Home affordability calculator
This home affordability calculator works out the most expensive home you can afford from your income, monthly debts, down payment and rate.
The 28/36 guideline
Lenders traditionally look at two ratios: housing costs (principal, interest, taxes and insurance) up to about 28% of gross monthly income, and total debt payments, including the new mortgage, up to about 36%. The calculator takes the lower of the two limits and solves for the highest price whose full monthly cost fits.
Many lenders approve higher ratios, sometimes up to 43% or beyond with strong credit, but a higher ratio leaves less room for repairs, childcare and savings.
What makes the answer move most
Interest rate, existing debt and down payment move the result the most. Paying off a $400 car payment can raise the price you can afford by tens of thousands, because the 36% ratio is the binding limit for many buyers. Try changing the debt field to see this.
Home price by income
With $60,000 down, a 6.5% rate, $450 a month of other debt and a 30-year term, here is the price each income supports under the 28/36 guideline.
| Gross income | Max monthly housing | Home price | Monthly payment |
|---|---|---|---|
| $60,000 | $1,350 | $221,000 | $1,345 |
| $80,000 | $1,867 | $293,000 | $1,866 |
| $100,000 | $2,333 | $338,000 | $2,331 |
| $120,000 | $2,800 | $398,000 | $2,795 |
| $150,000 | $3,500 | $489,000 | $3,499 |
| $200,000 | $4,667 | $639,000 | $4,660 |
How rates and debts move the answer
At your income of $110,000, each full point of interest rate changes the price you can afford by about $25,000. Paying off $300 a month of other debt would raise it by about $0.
| Scenario | Home price |
|---|---|
| Rate 5.5% | $396,000 |
| Rate 6.5% (base) | $368,000 |
| Rate 7.5% | $343,000 |
| No other monthly debt | $368,000 |
Frequently asked questions
How much house can I afford on my salary?
A common guideline keeps housing costs under 28% of gross income and total debt under 36%. Enter your income, debts and down payment above for a specific estimate.
Should I buy the maximum I qualify for?
Not necessarily. Qualifying is a lender’s limit, not a budget. Leave room for maintenance, savings and income changes.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.