Payment Calculator
Calculate maximum affordable loan amount and home price based on your desired monthly payment
Calculate with Payment Calculator
Your Budget
Principal & Interest only (not including taxes/insurance)
Loan Terms
What You Can Afford
Down Payment Comparison
| Down % | Home Price | Down Payment | PMI/mo |
|---|---|---|---|
| 5% | $333,075 | $16,654 | $132 |
| 10% | $351,580 | $35,158 | $132 |
| 15% | $372,261 | $55,839 | $132 |
| 20% | $395,527 | $79,105 | - |
* Shows how different down payment percentages affect your purchasing power with the same monthly payment
Interest Rate Impact
* Shows how interest rate changes affect your maximum affordable home price
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,537 | $20,463 | $312,885 |
| 2 | $3,774 | $20,226 | $309,111 |
| 3 | $4,026 | $19,974 | $305,085 |
| 4 | $4,296 | $19,704 | $300,789 |
| 5 | $4,584 | $19,416 | $296,205 |
| 6 | $4,891 | $19,109 | $291,315 |
| 7 | $5,218 | $18,782 | $286,097 |
| 8 | $5,568 | $18,432 | $280,529 |
| 9 | $5,941 | $18,059 | $274,588 |
| 10 | $6,338 | $17,662 | $268,250 |
Showing first 10 years of 30 total
Assumptions
Use Payment Calculator for financial estimate planning when you need a clear estimate, transparent inputs, and a result you can review before taking the next step.
Worked example
When To Use Payment Calculator
- Start with a representative scenario in Payment Calculator so rates, dates, balances, or other key assumptions match the question you are comparing.
- Review whether the estimate matches the planning scenario before you use it for a budget, plan, or discussion.
Sample Input And Output Checks
- Start with inputs that match the real scenario, not only a rounded placeholder.
- Review amount, rate, term, timing, fees, tax treatment, and decision horizon before trusting the output.
- Use the result as an estimate to review against statements, lender terms, tax forms, quotes, or qualified advice when the decision is material.
About This Tool
A payment calculator helps you determine how much you can afford to borrow based on your desired monthly payment. Instead of calculating payments from a loan amount, this reverse calculation shows you the maximum loan and home price you can afford with a specific monthly budget. This is essential for home buyers and anyone planning major purchases.
How Reverse Loan Calculation Works
Traditional mortgage calculators start with a home price and calculate the monthly payment. This payment calculator does the opposite - it starts with what you can afford monthly and works backward to determine your purchasing power. The calculation uses the same loan payment formula but solves for principal (loan amount) instead of payment. This approach is more practical for budgeting because you likely know your monthly budget better than you know home prices in your market. You can also compare results with our Loan Calculator to see monthly payments from different loan amounts.
Understanding Your Budget Constraints
Financial experts recommend that your housing payment should not exceed 28-30% of your gross monthly income. For example, if you earn $6,000 per month, your housing payment should be around $1,680-$1,800. Remember that your monthly housing costs include more than just principal and interest - you'll also need to budget for property taxes, homeowners insurance, HOA fees, and maintenance. A common rule is to add 1-2% of the home's value annually for maintenance and repairs. Our Mortgage Calculator can help you estimate the full costs including taxes and insurance.
The Impact of Down Payment
Your down payment percentage significantly affects your purchasing power. With a 20% down payment, you avoid private mortgage insurance (PMI) and can afford a more expensive home with the same monthly payment. For instance, if you can afford a $2,000 monthly payment at 6.5% for 30 years, you can borrow about $316,000. With 20% down, this means you can afford a $395,000 home. With only 10% down, you could afford a $351,000 home with the same payment - a difference of $44,000 in purchasing power.
Optimizing Your Buying Power
To maximize what you can afford: improve your credit score to qualify for lower interest rates (even 0.5% makes a significant difference), save for a larger down payment, consider a 15-year mortgage if you can afford higher payments (you'll pay much less interest overall), and get pre-approved to understand your actual borrowing capacity. Also shop around - different lenders offer different rates, and comparing at least 3-5 lenders can save you thousands over the life of your loan. For vehicle financing, check out our Auto Loan Calculator to determine affordable car payments.