Measure borrowing power from income and debts. Test rates, terms, taxes, insurance, and down payment. Choose a realistic target before speaking with lenders directly.
Use gross income and recurring debts. The calculator compares front-end and back-end debt ratios, then estimates the largest payment and property price you can support.
The first chart breaks down your monthly housing budget. The second chart shows how estimated borrowing power changes across nearby interest rates. Example values appear before the first calculation.
This example uses the prefilled values so you can check how each assumption affects the estimated budget, loan size, and home price.
| Item | Example value |
|---|---|
| Gross monthly income | $9,200.00 |
| Other monthly debts | $650.00 |
| Front-end ratio | 28.00% |
| Back-end ratio | 36.00% |
| Interest rate | 6.50% |
| Loan term | 30 years |
| Annual property tax | $4,800.00 |
| Annual home insurance | $1,800.00 |
| Monthly HOA | $110.00 |
| Monthly PMI | $90.00 |
| Monthly reserve allowance | $100.00 |
| Available cash | $70,000.00 |
| Closing costs | 3.00% |
| Estimated housing budget | $2,576.00 |
| Estimated maximum loan | $273,071.87 |
| Estimated maximum home price | $333,079.49 |
The tool first determines an affordable monthly housing budget, then converts the remaining principal-and-interest payment into a loan amount.
It is the largest monthly housing payment you can reasonably support from gross income after considering debt-ratio rules and recurring housing costs.
Front-end ratio limits housing alone. Back-end ratio limits housing plus other debts. The lower result becomes the safer affordability ceiling.
Lenders and buyers usually evaluate full housing cost, not just principal and interest. Ignoring these items can overstate affordability.
Yes. More cash can increase the affordable purchase price because it supports a larger down payment after estimated closing costs are deducted.
Higher rates reduce the loan amount supported by the same payment. Lower rates usually increase borrowing power. The sensitivity chart illustrates that effect.
For lender-style debt ratios, gross income is the common input. For stricter personal budgeting, you may compare the result against take-home pay separately.
No. Capacity shows an estimated ceiling. A comfortable target may be lower if you expect repairs, childcare costs, variable income, or future rate changes.
No. Final approval depends on credit score, underwriting rules, reserves, property details, employment history, and current lending guidelines.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.