How this calculator works
Lenders typically cap housing costs near 28% of gross monthly income and total debt payments at 36%–43%. The calculator takes the lower of those limits, subtracts insurance, and solves for the home price whose principal, interest and property tax fit inside it after your down payment. The comfortable figure uses a stricter 25% housing limit.
Worked example
With the example values below: Home price you can afford, $394,000 (monthly payment about $2,567). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Annual pre-tax income | $110,000 |
| Monthly debt paymentsCar, student, card minimums | $500 |
| Down payment saved | $60,000 |
| Interest rate | 6.25% |
| Loan term | 30 years |
| Property tax rate | 1.1% |
| Homeowners insurance / yr | $1,800 |
| Debt-to-income limit | 36% (conservative) |
How lenders decide what you can afford
Lenders look at your debt-to-income ratio (DTI): monthly debt payments divided by gross monthly income. They check two versions. The front-end ratio counts only housing (principal, interest, taxes, insurance, PMI and HOA dues) and is commonly capped around 28%. The back-end ratio adds car loans, student loans, card minimums and other debts, and is commonly capped at 36% to 43%, with some programs going higher.
This calculator applies whichever limit is tighter for you. If you have significant other debts, the back-end ratio is usually what limits your price.
What the lender approves vs. what's comfortable
A lender's maximum is the most you can borrow, not what fits your life. It's based on gross pay, so it ignores taxes, retirement savings, childcare and everything else your take-home pay covers. That's why the calculator also shows a comfortable price at a 25% housing ratio.
Before choosing a price, add up what you actually spend each month and see how a new payment fits. Leave room for maintenance, which typically runs 1% to 2% of the home's value a year; the cost of owning a home calculator includes it.
What changes the price you can afford
Run a few scenarios to see which lever matters most for you.
- Interest rate: each 1-point rise in the rate cuts buying power by roughly 10%.
- Down payment: every extra dollar down adds a dollar to the price without raising the payment.
- Property tax and insurance: high-tax or high-premium areas leave less room for the loan itself.
- Other debts: paying off a $400 car payment can add $50,000 or more of buying power.
- Loan type: FHA, VA and USDA loans have different down payment and DTI rules.
Next steps
Use the result as a starting point, then get preapproved, which means a lender reviews your credit, income and assets and states how much they'll lend. A preapproval letter also makes your offers stronger. The mortgage calculator shows the full payment on a specific home, and the down payment calculator shows how long it takes to save for it.
Frequently asked questions
How much house can I afford with a $100,000 salary?
Around $335,000 with $30,000 down and no other debts, at a 6.25% 30-year rate, 1.1% property tax and $1,800 a year of insurance. That keeps the full payment near $2,333 a month, 28% of gross income. Car loans, student loans or a higher rate lower the figure.
How much house can I afford with an $80,000 salary?
Around $264,000 with $25,000 down and no other debts, under the same assumptions. The monthly payment comes to about $1,867, which is 28% of $6,667 in gross monthly income.
What is the 28/36 rule?
A common lender guideline: spend no more than 28% of gross monthly income on housing (principal, interest, taxes and insurance) and no more than 36% on all debt payments combined. Some loan programs allow total debt up to 43% or higher.
Does my down payment change how much house I can afford?
Yes. Every dollar you put down adds a dollar to the price you can buy without raising the payment, and putting down 20% or more on a conventional loan avoids PMI, which leaves more of the payment for the loan itself.
Should I buy a house at the top of my budget?
Usually not. A lender's maximum assumes you can spend up to about 28% of gross pay on housing, before taxes and savings. Buying below it leaves room for maintenance, repairs, retirement contributions and changes in income.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.