Mortgage Buying Power Calculator

Introduction: Understanding your mortgage buying power is essential when considering a home purchase. Our Mortgage Buying Power Calculator is a valuable tool designed to help you estimate the maximum loan amount you can afford, taking into account factors such as annual income, expenses, down payment, interest rate, and loan term.

Formula: The calculator uses the debt-to-income ratio to estimate the affordable monthly payment, then calculates the corresponding loan amount. The total buying power is determined by dividing the loan amount by the down payment percentage.

How to Use:

  1. Enter your annual income.
  2. Input your annual expenses.
  3. Specify the down payment percentage you plan to make.
  4. Provide the annual interest rate offered.
  5. Specify the loan term in years.
  6. Click the “Calculate” button to get an estimate of your mortgage buying power.

Example: Suppose you have an annual income of $70,000, annual expenses of $40,000, a down payment of 15%, an annual interest rate of 3.75%, and a loan term of 25 years. After clicking “Calculate,” the result will display your estimated mortgage buying power.


  1. Q: What is mortgage buying power?
    • A: Mortgage buying power is the maximum loan amount you can afford based on your financial situation.
  2. Q: How accurate is the buying power estimate?
    • A: The calculator provides a rough estimate. Consult with a mortgage professional for a more accurate assessment.
  3. Q: Does the calculator consider other debts besides expenses?
    • A: No, it focuses on the debt-to-income ratio with expenses only.
  4. Q: Can I include bonuses or irregular income in my annual income?
    • A: It’s advisable to use a stable, regular income for a more conservative estimate.
  5. Q: Is a higher down payment always better for buying power?
    • A: A higher down payment can increase your buying power, but it’s important to consider your overall financial situation.

Conclusion: Our Mortgage Buying Power Calculator is a valuable tool to help you assess your potential loan amount and make informed decisions about your home purchase. Use it as a starting point for your homebuying journey and consult with a mortgage professional for personalized advice.

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