Home Affordability Calculator: How Much House Can I Afford?
Enter your income, debts, down payment and rate to see the highest home price that keeps your housing costs and total debt within lender-style limits.
A common lender guideline keeps housing costs at or below 28% of gross monthly income and all debt payments at or below 36%. On a $100,000 salary with $500 a month in other debts, $40,000 down and a 6.5% 30-year loan, that allows about $2,333 a month for housing, which covers a home of about $336,609 once property tax and insurance are counted.
This calculator gives an estimate for general education only. It is not financial advice, a loan offer or a preapproval. It uses the debt-to-income limits you enter, does not include mortgage insurance, closing costs or maintenance, and assumes a fixed rate. Lenders set their own limits and look at your credit, savings and the property. Talk to a lender or a qualified financial professional before you commit to a purchase.
Estimated home price you can afford
$336,609
- Loan amount
- $296,609
- Monthly housing budget
- $2,333.33
- Budget set by
- Housing cost limit
- Principal and interest
- $1,874.77
- Property tax
- $308.56
- Insurance
- $150.00
- HOA dues
- $0.00
- Total monthly housing cost
- $2,333.33
- Housing cost as % of income
- 28.00%
- All debts as % of income
- 34.00%
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About the Home Affordability Calculator
Lenders size a mortgage from your gross income, not your take-home pay, using two debt-to-income ratios. The first caps housing costs, meaning principal, interest, property tax, homeowners insurance and any HOA dues, at a share of gross monthly income, traditionally 28%. The second caps housing plus every other monthly debt payment, such as a car loan, student loans and card minimums, traditionally at 36%. Whichever limit is tighter sets your housing budget. That is why paying off a $400 car payment can raise the price you qualify for more than a raise would: it frees room under the second limit directly. The calculator takes that budget, subtracts insurance and HOA dues, and then finds the price at which the mortgage payment plus the property tax on that price use up exactly what is left, with your down payment covering the rest. Property tax grows with the price, so it is counted as a percent of the home value rather than a flat amount. Some loan programs allow higher ratios, often 31% and 43%, and you can enter those instead. The result is a ceiling, not a target: many buyers choose a lower price so there is room for savings, repairs and rising insurance.
Frequently asked questions
How much house can I afford on a $100,000 salary?+
With $500 a month in other debts, $40,000 down, a 6.5% 30-year rate, 1.1% property tax and $1,800 a year for insurance, about $336,609. The 28% housing limit allows about $2,333 a month, and the 36% total-debt limit allows more, so the housing limit is the one that binds.
What is the 28/36 rule?+
It is a lender rule of thumb: housing costs should take no more than 28% of gross monthly income, and all monthly debt payments together no more than 36%. Many lenders go higher for borrowers with strong credit or large savings, so treat 28 and 36 as a conservative starting point, not a legal limit.
Does my car payment change how much house I can afford?+
Yes, through the total-debt limit. Every dollar of monthly debt comes straight out of the room that limit leaves for housing. If your debts are high enough that the 36% limit binds, the page says so, and each $100 a month of debt you pay off raises your housing budget by $100.
Why does a bigger down payment raise the price by more than the down payment itself?+
It does not always. The down payment adds to the price one for one, but the monthly budget still has to cover property tax on the whole price, so the gain is slightly less than the extra cash. What a larger down payment does change is the loan amount, and with it the interest you pay over the years.
Is this what a lender will approve?+
No. Lenders also weigh your credit score, savings, job history, the property and the loan program, and they may count mortgage insurance, which this estimate leaves out. Use the figure to set a search range, then get a preapproval for the real number.
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