Buyer Purchasing Power Calculator
Start from the monthly payment a buyer is comfortable with and work backward to a maximum price, then see how much buying power shifts as rates move.
Maximum purchase price
$425,168
With 14.1% down at 6.5%
Loan amount
$365,168
Down payment
14.1%
Principal & interest
$2,308
Purchasing power by interest rate
Same $3,000/mo budget, different rates
- 5.5%$458,647+$33.5K
- 6%$441,370+$16.2K
- 6.5%$425,168current
- 7%$409,972−$15.2K
- 7.5%$395,716−$29.5K
A half-point rate drop adds roughly $16,202 of buying power at this budget — worth knowing before a buyer waits on rates or negotiates a buydown.
How it works
The math behind the numbers
- The maximum price is solved so principal, interest, taxes, insurance, HOA, and PMI fit inside the monthly budget.
- The rate comparison holds the budget and down payment constant and re-solves at each rate.
- PMI is included automatically whenever the cash available is less than 20% of the price.
These estimates are for educational purposes and aren't financial, lending, or tax advice. Actual rates, costs, and loan terms vary — confirm the numbers with a licensed lender, title company, or tax professional before making decisions.
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