
  • Deposit is added to the estimated borrowing capacity.
  • Inputs support tenures up to 600 months, annual rates up to 100%, and ringgit amounts to sen precision.
  • Fees, taxes, insurance and lender eligibility rules are excluded.

How to decide

Affordability should survive ordinary expenses and a rate stress, not merely fit a maximum ratio. Users choose the ceiling because lender methods differ.

A practical process

Calculate net income less existing commitments; apply the user’s housing-payment ceiling; convert that payment to principal at both input and stressed rates; add deposit.

Limits and next step

A bank may count income and commitments differently and can approve less or decline. Check the linked primary source and its captured date before making a commitment.

Malaysian worked example

Show the working

Inputs

  • net income RM6,000
  • existing commitments RM1,200
  • housing ceiling 30% of net income
  • 4% for 35 years

Calculation

  1. ceiling = RM1,800
  2. estimated principal = RM406,527.25
  3. with RM50,000 deposit, price range = RM456,527.25

Reviewed resultThe planning price is about RM456,500 before purchase costs and stress adjustment.

A bank may count income and commitments differently and can approve less or decline.

Verify

Sources and update record