Home Affordability Calculator

How much house can you afford? Based on your income, debts, down payment, and location, this calculator uses the 28/36 rule to determine your maximum home price.

Your Financial Profile
Enter your income and existing debts to calculate your budget.

Car loans, student loans, credit card minimums, etc.

Loan Assumptions
Taxes & Insurance
Estimated based on your selected state.
Maximum Affordable Home Price
$280,000

Estimated monthly payment: $2,096

Monthly Income$7,500
Monthly Debts$500
Debt-to-Income (DTI)
28% Front-End (Housing only)
$2,100/mo
36% Back-End (Housing + Debts)
$2,520/mo
Your max allowed monthly payment
$2,100/mo
Purchase Summary
Down Payment (10%)
$28,000
Loan Amount
$252,000
Income Needed (28% rule)
$90,000/yr
How Affordability Is Calculated
Based on the standard 28/36 underwriting rule.

28% Rule: Your total monthly housing payment (PITI — Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross monthly income.

36% Rule: Your total monthly debt payments (housing + car loans, student loans, credit cards) should not exceed 36% of your gross monthly income.

The calculator uses the stricter of the two limits to determine your maximum affordable home price, then finds the highest price your monthly budget can support at current interest rates.

* This is an educational estimate. Actual loan approval depends on credit score, exact rates, and lender-specific underwriting criteria. Consult a mortgage professional.

How to Use This Calculator

Enter your annual income, monthly debts, and down payment. The calculator uses the 28/36 lending rule to find your maximum affordable home price. Results update instantly as you adjust any input.

  1. 1
    Enter Your Annual Income — Your gross (pre-tax) household income from all sources. Lenders use this to calculate the 28% front-end ratio.
  2. 2
    Add Monthly Debt Payments — Include car loans, student loans, credit card minimums, and other recurring debts. This feeds into the 36% back-end ratio.
  3. 3
    Set Your Down Payment — The percentage you plan to put down. A higher down payment increases your affordable price range and can eliminate PMI.
  4. 4
    Choose Interest Rate & Term — Use current market rates (default 6.5%) and your preferred loan term. A lower rate increases your purchasing power.
  5. 5
    Select Your State — State-specific property tax rates and insurance costs affect affordability. The calculator uses this to refine the result.

📊 Example: $100,000 Salary with 20% Down

Imagine you earn $100,000/year ($8,333/month), have $0 in monthly debts, and plan a 20% down payment. With a 6.5% 30-year fixed rate in a national-average tax state, here's what the 28/36 rule says you can afford:

Annual Income$100,000
Monthly Income$8,333
Max Housing Payment (28%)$2,333/mo
Max Total Debt Payment (36%)$3,000/mo
Maximum Affordable Home Price$362,000
Down Payment (20%)$72,400
Monthly PITI$2,330/mo

With $500/month in car loan and student loan payments, your max affordable price drops to roughly $330,000 — a $60,000 reduction. This shows why paying down debt before house hunting significantly expands your options.

Understanding Your Results

The affordability calculation is based on two key lending ratios that lenders use to determine how much mortgage you qualify for.

Front-End Ratio (28%)Your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income. On a $100K salary ($8,333/mo), that caps your housing payment at $2,333/mo. This is the primary constraint for most borrowers.
Back-End Ratio (36%)Your total debt payments — housing plus car loans, student loans, credit cards, child support, etc. — should not exceed 36% of your gross income. For a $100K salary, that's $3,000/mo total.
Down Payment ImpactYour down payment directly affects the loan amount and whether PMI is required. A 20% down payment eliminates PMI and reduces your monthly PITI, allowing you to afford a higher-priced home within the 28% constraint.
State-Specific CostsProperty tax rates vary dramatically by state. A homebuyer in New Jersey (2.4% avg tax rate) may afford $50K–$80K less home than one in Colorado (0.5% avg), even with the same income, because higher taxes consume more of the 28% allowance.

Common Mistakes to Avoid

First-time buyers frequently overestimate or underestimate what they can afford. Avoid these pitfalls:

❌ Using gross income instead of after-tax income for budgeting.

✅ The 28/36 rule is based on gross income, but your actual budget should consider take-home pay. A $100K salary might net ~$6,000/mo after taxes and deductions — spending $2,333/mo on housing (39% of net) may feel tight. Use a personal budget in addition to this calculator.

❌ Ignoring how existing debt reduces buying power.

✅ A $500/month car payment reduces your affordable home price by $60K–$80K. Before shopping for a home, consider paying down high-interest debt — it improves both your DTI ratio and your monthly cash flow.

❌ Maxing out the affordability number without a cash flow buffer.

✅ Just because you qualify for a $362K home doesn't mean you should buy at that limit. Unexpected repairs, HOA special assessments, and rate changes can strain your budget. Aim for 25–28% of gross income for housing, not the maximum.

Related Tools & Guides

Explore more tools to understand your full financial picture:

Mortgage Calculator →Closing Cost Calculator →How Much House Can I Afford? →Income Needed Guide →

Frequently Asked Questions

What is the 28/36 rule?
The 28/36 rule is a lending guideline stating that your total monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments (including housing, car loans, student loans, credit cards) should not exceed 36%.
How much house can I afford with a $100,000 salary?
With a $100,000 annual income ($8,333/month), following the 28% rule you can afford a monthly housing payment of about $2,333. Depending on your down payment and current interest rates, this typically translates to a home price between $350,000 and $450,000.
Does this calculator automatically detect my state?
Yes! We try to detect your location using your IP address to pre-fill state-specific property tax rates and insurance costs. You can manually override the state selection at any time.
Should I include future income in my affordability calculation?
No. Lenders base their decision on documented, current income. Future salary increases, bonuses, or job changes cannot be used to qualify for a mortgage. Use your current guaranteed income for accurate results.