How Much House Can I Afford?
A price range based on your income and debts
Free to compare. No obligation.
Estimate, not a loan offer or pre-approval. Lenders look at credit, savings and the full picture. We may earn a commission when you click. How we make money
| Comfortable | Stretch |
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A lower rate raises what you can afford
The rate above is an example. Compare quotes to see the rate lenders would offer you, then rerun the numbers.
Free to compare. No obligation.
How this home affordability calculator works
Lenders start with two debt-to-income ratios. The housing ratio says your full monthly housing payment, including principal, interest, property tax, insurance, PMI and HOA, should be no more than about 28% of your gross monthly income. The total-debt ratio says housing plus your other monthly debts should be no more than about 36%. This calculator finds the highest home price whose full payment fits both.
With the example numbers, $120,000 of income allows $2,800 a month for housing under the 28% limit, and $3,100 under the 36% limit after $500 of other debts. The lower of the two, $2,800, sets the comfortable price.
Comfortable vs. stretch
The stretch figure uses a 43% total-debt limit with no separate housing limit, which is closer to the upper end many lenders allow. Being approved for a payment doesn't mean it fits your budget. Savings, job stability, child care and other costs aren't in a lender's ratio, so treat the stretch number as a ceiling, not a target.
What changes the answer most
- Interest rate. A lower rate lets the same payment carry a larger loan.
- Other debts. Paying off a car loan can raise the price you qualify for more than a raise would.
- Down payment. Reaching 20% removes PMI and shrinks the loan.
- Property tax. It varies widely by county, so check the rate where you're looking.
Frequently asked questions
How much house can I afford with a $100,000 salary?
With $500 a month of other debts, $60,000 down, a 6.5% rate and typical taxes and insurance, about $338,000 under the 28/36 rule, for a payment around $2,333 a month. Stretching to a 43% total-debt limit raises that to about $436,000. Enter your own numbers above for a closer estimate.
How much house can I afford with an $80,000 salary?
With the same assumptions ($500 of other debts, $60,000 down, 6.5%), about $289,500 under the 28/36 rule, for a payment around $1,866 a month, or about $342,000 at a 43% total-debt limit.
What is the 28/36 rule?
A common guideline that your housing payment (principal, interest, tax, insurance, PMI and HOA) should be no more than 28% of your gross monthly income, and all your debt payments together no more than 36%. Many lenders allow higher ratios, especially with strong credit or savings.
Do lenders use gross or net income?
Lenders use gross income, before taxes and deductions. That's why a payment that fits a lender's ratios can still feel tight. Check it against your take-home pay and real monthly spending.
How much house can I afford with a VA loan?
VA lenders generally look at a 41% debt-to-income guideline plus a residual income test, the money left each month after major expenses. There's no down payment requirement and no monthly mortgage insurance, so the same income can often support a higher price. Try the VA mortgage calculator, or set the all-debt limit above to 41%.
Should I buy the most house I can afford?
Usually not. Lender ratios don't account for child care, retirement savings, repairs or an emergency fund. Many buyers aim below their approval amount so the payment still works if income dips or costs rise.