How Much Can You Borrow?

The largest loan your monthly budget supports is the present value of that payment stream: P = PMT × (1 − (1 + r)⁻ⁿ) ÷ r, where PMT is the principal-and-interest portion of your budget (after property tax and insurance), r is the monthly rate, and n is the number of payments. Divide the loan by (1 − down payment %) to estimate the maximum home price, and remember lenders also cap borrowers with debt-to-income and loan-to-value limits — this calculator shows the payment-side ceiling.