Salary Needed for a House Calculator (28/36 Rule)

The house you want

Income this house needs

Gross salary needed

$126,090

a year, before tax

Per month

$10,508

Hourly equivalent

$60.62

at 40 hours × 52 weeks

Monthly housing payment

$2,942

Cash down payment

$40,000

The payment of $2,942 needs $126,090 a year at the 28% housing limit; with $500 of other debts, the 36% limit needs $114,737. The higher figure is the salary needed.

Payment breakdown

Part	Per month
Principal & interest	$2,275
Property tax	$367
Insurance	$150
HOA	$0
PMI	$150

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 the salary needed is calculated

This is the affordability calculator run backwards. Instead of starting from income and finding a price, it starts from the price, works out the full monthly payment on it, and asks what income keeps that payment inside both debt-to-income limits. The housing ratio (28% by default) caps the payment itself. The total-debt ratio (36% by default) caps the payment plus every other monthly debt. Whichever limit needs more income decides the answer.

Salary needed = 12 × max(payment ÷ 28%, (payment + other debts) ÷ 36%)
Payment = P&I(price − down) + price × tax%/12 + insurance/12 + HOA + PMI

Worked example: a $400,000 house

With 10% down ($40,000) the loan is $360,000. At an example 6.5% over 30 years the principal and interest come to $2,275 a month. Property tax at 1.1% adds $367, insurance $150 and PMI at 0.5% of the loan $150, so the full payment is $2,942. At 28% that needs $126,090 a year. With $500 of other monthly debts the 36% limit needs $114,737, so the salary needed is $126,090, about $60.62 an hour full time. Without the other debts it would be $126,090.

Salary needed by home price

Same example assumptions (10% down, 6.5%, 30 years, 1.1% tax, $1,800 insurance, 0.5% PMI):

Home price	Monthly payment	Salary, no other debts	Salary, $500/mo debts
$300,000	$2,244	$96,175	$96,175
$400,000	$2,942	$126,090	$126,090
$500,000	$3,640	$156,006	$156,006
$600,000	$4,338	$185,921	$185,921
$750,000	$5,385	$230,795	$230,795

Each price links to a page with the same question worked through at several rates and down payments.

Already know your salary?

Go the other way with the salary pages, which show the price range for a given income:

What the answer leaves out

Closing costs and reserves. The down payment is only part of the cash you need at closing.
Loan program rules. FHA, VA and USDA loans have their own insurance or funding fees and their own debt-to-income limits.
Your real budget. Ratios use gross pay and ignore childcare, retirement saving and repairs. Qualifying for a payment is not the same as being comfortable with it. The 28/36 rule guide explains the ratios in more detail.

Frequently asked questions

What salary do I need to buy a house?

Divide the full monthly housing payment (principal, interest, property tax, insurance, HOA and PMI) by 28%, and the payment plus your other monthly debts by 36%. Multiply the larger result by 12. That is the gross yearly income the 28/36 guideline needs for that price.

What salary do I need for a $400,000 house?

With 10% down at an example 6.5% rate over 30 years, 1.1% property tax, $1,800 insurance and 0.5% PMI, the payment is about $2,942 a month, which needs about $126,090 a year with no other debts. With $500 of other monthly debts it is about $126,090.

Is this gross or take-home pay?

Gross, before taxes and payroll deductions, because that is what lenders use for debt-to-income ratios. If two people are on the loan, it is your combined gross income.

Why do my other debts raise the salary needed?

The 36% limit covers housing plus every other monthly debt payment. Once those debts are more than 8% of income, the 36% limit becomes the tighter one and each extra dollar of debt payment needs about $2.78 more of monthly income (1 ÷ 0.36).

Can I buy with a lower income than this?

Possibly. 28/36 is a guideline, not a law. Loan programs publish their own limits and automated underwriting can approve higher ratios with strong credit or reserves. A larger down payment, a lower rate or a home with lower taxes also lowers the income needed. Test a higher ratio in the calculator to see the effect.

What Salary Do I Need to Buy a House?