How Much House Can I Afford?
Your likely price range from income, debts, down payment and rate, using the same debt-to-income limits lenders use.
You can afford a home up to about
$363,000
- Max housing payment
- $2,567/mo
- Loan amount
- $313,017
- Principal & interest
- $1,978
- Down payment
- 13.8%
Limited by your front-end (housing) ratio.
Explain my numbers
Get a plain-English reading of the result above: what drives it, what the trade-offs are and what to ask a lender or adviser. It is educational, not financial advice. Only these inputs and results are sent, and nothing is stored.
The 28/36 rule, as two ceilings
Lenders check two limits and use whichever is lower. Move income and existing debts to see which ceiling you hit first. Car and student loans only squeeze the second one, which is why paying one off can raise your budget.
28% housing: $2,240 · 36% minus debts: $2,280
Your ceiling is $2,240 a month for housing, set by the 28% rule.
How this affordability estimate works
First the calculator finds your maximum monthly housing cost: the lower of your front-end limit (28% of gross monthly income) and your back-end limit (36% minus existing debt payments). Then it searches for the highest price whose full payment, including principal, interest, property tax, insurance, HOA and PMI when you put down under 20%, fits under that ceiling.
Affordable versus comfortable
Lender limits describe what you can qualify for, not what leaves room for childcare, retirement saving or repairs. Budgeting 1–2% of the home’s value a year for maintenance is a common planning rule. Try lowering the ratios to 25/33 for a more comfortable number, then check the payment in the mortgage calculator.
Frequently asked questions
How much house can I afford on my salary?
A common lender guideline is the 28/36 rule: total housing costs up to 28% of gross monthly income and all debt payments up to 36%. On a $110,000 salary with $450 of other debts, 20% down of $50,000 and a 6.5% rate, that points to roughly a $360,000 home. Your rate, taxes and debts move this a lot, so enter your own numbers.
What is the 28/36 rule?
It is a traditional underwriting guideline: your mortgage payment including taxes and insurance should not exceed 28% of gross monthly income (front-end ratio), and all monthly debt payments including the mortgage should not exceed 36% (back-end ratio). Many loan programs allow higher back-end ratios, such as up to about 43–50% with compensating factors.
How much down payment do I need?
Conventional loans can go as low as 3% down, FHA 3.5% and VA or USDA loans 0% for eligible borrowers. Putting less than 20% down on a conventional loan usually means paying PMI, which this calculator includes at 0.5% a year.
Does the calculator use gross or net income?
Gross (before-tax) income, because that is what lenders use for debt-to-income ratios. If you want a more conservative budget, lower the front-end and back-end percentages.
What counts as monthly debts?
Minimum payments on credit cards, car loans, student loans, personal loans, child support and alimony. Everyday bills such as utilities, phone and groceries are not counted by lenders, but they still matter for your own budget.