How much house can I afford on my salary?

Under the conventional 28/36 guideline, your full housing payment (principal, interest, taxes, insurance, PMI, and dues) should stay under 28% of gross monthly income, and housing plus all other debt payments under 36%. At today's rates that typically works out to a price of roughly three to four times household income with a modest down payment, but taxes, insurance, debts, and the rate move it a lot. Enter your own numbers above for a precise figure.

What is the 28/36 rule?

It is the traditional conventional-mortgage guideline: spend no more than 28% of gross monthly income on housing (the front-end ratio) and no more than 36% on housing plus all other monthly debt payments (the back-end ratio). Automated underwriting often approves higher back-end ratios, up to 45% or even 50% for borrowers with strong credit and cash reserves, but 28/36 remains a sound ceiling for a comfortable budget.

What debts count toward my debt-to-income ratio?

Minimum required payments on recurring debts: car loans and leases, student loans, credit card minimums, personal loans, other mortgages, and court-ordered child support or alimony. Lenders do not count utilities, phone bills, groceries, car insurance, or other living costs, which is why a debt-to-income limit is a ceiling, not a budget.

Does a bigger down payment let me afford more?

Yes, in two ways. Every dollar down is a dollar of price you don't borrow, and reaching 20% down removes PMI, which frees part of the monthly budget for a larger loan. In the calculator, the 'one change at a time' table shows exactly how much more house $10,000 of extra down payment buys at your rate.

Should I borrow the maximum the bank approves?

Usually not. Lenders measure gross income and ignore taxes, childcare, retirement saving, and maintenance, which runs about 1% of the home's value a year. Many planners suggest keeping the housing payment nearer 25% of gross income, or under a third of take-home pay, so a repair bill or a job change doesn't turn into a missed payment.

Home Affordability Calculator

K-06

The highest home price your income, debts, and savings support under a lender's debt-to-income rules, the monthly payment it brings, and what would raise it.

Reviewed October 2026 · Free, no sign-up · 28/36 and FHA limits · Runs in your browser

Your finances

Household income / year

Gross, before tax, for everyone on the loan.

Other debt payments / month

Minimums on car, student, and card debt. Not rent, utilities, or groceries.

Cash for the down payment

Interest rate

Loan term

15 yr20 yr30 yr

PMI / year

Applied only when the down payment is under 20% of the price.

Property tax rate

Effective rate, as a share of the price each year.

Homeowners insurance / year

HOA dues / month

Housing limit, % of income

The front-end ratio: 28% is the conventional guideline, 31% for FHA.

All-debt limit, % of income

The back-end ratio: 36% is conservative, 43% the common ceiling, up to 50% with strong files.

You can afford a home up to $330,604N3, with a $2,333N4 monthly payment set by your 28% housing limit.

Plan K-0630-year fixed at 6.25% with $40,000 down. Lenders also weigh credit, reserves, and job history.

Loan amountN3: $290,604; 12.1% down
Monthly paymentN4: $2,333/mo; with taxes, insurance, PMI
Housing ratioN5: 28.0%; limit 28%
All-debt ratioN5: 32.8%; limit 36%

Your monthly income, and the lender's two lines

$8,333 a month before tax, at the highest price you qualify for

Housing payment: $2,333; 28%
Other debt payments: $400; 5%
Left for tax, savings, living: $5,600; 67%
Gross monthly income: $8,333; 100%

What moves your budget

The same income and costs, one lever at a time

At other interest rates
Rate	Highest price	Payment
5.25%	$358,198	$2,333
5.75%	$343,944	$2,333
6.25%yours	$330,604	$2,333
6.75%	$318,117	$2,333
7.25%	$306,427	$2,333

One change at a time
If you had	Highest price
$10,000 more down payment	+$8,976
$200 a month less in other debts	No change
Half a point lower rate	+$13,340
$10,000 more household income	+$31,859

Paying down debt moves the answer only when the all-debt limit is the one holding you back.

Estimates for education only, not a pre-approval. Lenders also weigh credit score, cash reserves, and employment history, and some cap loan size by county. Talk to a licensed loan officer before you shop.

How lenders decide what you can afford

A lender doesn't start from the house; it starts from your income. The question underwriting asks is how large a monthly payment your gross income can carry, and the answer comes from two debt-to-income ratios. The front-end ratio compares the full housing payment to gross monthly income. The back-end ratio adds every other required debt payment. Whichever limit binds first sets your maximum payment, and the payment sets the price.

That is why affordability moves so much with things that have nothing to do with the home itself. A car payment can cost more house than a quarter point of rate. A larger down payment helps twice: you borrow less, and at 20% down the PMI disappears from the payment. Property taxes and insurance count against the same budget as the loan, so a house in a high-tax county buys a smaller loan on the same income.

This calculator solves for the price directly. It finds the highest price whose complete payment, including taxes, insurance, PMI, and dues, sits exactly on the binding limit. Once you have a price, the mortgage calculator breaks that payment down month by month.

How to use this calculator

Enter gross household income. Use pre-tax income for everyone who will be on the loan, the figure a lender verifies from pay stubs and tax returns.
Add your monthly debt payments. Use the minimums on your credit report: car, student, card, and personal loans, plus any support you pay. Leave out rent, since the new payment replaces it.
Enter the cash you'll put down. Keep closing costs and a cushion of reserves aside; this field is the down payment alone.
Set the rate, term, and house costs. The property tax rate is a percentage of the price, so it scales with the house the calculator finds.
Choose the lender limits. 28% and 36% are the conservative conventional guideline. Try 31% and 43% to see the FHA standard.
Read the verdict, then the levers. The verdict names the binding limit. The tables below show what a different rate, more savings, or less debt would do to the price.

