Home Buying Budget Calculator (by Income)
Enter your annual income to estimate an affordable home price, loan amount, and monthly payment. Set your debt-to-income ratio (20%, 25%, 30%), interest rate, loan term, and down payment.
Input
Debt-to-income ratio (annual payment vs. income)
%
%
yrs
Leave it at 0 if you have no down payment.
Result
Estimated home price (at 25% ratio)
$44,281,379
Loan amount
$44,281,379
Monthly payment
$125,000
Annual payment
$1,500,000
How it works
- The debt-to-income ratio is the share of your annual income that goes to loan repayment. Annual payment = annual income × ratio, and monthly payment = annual payment ÷ 12.
- The borrowable amount is estimated from the monthly payment, the annual interest rate, and the loan term using the standard amortized (equal-payment) loan formula. The estimated home price is the borrowable amount plus your down payment.
- A ratio of 20–25% is generally considered comfortable, while lenders often allow up to about 30–35%. The calculation is based on gross (pre-tax) annual income, not take-home pay.
- The interest rate here is for estimation only. Lenders may qualify you at a higher stress-test rate, so your actual approved amount can be lower than this estimate.
- The monthly payment shown does not include property taxes, insurance, maintenance, HOA fees, or closing costs. Add these when planning your real budget.
- All figures are rough estimates. Your actual affordability depends on age, other debts, employment history, and the property. Always confirm with a lender before borrowing.
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Home Buying Budget Calculator (by Income)