Home budget scenario
Convert your chosen housing-payment budget into a fixed-rate loan amount.
How this works
Monthly principal-and-interest budget B = gross monthly income × chosen housing percentage/100 − monthly non-loan housing costs. With monthly rate i = annual percentage rate/1200 and n = years × 12, modeled loan principal = B × [1 − (1+i)^(−n)]/i; at zero interest it is B × n. Add the down payment to get the scenario home price.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The default payment budget is $8,000 × 28/100 − $500 = $1,740 per month. A 30-year loan means 360 payments, using a monthly rate of 6/1200 = 0.005. With all reset-default inputs, scenario home price: $350,217.41.
- Monthly gross income ($)
- 8000
- Chosen housing budget (%)
- 28
- Monthly non-loan housing costs ($)
- 500
- Annual loan rate (%)
- 6
- Loan years
- 30
- Down payment ($)
- 60000
- Scenario home price
- $350,217.41
Scope and assumptions
The housing percentage is chosen by you, not prescribed by the calculator. This is not lender approval or an assessment of what you can safely afford. Other debts, closing costs, reserves, variable rates and unentered housing expenses are not modeled.
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