Build a realistic buy box using debt ratios, cash to close, and reserve planning
Size the payment against both housing-only and total-debt ratios.
Model down payment, estimated closing costs, and your reserve cushion after the purchase.
Include the monthly ownership costs that sit on top of principal and interest.
Target purchase range
Based on an all-in housing payment around $2,570 per month.
Target loan
$283,154
Reserve after
$31,171
Compare a conservative buy box, your current target, and the upper edge of what the ratios allow.
Conservative
25% / 33% ratios
This range leaves room for closing cash and a healthier reserve cushion after the purchase.
Target
28% / 36% ratios
This range leaves room for closing cash and a healthier reserve cushion after the purchase.
Stretch
31% / 43% ratios
This range leaves room for closing cash and a healthier reserve cushion after the purchase.
Keep the same debt and cash assumptions, then see how changes in rate shift your buy box.
| Rate | Home price | Loan amount | Housing budget |
|---|---|---|---|
| 5.250% | $383,019 | $313,019 | $2,570 |
| 5.750% | $367,520 | $297,520 | $2,570 |
| 6.250% | $353,154 | $283,154 | $2,570 |
| 6.750% | $360,627 | $290,627 | $2,570 |
| 7.250% | $346,322 | $276,322 | $2,570 |
At a glance
Budget sizing
This calculator starts from your income, debts, and housing costs to estimate a home price range that fits common lender guidelines.
Typical Use
About 1 minute
Best For
Setting a target budget before shopping or seeking pre-approval
Main Output
Estimated affordable payment and home price range
Built Around
Standard mortgage math and planning assumptions
Source notes and methodology details are available on our references page.
Our calculations follow the Truth in Lending Act (TILA) guidelines and use standard financial formulas employed by major lending institutions.
Monthly Payment Calculation
M = P[r(1+r)^n]/[(1+r)^n-1]Where M = monthly payment, P = principal loan amount, r = monthly interest rate, n = number of payments
Amortization Schedule
Standard declining balance methodEach payment is split between interest (calculated on remaining balance) and principal reduction
APR Estimation
Includes interest + fees over loan termAnnual Percentage Rate calculations include all financing charges as required by Truth in Lending Act (TILA)
Content is published under the MortgageCalcMaster editorial team workflow, currently led by the site operator, reviewed against public mortgage and consumer-finance sources, and updated when assumptions, formulas, or product behavior materially change.
Last reviewed: March 2026. All calculators and guides are intended for education and planning. They do not replace lender disclosures or advice from licensed professionals. Learn more about our editorial process
Enter your gross monthly income and all recurring monthly debt obligations.
Add the cash you have available, your planned down payment, and an estimated closing-cost percentage.
Enter the ownership costs for the type of home you are targeting: property tax, insurance, and HOA dues.
Set front-end and back-end DTI targets to reflect how conservative or aggressive you want to be.
Compare the conservative, target, and stretch scenarios instead of relying on a single headline number.
Use the rate-sensitivity table to see how much purchase power you gain or lose as rates move.
This calculator provides estimates based on standard formulas. Actual loan terms may vary based on your credit score, lender policies, and market conditions. Always consult with a qualified mortgage professional before making financial decisions.
Use these guides to turn the affordability output into a safer purchase decision.
Build a buy box around payment comfort, reserves, and loan-fit before you shop.
Compare loan programs after you understand your real budget limits.
See how settlement cash and reserves can shrink the headline price range.
FAQ
These answers explain the assumptions behind the calculator so users can interpret the output with the right context.
This version still uses front-end and back-end debt ratios, but it also accounts for down payment, estimated closing costs, property tax, homeowners insurance, HOA dues, and how much reserve cash you would keep after closing.
A payment can fit your income on paper and still be risky if the purchase drains nearly all of your cash. Reserve cash helps cover repairs, moving costs, income interruptions, and other surprises after closing.
Most buyers should treat the target scenario as the working budget and use the stretch scenario only as an outer boundary. If the stretch scenario leaves thin reserves or pushes DTI too high, it is better viewed as lender capacity than a comfortable buy box.