Use this calculator to estimate the maximum mortgage amount you can afford based on your income, debts, and desired monthly payment. Remember, this is an estimate, and actual loan approval depends on lender specific criteria.
Your Estimated Maximum Mortgage Affordability:
$0
Important Considerations:
Debt-to-Income Ratio (DTI): Lenders often use DTI to assess affordability. A common guideline is a total DTI (including proposed mortgage payment) below 43%. This calculator provides an estimate that aligns with general DTI guidelines.
Interest Rate Fluctuations: The interest rate significantly impacts your monthly payment and the total amount you can borrow.
Loan Term: A longer loan term (e.g., 30 years vs. 15 years) generally allows for a larger loan amount but results in more interest paid over time.
Down Payment: A larger down payment reduces the amount you need to borrow, increasing your purchasing power.
Closing Costs and Fees: This calculator does not include closing costs, property taxes, homeowner's insurance, or private mortgage insurance (PMI), which will increase your overall monthly housing expense.
Lender Specifics: This is a general estimate. Your actual borrowing capacity will be determined by the specific lender based on their underwriting guidelines, credit score, employment history, and other factors.
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 15px;
}
.calculator-container p {
color: #555;
line-height: 1.6;
}
.calculator-inputs {
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
display: flex;
align-items: center;
gap: 10px;
}
.input-group label {
display: block;
margin-bottom: 5px;
color: #444;
flex-basis: 150px; /* Fixed width for labels */
text-align: right;
}
.input-group input[type="number"] {
flex-grow: 1;
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box; /* Include padding and border in element's total width and height */
}
button {
display: block;
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 16px;
margin-top: 10px;
transition: background-color 0.3s ease;
}
button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
border: 1px solid #e0e0e0;
border-radius: 5px;
background-color: #fff;
}
.calculator-result h3 {
margin-top: 0;
color: #333;
font-size: 1.2em;
}
.calculator-result p {
font-size: 1.1em;
font-weight: bold;
color: #007bff;
}
.calculator-result ul {
margin-top: 10px;
padding-left: 20px;
color: #666;
}
.calculator-result li {
margin-bottom: 8px;
}
function calculateMortgageAffordability() {
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var monthlyDebt = parseFloat(document.getElementById("monthlyDebt").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
if (isNaN(annualIncome) || isNaN(monthlyDebt) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTerm) ||
annualIncome < 0 || monthlyDebt < 0 || downPayment < 0 || interestRate < 0 || loanTerm <= 0) {
document.getElementById("maxMortgageAmount").innerText = "Please enter valid positive numbers.";
return;
}
// General DTI guidelines:
// Front-end DTI (housing expenses): typically max 28% of gross monthly income
// Back-end DTI (all debts): typically max 36-43% of gross monthly income
var grossMonthlyIncome = annualIncome / 12;
// Let's aim for a conservative total DTI of 36% as a starting point for max debt payment.
// Max total monthly debt payment allowed = grossMonthlyIncome * 0.36
var maxTotalMonthlyDebt = grossMonthlyIncome * 0.36;
// The maximum monthly mortgage payment (P&I) we can afford is what's left after existing debts.
var maxMonthlyMortgagePayment = maxTotalMonthlyDebt – monthlyDebt;
// Ensure the max mortgage payment isn't negative
if (maxMonthlyMortgagePayment 0 && numberOfPayments > 0) {
var numerator = Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1;
var denominator = monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments);
if (denominator > 0) {
maxLoanAmount = maxMonthlyMortgagePayment * (numerator / denominator);
}
} else if (monthlyInterestRate === 0 && numberOfPayments > 0) { // Handle 0% interest rate case
maxLoanAmount = maxMonthlyMortgagePayment * numberOfPayments;
}
// The maximum mortgage *affordability* refers to the total price of the home you can afford,
// which is the max loan amount plus your down payment.
var maxHomePriceAffordability = maxLoanAmount + downPayment;
// Format the output
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0,
});
document.getElementById("maxMortgageAmount").innerText = formatter.format(maxHomePriceAffordability);
}