House Affordability Calculator

Estimate the home price you can afford from your income, debts, down payment and mortgage rate using lender debt-to-income rules.

  • Reviewed October 2026
  • Formula and worked example below
  • Free, no sign-up, runs in your browser
$
$
Car, student loan and minimum card payments.
$
%
%/yr
$
Enter your numbers to see the result.

How lenders decide what you can afford

Lenders look at your debt-to-income (DTI) ratio: monthly debt payments divided by gross monthly income. They apply two limits:

  • Front-end ratio: housing costs (mortgage, property tax, insurance, HOA) as a share of income. The classic limit is 28%.
  • Back-end ratio: housing plus all other debts. The classic limit is 36%; many conventional loans allow up to 43–50% with strong credit.

This calculator finds the highest home price that keeps you within both limits, after accounting for property tax and insurance, which rise with the price.

Example

With $100,000 income, $400 of other debts and $40,000 down, the 28% limit allows $2,333 a month for housing. At 6.5% with 1.1% property tax and $1,500 insurance, that supports a home of about $340,000 with a $300,000 mortgage.

Affordable vs approved

A lender may approve you for more than is comfortable. Approval is based on gross income and ignores childcare, retirement saving, commuting and maintenance. Budget 1–2% of the home's value each year for repairs. Many planners suggest staying near the conservative 28/36 limits even if a lender offers more.

Ways to afford more

  • Pay down other debts before applying; every $100 less in monthly debt adds borrowing room.
  • Improve your credit score for a lower rate. Each 0.5% lower rate adds roughly 5% to your buying power.
  • Save a larger down payment to reduce the loan and avoid PMI.
  • Look at areas with lower property tax rates, which vary from under 0.5% to over 2% by state.

Frequently asked questions

How much house can I afford on a $100,000 salary?

Using the conservative 28/36 rule with modest debts, typically around $300,000–$400,000 depending on your down payment, mortgage rate and property taxes.

What is the 28/36 rule?

Spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined.

Does the calculator include PMI?

No. If your down payment is under 20%, budget an extra 0.3–1.5% of the loan per year for private mortgage insurance.

Add this calculator to your website

Free to use on blogs, school sites and company intranets. Copy this code into your page:

Last reviewed Oct 20, 2026. Results are estimates; check important decisions with a qualified professional.