Home Affordability Calculator
How much house can you actually afford? Enter your income, debts and down payment and we'll show the home price that fits the 28/36 lending rule — plus the monthly payment behind it. Adjust the numbers to see what moves the needle.
Your numbers
New to this? Leave the defaults — they're realistic — and just change your income and down payment.
Where your monthly payment goes
Your maximum monthly housing payment, split into its parts.
What you could afford at different rates
Same income, debts and down payment — only the interest rate changes. Your current rate is highlighted.
| Rate | Home price | Principal & interest | Total payment |
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How home affordability works
Lenders don't decide what you can afford by looking at the home price — they look at your income and debts. The most common yardstick is the 28/36 rule, a debt-to-income (DTI) test with two parts:
- Front-end ratio (28%): your total monthly housing payment should stay under about 28% of your gross monthly income.
- Back-end ratio (36%): all your monthly debt payments combined — the new housing payment plus car loans, student loans and credit-card minimums — should stay under about 36%.
Whichever limit is lower sets your ceiling. With no other debt, the 28% housing cap usually binds; if you carry a lot of debt, the 36% total cap takes over. Some loan programs stretch the back-end ratio to 43% or even 50%, which is what the "Moderate" and "Aggressive" options above do.
The payment those ratios cap isn't just loan repayment — it's the full PITI: Principal, Interest, Taxes and Insurance, plus HOA dues and PMI (private mortgage insurance, which applies when you put less than 20% down). So a higher property-tax area, pricier insurance, or PMI all leave less room for principal and interest — and lower the price you can afford.
How we calculate it
We work backward from your income to a home price. In plain English: find your monthly payment budget from the DTI rule, peel off taxes, insurance and PMI, and convert what's left into the biggest loan it can support — then add your down payment.
Because property tax scales with the home price and PMI scales with the loan — the very numbers we're solving for — we solve it by iterating until it settles, which takes a fraction of a second.
Worked example (the defaults above):
- $100,000 income ÷ 12 = $8,333 gross per month.
- 28% housing cap = $2,333; 36% total cap = $3,000 − $500 debts = $2,500 → the lower one, $2,333, is your budget.
- Subtract ~$310 property tax, $150 insurance and ~$116 PMI → about $1,758 left for principal & interest.
- At 6.5% over 30 years, $1,758/mo supports roughly a $278,000 loan.
- Add the $60,000 down payment → about $338,000 in home price.
What affects how much house you can afford
- Your down payment. Every dollar down is a dollar you don't finance, so it adds straight to the price. Crossing 20% also drops PMI, freeing up payment for principal and interest.
- Existing debts. Car and student loans and credit-card minimums eat into the 36% back-end ratio, directly lowering what you can borrow. Paying them down before you shop can meaningfully raise your budget.
- Interest rate. A higher rate means more of each payment goes to interest, so the same budget supports a smaller loan — see the rate table above for how much.
- Taxes, insurance & HOA. These are part of the capped payment, so high-tax areas or steep HOA dues shrink the price you can reach.
- Loan term. A 15-year loan has a higher payment than a 30-year, so it lowers the price you qualify for — but saves enormously on interest.
- Credit score. It drives your rate and PMI cost, both of which feed back into affordability.
Glossary
- DTI (Debt-to-Income ratio)
- The share of your gross monthly income that goes to debt payments. Lenders use it to size your loan.
- Front-end ratio
- Housing payment ÷ gross monthly income. The 28% in the 28/36 rule.
- Back-end ratio
- All debt payments ÷ gross monthly income. The 36% in the 28/36 rule.
- PITI
- Principal, Interest, Taxes and Insurance — the four parts of a typical mortgage payment (HOA and PMI are often added too).
- PMI (Private Mortgage Insurance)
- An extra monthly charge required when your down payment is under 20%. It protects the lender, not you, and can be dropped once you reach 20% equity.
- Pre-approval
- A lender's conditional commitment to lend you a specific amount, based on verified income and credit. It's the real number to shop with.
- Gross vs. net income
- Gross is before taxes and deductions; net is take-home. Lenders use gross; some rules of thumb (like Dave Ramsey's) use net.
Frequently asked questions
How much house can I afford on a $100,000 salary?
As a rough guide, a $100,000 salary supports a home in the low-to-mid $300,000s — but it hinges on your down payment, debts and rate. Using the 28/36 rule, $100k a year is about $8,333 gross monthly, capping your housing payment near $2,333. After taxes, insurance and PMI, that supports roughly a $278,000 loan; add a $60,000 down payment and you're around a $338,000 home. Enter your real numbers above to personalize it.
What is the 28/36 rule?
A standard lending guideline: keep your monthly housing payment (PITI + HOA + PMI) under about 28% of gross monthly income, and all your monthly debts combined under about 36%. The lower of the two caps is what limits how much house you can afford.
How much income do I need to afford a $400,000 house?
Generally a six-figure household income plus a solid down payment. With ~10–20% down at a 6–7% rate, a $400,000 home's monthly payment (with taxes and insurance) lands in the high-$2,000s to low-$3,000s. Under the 28% rule that points to roughly a $110,000–$130,000 income — less if you have little other debt and a larger down payment.
How much house can I afford on a $60,000 salary?
Often the $180,000–$250,000 range, depending on your down payment and debts. $60k is $5,000 gross monthly, capping housing near $1,400 under the 28% rule. With modest debts and a 10–20% down payment, that supports a home in the low-to-mid $200,000s.
Does my down payment affect how much house I can afford?
Yes — twice over. It's money you don't have to borrow, so it adds directly to the price you can reach. And once you hit 20% down, you avoid PMI, which frees up part of your capped monthly payment for principal and interest, letting you afford a bit more.
How much of my income should go to a mortgage?
Lenders allow up to ~28% of gross income for housing, but many advisors urge caution. Dave Ramsey recommends keeping your payment under 25% of take-home pay on a 15-year loan. Remember: the lender's limit is the most you can borrow, not what you should spend — leave room for maintenance, savings and life.
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