Free Home Affordability Calculator

How Much House Can You Afford?

Enter your income, monthly debts, and down payment to find your maximum home price, estimated PITI payment, and DTI ratio — based on the same rules lenders use.

28%
Max housing ratio
28/36 conventional rule
43%
Max DTI most lenders
CFPB guideline

Home Affordability Calculator

Your Financial Profile

Annual Gross Income before taxes
$
Monthly gross: $7,917
Monthly Debt Payments car, student, credit cards
$
Down Payment 20% of home price
%
Interest Rate 30-yr avg: 6.11%
%

Affordability rule

Optional — monthly estimates

Property Tax % / yr
%
Insurance / mo
$

Enter your income and debt details to find your maximum home price

How Much House Can You Afford by Income?

Here are rough estimates using the 28/36 rule, a 20% down payment, and 6.11% rate (30-year fixed, Mar 2026). These assume standard property tax (1.1%) and insurance ($150/mo):

Annual IncomeNo Other Debts$500/mo Debts
$60,000$210,000$160,000
$75,000$265,000$215,000
$100,000$355,000$305,000
$125,000$445,000$395,000
$150,000$535,000$485,000
$200,000$715,000$665,000

Estimates based on 28/36 rule, 20% down, 6.11% 30-yr rate, 1.1% property tax, $150/mo insurance. Source: CFPB DTI guidelines. Your numbers will vary.

The 28/36 Rule Explained

The 28/36 rule is the standard guideline used by most conventional mortgage lenders. It has two components:

28%
Front-End Ratio
Maximum percentage of gross monthly income for housing costs (PITI). Also called the "housing ratio."
$8,000 income × 28% = $2,240 max PITI
36%
Back-End Ratio (DTI)
Maximum percentage of gross monthly income for ALL debt — housing plus car loans, student loans, credit cards, and any other monthly obligations.
$8,000 income × 36% = $2,880 max total debt

DTI Limits by Loan Type

Loan TypeFront-End MaxBack-End Max
Conventional (Fannie/Freddie)28%43–45%
FHA Loan31%43–50%
VA LoanNone41% preferred
USDA Loan29%41%
Jumbo Loan28%38–43%

Source: Fannie Mae Selling Guide / HUD FHA guidelines. Lenders may apply stricter or more flexible standards.

5 Ways to Afford More Home

  • Improve your credit score. Going from 680 to 760 can lower your rate by 0.5–1%, increasing buying power by $20,000–$40,000 on a typical loan.
  • Pay down existing debts. Each $100/month of debt you eliminate adds roughly $15,000–$20,000 in buying power under the 36% DTI rule.
  • Save a larger down payment. 20%+ eliminates PMI ($100–$200/month), which directly increases your max PITI and home price.
  • Consider a longer term. A 30-year mortgage vs. 15-year lowers your monthly payment, increasing the home price you qualify for — though you pay more total interest.
  • Add a co-borrower. A spouse or partner's income can significantly increase combined buying power if their credit is good.
FAQ

Home Affordability — Common Questions

What is the 28/36 rule for home buying?
The 28/36 rule says spend no more than 28% of gross monthly income on housing (PITI), and no more than 36% on total debts. Example: $8,000/month income → max $2,240 housing, max $2,880 total debt. This is the standard rule used by conventional lenders. FHA allows 31/43, and some lenders stretch to 35/45 with strong credit.
How much house can I afford on a $100,000 salary?
At $100K/yr ($8,333/mo gross) with no existing debts, 20% down, and 6.11% rate: the 28/36 rule allows a max PITI of $2,333/mo, which translates to roughly $365,000–$390,000 in home price depending on your property tax rate. With $500/mo in car and student loan payments, that drops to about $300,000–$320,000.
What DTI ratio do I need to qualify for a mortgage?
Most conventional lenders (Fannie Mae, Freddie Mac) allow a back-end DTI up to 43–45% with strong credit. FHA loans allow up to 50% with compensating factors (large down payment, high credit score, cash reserves). A lower DTI below 36% gets you the best rates and easiest approval. VA loans have no strict DTI cap but prefer under 41%.
Should I spend the maximum I qualify for?
Not necessarily. Qualifying for a $500K mortgage doesn't mean buying a $500K home is wise. Lenders measure income and debt — they don't account for retirement savings, emergency fund, childcare, or lifestyle goals. A common rule of thumb is to keep housing costs below 25% of take-home pay (not gross), leaving room for financial goals.
How does my credit score affect how much I can afford?
Your credit score affects your interest rate, which directly affects how much you can borrow. With a 760+ score at 6.11%, you might qualify for $400K. With a 620 score and a rate of 7.5%, the same payment only gets you $340K — a $60,000 difference from rate alone. Before buying, check your credit report at AnnualCreditReport.com and dispute any errors.
What costs should I budget for beyond the mortgage payment?
Plan for: property taxes (0.5–2.5%/yr), homeowner's insurance ($1,200–$2,400/yr), PMI if down payment < 20% ($500–$2,000/yr), HOA fees if applicable ($100–$500+/mo), maintenance (budget 1–2% of home value/yr), and closing costs (2–5% of purchase price). These can add $500–$1,500/month beyond your P&I payment.

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