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Home Price Budget with Debt, Tax & Insurance

Estimate a home price supported by a chosen payment budget after debt, property tax, insurance and purchase closing costs.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A monthly budget of 1,150 less 100 tax and 50 insurance leaves 1,000 for the mortgage. Over twelve zero-interest months that supports a 12,000 loan; 10,000 cash with 10 percent closing costs supports a 20,000 home price.

Mortgage budget = payment budget − other debt − monthly tax − monthly insurance; home price = (loan + cash)/(1 + closing-cost rate)

Worked example

Enter these known values and leave the other values blank.

Combined payment budget
1150 USD / mos
Modeled mortgage term
1:0 yrs / mos
Annual nominal interest rate
0 %
Cash for down payment and closing
10000 USD
Other recurring debt payments
0 USD / mos
Homeowners insurance
600 USD / yrs
Property tax
1200 USD / yrs
Closing costs as a share of home price
10 %
Supported home purchase price
20000 USD
Supported mortgage principal
12000 USD

Assumptions and limitations

  • The model uses a fixed nonnegative nominal rate, equal end-of-period payments and no extra payments, balloon balance, fees or missed payments.
  • At zero interest, principal equals payment times the number of periods. A positive financed balance needs a payment above periodic interest to amortize in finite time.
  • Whole payment counts describe an equal-payment schedule. Fractional terms are continuous mathematical estimates, not exact calendar payoff dates or final partial bills.
  • The calculator retains internal precision. Contractual rounding, daily accrual and irregular dates can change an actual repayment schedule.
  • Tax and insurance default to annual amounts; budget and other debt default to monthly amounts. Select the matching period for each entry. The annual nominal mortgage rate is divided by twelve.
  • The supplied tax and insurance amounts are independent inputs; they do not automatically increase with the calculated home price.
  • Closing costs are a percentage of purchase price and use part of the available cash. The rest of the cash contributes to the purchase.
  • This is a user-supplied budget model, not lender underwriting. It does not calculate income-based debt ratios, mortgage insurance, association charges, reserves or loan eligibility.

Common questions

Is this a mortgage preapproval?

No. It finds a price consistent with the budget and assumptions you enter; it does not assess credit, income or a lender’s requirements.

Should insurance and property tax be annual or monthly?

Use the period selected beside each field. They default to annual amounts and are converted to monthly costs for the mortgage calculation.

References

Bookify handles zero mortgage interest in the principal equation and every retained inverse. Bookify requires a positive mortgage budget after other debt, tax and insurance, with a positive amortizing loan.

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