How the Buying Power Calculator works

See how rate, down payment, and debts change your buying power.

Show the math

Formula

Max loan = target monthly payment × [(1 − (1 + r)^−n) / r]. Add your down payment for the maximum purchase price.

Inputs

Target monthly payment
Interest rate (%)
Loan term (years)
Down payment

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

DTI (Debt-to-Income Ratio): The share of your gross monthly income taken up by monthly debt payments, including the proposed housing payment.
Down payment: The share of the purchase price you pay in cash, becoming your starting equity in the property.
Interest rate (note rate): The percentage charged on your loan balance, the number your principal and interest payment is calculated from.

Browse the full real estate glossary

Enter Your Financial Information

Annual Income

Monthly Debt Payments

Available Down Payment

Credit Score

Loan Program

Expected Interest Rate

Loan Term (years)

Property Tax Rate (% of home value)

Homeowners Insurance Rate (% of home value)

About Buying Power

How It Works:

Uses the debt-to-income limits for the loan program you select
Considers your credit score impact on rates
Accounts for property taxes and insurance
Provides conservative recommendations
Calculates maximum affordable home price

Important Factors:

Credit score affects interest rates
Down payment size impacts loan terms
Property taxes vary by location
Insurance costs depend on coverage
Consider future income stability

How the Buying Power Calculator works

See how rate, down payment, and debts change your buying power.

Show the math

Formula

Max loan = target monthly payment × [(1 − (1 + r)^−n) / r]. Add your down payment for the maximum purchase price.

Inputs

Target monthly payment
Interest rate (%)
Loan term (years)
Down payment

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

DTI (Debt-to-Income Ratio)

The share of your gross monthly income taken up by monthly debt payments, including the proposed housing payment.

Down payment

The share of the purchase price you pay in cash, becoming your starting equity in the property.

Interest rate (note rate)

The percentage charged on your loan balance, the number your principal and interest payment is calculated from.