What this calculator helps you do
Estimate a home price supported by income, existing monthly debts, down payment, rate, taxes, insurance, and selected debt-ratio limits. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—gross monthly income of $7,000, existing monthly debt payments of $650, mortgage interest rate of 6.5%, mortgage term of 30 years, available down payment of $50,000—the calculator returns estimated affordable home price of $279,486.87; estimated loan amount: $229,486.87; maximum housing budget: $1,870.00. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
Treat the result as a ceiling for scenario planning, not as a target. A comfortable personal budget may be lower than a lender’s qualifying amount.
Common mistakes to avoid
- Using gross income when planning from take-home cash flow without adjustment.
- Forgetting maintenance, utilities, association fees, and moving costs.
- Treating common debt-ratio guidelines as universal approval rules.
Limits and assumptions
This is not underwriting. Credit profile, reserves, loan program, local taxes, insurance, and lender policy can materially change eligibility.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Is this the amount a bank will approve?
No. It is a planning estimate based only on the values and ratio limits entered.
What is the front-end ratio?
It compares estimated housing expense with monthly income.
What is the back-end ratio?
It compares housing plus other entered monthly debt with income.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.