1. What is Property Affordability?

Property affordability in Pakistan measures how much money remains after deducting expenses from income, indicating your capacity for property investment or rental payments.

2. How Does the Calculator Work?

The calculator uses the simple affordability formula:

Where:

• \( Income \) — Total monthly income in USD
• \( Expenses \) — Total monthly expenses in USD

Explanation: This basic calculation shows your disposable income that could be allocated toward property costs.

3. Importance of Affordability Calculation

Details: Understanding your affordability helps in making informed decisions about property purchases or rentals without overextending your finances.

4. Using the Calculator

Tips: Enter your accurate monthly income and expenses in USD. The calculator will show how much you can afford to spend on property each month.

5. Frequently Asked Questions (FAQ)

Q1: What percentage of income should go to housing in Pakistan?
A: Financial experts typically recommend spending no more than 30-40% of your monthly income on housing.

Q2: Does this include utility bills?
A: This calculator shows total disposable income. You should account for utilities separately from your base expenses.

Q3: How accurate is this for Pakistani cities?
A: While basic, it provides a starting point. Consider local cost variations between cities like Karachi, Lahore, and Islamabad.

Q4: Should I include taxes in expenses?
A: Yes, include all regular monthly obligations for accurate affordability assessment.

Q5: How does this help with property investment?
A: Knowing your affordability helps determine realistic property price ranges and mortgage capabilities.