Maximum Mortgage Approval Calculator

Buying a home is a significant financial decision, and understanding how much mortgage you can afford is crucial. Our Maximum Mortgage Approval Calculator helps you estimate the maximum mortgage approval amount based on your financial inputs.

To calculate the maximum mortgage approval amount, the calculator uses the formula for mortgage payments: Monthly Payment=�⋅�(1+�)�(1+�)�−1Monthly Payment=(1+r)n−1Pr(1+r)n​ where:

  • P is the principal loan amount
  • r is the monthly interest rate
  • n is the number of payments (loan term in months)

How to Use

  1. Enter your annual income.
  2. Input your monthly expenses.
  3. Provide the interest rate.
  4. Specify the loan term in years.
  5. Click on the “Calculate” button to see your maximum mortgage approval amount.

Suppose your annual income is $60,000, monthly expenses are $1,500, the interest rate is 4%, and the loan term is 30 years. Upon calculation, your maximum mortgage approval may be $1,146.42 per month.


  1. What factors influence mortgage approval?
    Mortgage approval depends on various factors, including credit score, income, debt-to-income ratio, and employment history.
  2. Can I include bonuses or additional income in my calculation?
    Yes, you can include bonuses or additional income in your annual income input.
  3. Is the interest rate fixed or adjustable in the calculation?
    The interest rate input represents an annual fixed rate for the entire loan term.
  4. What if my expenses vary monthly?
    Input an average monthly expense for the most accurate calculation.
  5. Can I use this calculator for other types of loans?
    While designed for mortgage calculations, you can adapt it for other loan types by adjusting inputs accordingly.

Knowing your maximum mortgage approval amount helps you set realistic expectations and plan your home purchase wisely. Use our calculator to gain insights into your borrowing capacity and make informed decisions in your home-buying journey.

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