Home Affordability Calculator
Find your comfortable home price range based on your income, debt, and goals.
Enter your income and debts to see how much house you can afford.
How to Use This Calculator
- Enter your annual household income — Includes salary, bonuses, freelance income, and any reliable recurring income. Use pre-tax (gross) income — lenders use gross income for DTI calculations.
- Set your down payment — 20% avoids PMI. If you put down 3-10%, your lender will require mortgage insurance, adding $100-$300/month. Our calculator assumes 20%+ eliminates PMI; below 20% subtracts from your available budget.
- Add your monthly debt payments — Car loans, student loans, minimum credit card payments, personal loans. Not included: utilities, groceries, phone bills, or subscriptions (lenders don't count these).
- Adjust local costs — Property tax rates vary by county (1-3% is typical). HOA fees can range from $0 to $500+/month. Home insurance varies by location and home value.
- Review your DTI — The 28/36 rule: your housing costs shouldn't exceed 28% of your income, and total debt shouldn't exceed 36%. If your DTI is too high, try increasing your down payment or paying down existing debts.
How Much House Can You Afford by Salary?
Here's a quick reference table showing how much home you can afford at different income levels, assuming 20% down, 6.5% rate, and no other debts:
| Annual Income | Affordable Home Price | Monthly Payment | Max Mortgage |
|---|---|---|---|
| $50,000 | $180,000 | $1,170 | $144,000 |
| $75,000 | $270,000 | $1,750 | $216,000 |
| $100,000 | $360,000 | $2,330 | $288,000 |
| $150,000 | $540,000 | $3,500 | $432,000 |
| $200,000 | $720,000 | $4,670 | $576,000 |
| $300,000 | $1,080,000 | $7,000 | $864,000 |
The 28/36 Rule Explained
28% Front-End Ratio
Your total monthly housing costs (mortgage principal + interest, property taxes, insurance, HOA) should not exceed 28% of your gross monthly income. This is the strictest limit most lenders use for conventional loans.
36% Back-End Ratio
Your total monthly debt payments (housing + car loans + student loans + minimum credit card payments + personal loans) should not exceed 36% of your gross monthly income. Some lenders allow up to 43% for FHA loans.
5 Factors That Affect Your Buying Power
- Mortgage rates — Every 1% rate increase reduces your buying power by ~10%. At 6.5%, a $350k home costs $2,213/month. At 7.5%, the same home costs $2,447/month — essentially making it $30k less affordable.
- Existing debt — $500/month in student loan payments consumes 8.3% of your DTI on a $72k income. Paying off that $500/month frees up enough budget for roughly $60,000 more home.
- Down payment size — Going from 10% to 20% down on a $400k home drops the loan from $360k to $320k, saving ~$270/month at 6.5% plus eliminating PMI ($150-300/month). That's $400-570/month freed up — enough to qualify for a more expensive home.
- Property taxes — Property tax rates vary from 0.3% (Colorado, Hawaii) to 2.5% (New Jersey, Illinois). On a $400k home, that's a difference of $120/month vs $830/month — $710/month affects affordability dramatically.
- HOA fees — In many suburban communities, HOA fees of $200-500/month are common and NOT optional. These count toward your housing DTI just like mortgage payments do.
Frequently Asked Questions
How much house can I afford based on my salary?
A common rule of thumb is 3-5 times your annual income. With a $100,000 salary and 20% down, you can typically afford a $350,000-$500,000 home, depending on your existing debts, mortgage rate, and local property taxes. Use the calculator above with your actual numbers for a precise answer.
What is the 28/36 rule for home affordability?
The 28/36 rule states: your mortgage payment should not exceed 28% of gross monthly income, and total debt payments (including mortgage) should not exceed 36%. For a $100k income: $2,333/month max for housing, $3,000/month total debt max. This is the standard for conventional loans.
How does my down payment affect what I can afford?
A larger down payment means a smaller loan, lower monthly payments, and no PMI (if ≥20%). Going from 10% to 20% down on a $400k home saves roughly $270/month in mortgage payment plus $150-300/month in PMI. That extra budget capacity allows you to qualify for a more expensive home.
Can I afford a house with student loans?
Yes — lenders include student loan payments in your DTI. A $400/month student loan on a $72k income consumes 6.7% of your 36% DTI allowance. If your total DTI stays under 36%, you can still qualify. Consider income-driven repayment plans to lower your monthly payment (and DTI) before applying.
What is a good debt-to-income ratio for a mortgage?
Lenders prefer under 36% for conventional loans. FHA allows up to 43%. VA has no strict limit but most lenders cap at 41%. The lower your DTI, the better rate you qualify for. A DTI under 28% is considered excellent.
How do current mortgage rates affect affordability?
Every 1% rate increase reduces buying power by ~10%. At 6.5%, a $350k home costs $2,213/month. At 7.5%, same home = $2,447/month. You'd need to drop to a $318k home to keep the same payment. Use our Mortgage Calculator to see rate scenarios.
Should I base my budget on my pre-approval amount?
Pre-approval shows the maximum a lender will give you, not what you should spend. Many buyers regret maxing out. Aim for 75-80% of your pre-approval. For example, if pre-approved for $500k, look at homes in the $375k-$400k range. This leaves room for rate increases, moving costs, furniture, and lifestyle changes. Check our Rent vs Buy Calculator to compare your options.
Sources: Consumer Financial Protection Bureau (CFPB), Freddie Mac, Fannie Mae, Federal Reserve 2026 data. Lending guidelines vary by loan type and lender. Consult a mortgage professional for a personalized pre-approval.