Housing Budget Calculator Guide
Building a housing budget is about more than just rent or mortgage payments. You also need to plan for bills, insurance, maintenance and savings. This guide shows how to structure a housing budget and use the HouseBudget Calculator as a quick starting point.
Start with your take-home income
Note your reliable monthly income after tax. Many people aim to keep total housing costs within 25–35% of take-home pay, adjusting lower if debts or childcare costs are high.
List your essential housing costs
- Rent or mortgage: use the calculator to estimate a sensible monthly figure.
- Council tax and utilities: check recent bills or local averages.
- Insurance and service charges: include contents or buildings insurance, plus any service charges or ground rent.
- Maintenance and repairs: owners might set aside 1% of property value per year; renters may just need a small buffer for minor costs.
Add savings and goals
A strong budget sets aside money for emergencies and future plans. Consider allocating a portion of income to an emergency fund, overpayments, or saving for upgrades and furnishings.
Use the calculator to set your headline number
- Enter your income and debts into the HouseBudget Calculator.
- Choose a target percentage for housing to see a suggested rent or mortgage payment.
- Adjust the percentage until the suggested payment leaves room for bills and savings.
- Plug the final payment into your budget alongside other housing costs.
Review regularly
Revisit your housing budget when bills change, a tenancy renews or a mortgage fix ends. Rerunning the calculator with updated numbers keeps your plan realistic.
Key reminders
- Keep a buffer for unexpected repairs or energy swings.
- Be cautious if housing costs push past 35% of take-home pay.
- Use the calculator’s rent and mortgage sliders to test best- and worst-case scenarios.