MCPCalc

Mortgage Affordability Calculator

How much house you can afford based on income, debts, down payment, and interest rate.

Scratchpad (not saved)

$

Your total annual income before taxes

$

Car payments, student loans, credit cards, etc.

$

Amount you have for a down payment

%

Expected mortgage interest rate

Length of the mortgage

%

Maximum debt-to-income ratio (typically 36%)

Additional Costs
%

Annual property tax as percentage of home value

$

Annual homeowners insurance premium

What This Calculator Does

Estimate the home price range you can support using income, debt obligations, down payment, and financing assumptions.

It combines Annual Gross Income, Monthly Debt Payments, Down Payment, Interest Rate to estimate Maximum Home Price, Maximum Loan Amount, Down Payment.

Formula & Method

Core equations: Maximum mortgage payment is constrained by DTI: M_{max} = I_{monthly} \times DTI - D_{monthly} where I_{monthly} is gross monthly income and D_{monthly} is existing monthly debts. The calculator then solves iteratively for the maximum home price including property tax and insurance. Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Maximum Home Price; x_{1} = Annual Gross Income; x_{2} = Monthly Debt Payments; x_{3} = Down Payment; x_{4} = Interest Rate; x_{5} = Loan Term; x_{6} = Max DTI Ratio.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this early in your home search to set realistic budget boundaries before shopping listings or requesting pre-approval.

Inputs Used

  • Annual Gross Income: Your total annual income before taxes
  • Monthly Debt Payments: Car payments, student loans, credit cards, etc.
  • Down Payment: Amount you have for a down payment
  • Interest Rate: Expected mortgage interest rate
  • Loan Term: Length of the mortgage
  • Max DTI Ratio: Maximum debt-to-income ratio (typically 36%)
  • Property Tax Rate: Annual property tax as percentage of home value
  • Annual Insurance: Annual homeowners insurance premium

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