House Affordability Calculator
Lenders limit your housing payment to a share of gross income, and your total debt payments to a slightly larger share. This calculator applies both limits and works backward to the home price they allow.
Enter your figures below. Results update as you type.
Home price you can afford$350,045.91
- Principal & interest 79%
- Property tax 15%
- Insurance & HOA 6%
- Loan amount
- $290,045.91
- Monthly housing payment
- $2,333.33
- Housing as a share of income
- 28%
- All debt as a share of income
- 35.2%
- Down payment as a share of the price
- 17.1%
With less than 20% down, most loans add mortgage insurance, which lowers the price you can afford a little further.
How the House Affordability calculation works
Housing budget = lower of (income x front-end %) and (income x back-end % - other debts)
With $100,000 of income, $600 of monthly debts and $60,000 down, the 28% limit allows $2,333 a month for housing. At 6.5% over 30 years, with property tax at 1.2% and $1,800 of insurance, that supports a home of about $350,000.
Frequently asked questions
How much house can I afford on my salary?
A common guide is a housing payment of no more than 28% of gross monthly income and total debts of no more than 36%. On $100,000 a year that is about $2,333 a month for housing, which supports roughly $350,000 at 6.5% with $60,000 down.
What is the 28/36 rule?
A lender guideline: spend at most 28% of gross monthly income on housing costs and at most 36% on housing plus all other debt payments. Many loan programs allow higher ratios for strong applications.
Does my down payment change how much I can afford?
Yes. Every extra dollar down raises the price you can afford by more than a dollar, because it also reduces the loan and the monthly payment.
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