Loan Result
Plotly Graph
Amortization Schedule
| Month | Payment | Principal | Interest | Balance | Cumulative Interest |
|---|
Example Data Table
| Monthly Budget | Rate | Term | Taxes | Insurance | HOA | Buffer | Down Payment | Available P&I | Estimated Loan | Estimated Purchase Price |
|---|---|---|---|---|---|---|---|---|---|---|
| 2,200.00 | 6.20% | 15 years | 180.00 | 90.00 | 0.00 | 8.00% | 25,000.00 | 1,754.00 | 205,218.17 | 230,218.17 |
| 2,800.00 | 6.80% | 30 years | 240.00 | 110.00 | 60.00 | 10.00% | 40,000.00 | 2,110.00 | 323,656.77 | 363,656.77 |
| 3,600.00 | 5.90% | 20 years | 320.00 | 130.00 | 85.00 | 12.00% | 65,000.00 | 2,633.00 | 370,493.37 | 435,493.37 |
Formula Used
1. Usable monthly budget
Usable Budget = Monthly Housing Budget × (1 − Budget Buffer %)
2. Available principal and interest payment
Available P&I = Usable Budget − Property Tax − Insurance − HOA or Other Monthly Costs
3. Maximum loan amount
Monthly Rate = Annual Interest Rate ÷ 12 ÷ 100
4. Present value of the payment stream
Loan Amount = Payment × [1 − (1 + Monthly Rate)−Months] ÷ Monthly Rate
5. Zero interest version
Loan Amount = Payment × Months
6. Estimated purchase price
Purchase Price = Loan Amount + Down Payment
7. Upfront cash needed
Cash Needed = Down Payment + Closing Costs
How to Use This Calculator
- Enter the maximum amount you can spend on housing each month.
- Add the loan rate and term you want to test.
- Enter taxes, insurance, HOA dues, and any other regular monthly costs.
- Apply a buffer if you want a safer payment target.
- Add your down payment and closing costs for a fuller affordability view.
- Include annual income if you want the housing ratio shown.
- Press the calculate button to see the result above the form.
- Review the summary, graph, and amortization schedule.
- Use the CSV or PDF options to save the output.
FAQs
1. What does this calculator estimate?
It estimates the largest loan that fits your monthly housing budget after accounting for taxes, insurance, HOA costs, and your selected budget buffer.
2. Why include a budget buffer?
A buffer reduces the usable budget before loan sizing. It helps create room for repairs, utility changes, emergencies, and other ownership costs not listed separately.
3. Does the result include the down payment?
The estimated loan amount does not include the down payment. The calculator adds your down payment separately to estimate a possible purchase price.
4. What if the interest rate is zero?
The calculator switches to a simple payment times months formula. That avoids dividing by zero and still gives a correct maximum loan estimate.
5. Are closing costs part of the loan amount?
No. This version shows closing costs as upfront cash needed. It does not roll them into the estimated loan balance.
6. What is the housing ratio?
Housing ratio compares monthly housing cost with gross monthly income. It helps you judge whether the payment level looks realistic for your income.
7. Why is the estimated purchase price higher than the loan?
Purchase price equals the estimated loan plus your down payment. The loan covers financed value, while the down payment fills the remaining amount.
8. Can I use this for quick scenario testing?
Yes. Change the budget, rate, term, or costs to compare several borrowing scenarios quickly before speaking with a lender or advisor.