How Much House Can I Afford?Home Affordability Calculator

Affordability comes down to one key idea: how much of your income can you safely commit to housing each month, after your other debts and expenses? Lenders use the debt-to-income (DTI) ratio to answer that question.

The 28/36 rule is the most common benchmark: housing costs should stay under 28% of gross monthly income, and total debt payments under 36%. This calculator uses that ratio (adjustable) and works backward through the standard mortgage formula to estimate the maximum loan and home price you qualify for.

• Income — Higher gross income directly increases your housing budget.
• Interest rates — Even a 0.5% change can move your max home price by tens of thousands.
• Existing debt — Car loans, credit cards, and student loans reduce the budget available for housing.
• Down payment — More upfront = more home, lower payment, and possibly no PMI.
• Loan term — Longer terms (30 yr) reduce monthly payments and boost max price, but cost more interest overall.
• Property taxes & insurance — Vary widely by location and eat into your housing budget.
• HOA fees — Monthly community or condo dues count against your housing budget just like the mortgage.
• Credit score — A higher score unlocks lower interest rates, which directly raises the loan size you can afford.

Just because a lender approves a number doesn't mean you should spend it. Buying at the very top of your budget leaves no cushion for repairs, vacations, child care, retirement savings, or rate hikes if your loan is variable. Most planners recommend keeping housing costs closer to 25% of take-home pay for long-term comfort.

Try lowering the DTI slider above to see what a more conservative budget would look like. The freedom to invest the difference often beats the bigger house — model the growth in our savings goal calculator or check the exact monthly payment in the mortgage calculator.

This affordability calculator estimates the maximum home price you can comfortably afford by combining three things: your gross monthly income, your existing monthly debts, and standard lender guidelines (the 28/36 DTI rule). It then reverses the mortgage payment formula to figure out the largest loan that fits inside your monthly housing budget — including property tax, homeowners insurance, and HOA dues.

Add your down payment to that maximum loan amount and you get your maximum home price. Adjust the DTI slider, interest rate, or down payment to see how each lever changes what you can afford in real time.

If the calculator shows a home price below what you want, there are five proven ways to increase how much house you can afford:

• Save a bigger down payment. Every extra dollar down adds directly to your max home price and may remove PMI.
• Pay down existing debt. Eliminating a $400/month car payment can boost your housing budget by tens of thousands.
• Improve your credit score. A higher score unlocks lower interest rates, which directly increases what you can borrow.
• Lock in a lower interest rate. Shop multiple lenders or buy down points — even 0.5% lower can mean 5–7% more home.
• Choose a longer loan term. A 30-year loan has a lower monthly payment than a 15-year, raising your affordable price (at the cost of more total interest).

A quick rule-of-thumb: most buyers can afford a home priced around 3–4× their gross annual income, assuming moderate debt and a typical down payment. Here are realistic ballparks at common income levels:

• $50,000/yr salary → roughly $150,000–$200,000 home price.
• $75,000/yr salary → roughly $225,000–$300,000 home price.
• $100,000/yr salary → roughly $300,000–$400,000 home price.
• $150,000/yr salary → roughly $450,000–$600,000 home price.

These are approximations — your real number depends on rates, debt, location, taxes, and down payment. Use the calculator above with your actual numbers for a precise estimate.

1. Enter your annual gross income — before taxes.
2. Add your other monthly debts — car loan, student loan, credit cards, child support.
3. Enter your planned down payment — in dollars.
4. Set the interest rate from a recent mortgage quote.
5. Choose a loan term — typically 30 years for max affordability or 15 for less interest.
6. Adjust the DTI ratio — 28% is the lender standard, 25% is more comfortable.
7. Optional: tweak property tax %, insurance, and HOA for your area.
8. Review the result — your max home price plus the comfort vs lender max comparison.

• First-time home buyers — set a realistic budget before house hunting.
• Comparing two cities — adjust property tax % and insurance to compare local affordability.
• Planning a down payment — see how saving an extra $20K–$50K changes your max price.
• Paying off debt first — see how eliminating a $400/month car payment boosts your housing budget.
• Single-income vs dual-income — compare what each scenario can afford.
• Refinance or upsize check — verify if today's rates still fit your income.

• Pay off high-interest debt first. Eliminating monthly debt directly raises your housing budget.
• Save a larger down payment. Every extra dollar down adds 1:1 to your max price.
• Improve your credit score. A score above 740 typically unlocks the best rates.
• Shop multiple lenders. Rate differences of 0.25–0.5% can shift your max price by 5–10%.
• Consider a longer loan term. 30-year loans lower the monthly payment, raising affordability.
• Reduce HOA / location costs. Buying in lower-tax or no-HOA areas frees up budget for principal.