Formulas & methodology

The calculator turns the two ratios into a payment budget, then solves the payment equation for price. Each note below shows the working with your numbers.

N1Monthly payment budget

Housing limit = Income ÷ 12 × front %

All-debt limit = Income ÷ 12 × back % − Debts

Budget = min(Housing limit, All-debt limit)

N2Payment per dollar borrowed

k = r ÷ (1 − (1 + r)^−n)

r: Annual rate ÷ 12
n: Term in years × 12

N3Highest price

P = (Budget − Ins ÷ 12 − HOA + D × (k + m)) ÷ (k + m + t)

D: Down payment, in dollars
m: PMI rate ÷ 12, or 0 at 20% down
t: Property tax rate ÷ 12
P: Highest price the budget carries

N4Payment at that price

Payment = (P − D) × (k + m) + P × t + Ins ÷ 12 + HOA

N5Debt-to-income ratios

Housing ratio = Payment ÷ (Income ÷ 12)

All-debt ratio = (Payment + Debts) ÷ (Income ÷ 12)

The payment rises steadily with price, so there is exactly one highest price for each budget. PMI creates a step: the calculator first solves without PMI, checks whether the down payment still reaches 20% of that price, and if not solves again with PMI included. When the answer falls between the two, the highest price is the one where your down payment is exactly 20%.

Worked example

A household earning $100,000 a year has $8,333 of gross monthly income and $400 of other debt payments. At 28%, the housing limit is $2,333; at 36% less debts, the all-debt limit is $2,600. The 28% housing limit binds, so the budget is $2,333 a month.

With $40,000 down, a 30-year rate of 6.25%, a 0.9% property tax rate, and $2,100 of insurance, that budget carries a home of $330,604, about 3.3 times income. The down payment is 12.1% of the price, so PMI of $121 a month is part of the payment.

Line item	Amount
Highest price	$330,604
Loan amount	$290,604
Principal & interest	$1,789
Property taxes	$248
Insurance	$175
PMI	$121
Monthly payment	$2,333
Housing ratio / all-debt ratio	28.0% / 32.8%

Switch the limits to FHA's 31/43 and the same household qualifies for $364,739, $34,135 more, with a monthly payment of $2,583. A higher limit buys more house, and it also leaves less of each paycheck for everything else.

Debt-to-income limits by loan program

Program	Housing ratio	All-debt ratio
Conventional guideline	28%	36%; automated approvals reach 45–50%
FHA	31%	43%; up to about 57% with compensating factors
VA	No set limit	41% guideline, plus a residual-income test
USDA	29%	41%

These are starting points. Credit score, cash reserves, and the loan-to-value ratio decide how far an underwriter stretches. If you're choosing between the first two programs, the FHA vs. conventional calculator compares their real cost, mortgage insurance included.

Affordable is not the same as comfortable

A debt-to-income limit is the most a lender will allow, not what a household should spend. Underwriting looks at gross pay and ignores income tax, retirement contributions, childcare, commuting, and the upkeep every house needs. Budget roughly 1% of the home's value each year for maintenance and repairs, more for older homes, on top of the payment the calculator shows.

Run your take-home test. Keep the payment under about a third of net pay, or try a 25% housing limit in the calculator.
Keep reserves after closing. Three to six months of the new payment in savings protects you from the first surprise repair.
Price the rate risk. If you're shopping before you lock, check the rate table: half a point higher can take tens of thousands off the budget.
Compare with renting. If the affordable price only works by stretching, the rent vs. buy calculator shows whether waiting costs you anything.

Affordability FAQ

How much house can I afford on my salary?: Under the conventional 28/36 guideline, your full housing payment (principal, interest, taxes, insurance, PMI, and dues) should stay under 28% of gross monthly income, and housing plus all other debt payments under 36%. At today's rates that typically works out to a price of roughly three to four times household income with a modest down payment, but taxes, insurance, debts, and the rate move it a lot. Enter your own numbers above for a precise figure.
What is the 28/36 rule?: It is the traditional conventional-mortgage guideline: spend no more than 28% of gross monthly income on housing (the front-end ratio) and no more than 36% on housing plus all other monthly debt payments (the back-end ratio). Automated underwriting often approves higher back-end ratios, up to 45% or even 50% for borrowers with strong credit and cash reserves, but 28/36 remains a sound ceiling for a comfortable budget.
What debts count toward my debt-to-income ratio?: Minimum required payments on recurring debts: car loans and leases, student loans, credit card minimums, personal loans, other mortgages, and court-ordered child support or alimony. Lenders do not count utilities, phone bills, groceries, car insurance, or other living costs, which is why a debt-to-income limit is a ceiling, not a budget.
Does a bigger down payment let me afford more?: Yes, in two ways. Every dollar down is a dollar of price you don't borrow, and reaching 20% down removes PMI, which frees part of the monthly budget for a larger loan. In the calculator, the 'one change at a time' table shows exactly how much more house $10,000 of extra down payment buys at your rate.
Should I borrow the maximum the bank approves?: Usually not. Lenders measure gross income and ignore taxes, childcare, retirement saving, and maintenance, which runs about 1% of the home's value a year. Many planners suggest keeping the housing payment nearer 25% of gross income, or under a third of take-home pay, so a repair bill or a job change doesn't turn into a missed payment.