To calculate ‘how much house can I afford,’ a good rule of thumb is using the **28%/36% rule**, which states that you shouldn’t spend more than 28% of your gross monthly income on home-related costs and 36% on total debts, including your mortgage, credit cards and other loans like auto and student loans.

## Also to know is, can I afford a 300k house on a 60k salary?

The usual rule of thumb is that you can afford a **mortgage two to 2.5 times your annual income**. That’s a $120,000 to $150,000 mortgage at $60,000. … Lenders want your principal, interest, taxes and insurance – referred to as PITI – to be 28 percent or less of your gross monthly income.

**$138,431 a year**to afford a 450k mortgage. … In your case, your monthly income should be about $11,536. The monthly payment on a 450k mortgage is $2,769.

## Regarding this, how do I calculate a loan payment in Excel?

## How do I calculate loan amount in Excel?

**How to Calculate How Much You Can Borrow Using Excel**

- Enter the monthly interest rate, in decimal format, in cell A1. …
- Enter the number of payments in cell A2. …
- Enter the maximum amount you could comfortably afford paying each month in cell A3. …
- Enter “=PV(A1,A2,A3)” in cell A4 to calculate the maximum amount of the loan.

## How do you calculate loan amount?

**Here’s how you would calculate loan interest payments.**

- Divide the interest rate you’re being charged by the number of payments you’ll make each year, usually 12 months.
- Multiply that figure by the initial balance of your loan, which should start at the full amount you borrowed.

## How do you calculate maximum loan monthly payment?

**Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:**

- Monthly Income X 28% = monthly PITI.
- Monthly Income X 36% – Other loan payments = monthly PITI.

## How do you find the original amount of a loan?

We can calculate an original loan amount by

- 0.0125.
- The cell containing the interest rate divided by 12.
- 15%/12.

## How is interest calculated on a loan?

You can calculate Interest on your loans and investments by using the following formula for calculating simple interest: **Simple Interest= P x R x T ÷ 100**, where P = Principal, R = Rate of Interest and T = Time Period of the Loan/Deposit in years.

## How much house can I afford 50k salary?

A person who makes $50,000 a year might be able to afford a house worth anywhere **from $180,000 to nearly $300,000**. That’s because salary isn’t the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.

## How much income do I need for a 200k mortgage?

A $200k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an **annual income of $54,729** to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

## What is loan amount based on?

A maximum loan amount describes the total sum that one is authorized to borrow on a line of **credit, credit card, personal loan**, or mortgage. In determining an applicant’s maximum loan amount, lenders consider debt-to-income ratio, credit score, credit history, and financial profile.