How Much House Can I Afford? Calculator by Income

How much house you can afford depends on your income, monthly debts, down payment and interest rate. Lenders commonly keep housing costs at or below 28% of gross monthly income and all debts, including the new mortgage, at or below 36%. Enter your numbers and the calculator finds the highest home price that meets both limits, with property tax, insurance and PMI included. check the monthly payment on a specific price · compare buying with renting · browse every mortgage calculator.

Your numbers

What fits your budget

Maximum home price

$281,175

with $30,000 down

Monthly housing budget

$2,100

Limited by your housing ratio

Loan amount

$251,175

Principal & interest

$1,588

Tax + insurance + HOA + PMI

$512

On $90,000 a year with $450 of monthly debts, the housing ratio allows $2,100 a month and the total-debt ratio allows $2,250. The lower of the two sets the budget.

Price at other down payments

Down payment	Home price	Loan	PMI / month

Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.

How this affordability calculator works

Lenders look at two debt-to-income (DTI) ratios. The front-end ratio compares your total housing payment with your gross monthly income; a common ceiling is 28%. The back-end ratio adds every other monthly debt payment (car loans, student loans, minimum card payments, support) and compares the total with income; a common ceiling is 36%. Your monthly housing budget is whichever limit is lower.

The calculator then searches for the highest home price whose full payment fits that budget. The payment includes principal and interest from the standard amortization formula, property tax as a percentage of the price, homeowners insurance, HOA dues, and private mortgage insurance (PMI) whenever the down payment is under 20% of the price. Because tax and PMI grow with the price, the answer is found by solving the whole payment rather than just principal and interest.

Budget = min(income/12 × 28%, income/12 × 36% − debts)
Payment(price) = P&I(price − down) + price × tax%/12 + insurance/12 + HOA + PMI

Worked example

Take a household earning $90,000 a year with $450 of monthly debts and $30,000 saved for the down payment, at an example 6.5% rate on a 30-year loan with 1.1% property tax and $1,800 of yearly insurance. Monthly income is $7,500. The housing limit is $2,100 and the total-debt limit is $2,250, so the budget is $2,100. The highest price that fits is about $281,175: a $251,175 loan costing $1,588 a month in principal and interest, plus $258 tax, $150 insurance and $105 PMI.

By salary

Worked tables for common incomes, each with rates and debt levels side by side:

What the number does not include

Cash to close. Closing costs and moving costs come out of savings too. If your savings must cover both, lower the down payment field by your expected closing costs.
Reserves. Many lenders want a few months of payments left in the bank after closing.
Your own budget. DTI uses gross income and ignores childcare, retirement saving and commuting. Qualifying for a payment is not the same as being comfortable with it; test a 25% housing ratio to see a more conservative figure.
Loan program rules. FHA, VA and USDA loans have their own mortgage insurance or funding fees and DTI limits.

Ways to raise what you can afford

Paying off a small debt can move the back-end ratio more than a raise would: removing a $300 car payment frees $300 a month of budget when the back-end ratio is the one that binds. A larger down payment, a lower rate from buying discount points, or a home with lower taxes or no HOA all raise the price that fits. Before shopping, compare the payment on a specific house with the mortgage calculator, and check whether buying beats renting over your time frame with the rent vs buy calculator. The 28/36 rule guide explains the ratios in more depth.

Frequently asked questions

What is the 28/36 rule?

It is a common lender guideline: your monthly housing cost (principal, interest, property tax, insurance, HOA and PMI) should be no more than 28% of gross monthly income, and all monthly debt payments including the mortgage no more than 36%. The lower of the two limits sets your budget.

How much house can I afford with my income?

Lenders usually cap your total housing payment (principal, interest, taxes, insurance, HOA and PMI) at about 28% of gross monthly income, and all monthly debts including that payment at about 36%. The calculator solves for the home price whose payment fits both limits, given your down payment and rate.

Does the 28/36 rule decide whether I get approved?

No. It is a common guideline, not a law. Conventional, FHA and VA programs each have their own debt-to-income limits and many lenders approve higher ratios with strong credit or reserves. Use the ratio fields to test a stricter or looser budget.

Why does my down payment change the price so much?

Each dollar of down payment adds a dollar of price without adding to the loan, and reaching 20% down removes private mortgage insurance on a conventional loan, which frees more of the monthly budget for principal and interest.

What rate should I enter?

Enter the rate from a real quote or a lender's published rate for your credit score and loan type. The 6.5% default is only an example so the page shows a result; it is not a current market rate.

Are property taxes and insurance included?

Yes. Property tax is entered as a percentage of the home price per year and insurance as a yearly amount; both are converted to monthly figures and counted inside the housing budget.