How to use it
- Enter your annual income and other monthly debt amounts.
- Set your desired down‑payment percentage, interest rate, and loan term.
- Click calculate to see the maximum home price you can afford.
- Use the result to guide your house‑hunting budget.
What it does – The calculator takes your annual income, down‑payment percentage, loan interest, term, and any other monthly debt to tell you the highest purchase price that still meets the 28 % housing‑expense rule and the 36 % total‑debt‑to‑income rule. Why it matters – Knowing this ceiling helps you focus on homes that won’t stretch your budget, keeps you eligible for lenders, and avoids surprise payments later. How to read the result – The number shown is the maximum price you could bid on; subtract your down‑payment to see the loan amount the amortization will support. Use it early in your search to set realistic expectations and negotiate confidently. You can also experiment with different down‑payment percentages or loan terms to see how each factor expands or shrinks your buying power. The tool updates instantly, so you can compare scenarios side‑by‑side without spreadsheets.
Pro tips
- Round your down‑payment percent to the nearest whole number for quicker estimates.
- Enter other debt as the total of credit‑card, car, and student loan payments.
- If your calculated price seems high, double‑check the 36 % DTI limit with all debts included.
- Remember the 28 % rule applies to housing costs only, not total debt.
Real-life examples
- First‑time buyer figuring out a realistic price range before touring homes.
- Real‑estate investor evaluating whether a rental property fits financing limits.
- Couple planning to upgrade and needing to know the max purchase price they can qualify for.
Case study
Maria earned $85,000 a year, could afford $500 in other monthly debt, and planned a 20% down‑payment at 4.5% interest for 30 years. The calculator showed a max home price of $350,000, letting her focus her search and secure a loan without surprises.