How Much House Can I Afford?

This home affordability calculator estimates how much house you can buy by capping your monthly housing costs and total debt payments using the widely used 28/36 rule. First it finds your gross monthly income. Then it calculates a front-end limit (about 28% for housing) and a back-end limit (about 36% for housing plus other debts). The lower of those two becomes your maximum monthly PITI—principal, interest, taxes, and insurance (plus HOA if you have it).

From that monthly budget, the calculator works backward to a home price using your down payment, interest rate, loan term, property tax rate, and insurance. That is why changing debts or down payment can move your affordable price more than people expect.

Lenders care about more than the sticker price of a home. They look at your income stability, credit profile, down payment, cash reserves, and debt-to-income ratio. Housing payment usually includes the mortgage plus escrowed taxes and insurance. Other monthly obligations—auto loans, student loans, minimum credit card payments—count against your back-end DTI.

Different loan programs (conventional, FHA, VA, USDA) may allow different DTI ceilings, and some underwriters make exceptions for strong credit or cash reserves. Treat this tool as a planning estimate. A lender pre-approval is the final word on what you can borrow.

Suppose you earn $100,000 a year (~$8,333/month), have no other monthly debts, plan a $40,000 down payment, and assume a 6.5% rate on a 30-year loan with about 1.1% property tax and $1,500 yearly insurance. Under a 28% housing cap, your max housing payment is about $2,333/month.

With those assumptions, an affordable home price often lands near $340,000 (loan around $300,000). Add car or student loan payments, raise taxes or insurance, or shrink the down payment, and that number drops. Use the calculator above with your real numbers for a better answer than any one salary rule of thumb.