How Much House Can I Afford Calculator
How much house can I afford: maximum home price from your income, debts and down payment using the 28/36 lender rule.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Max monthly housing payment
- $2,566.67
- Loan amount
- $329,866
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Annual household income
- 110000 $
- Monthly debt payments
- 600 $
- Down payment
- 60000 $
- Interest rate
- 6.3 %
- Loan term
- 30 years
- Property tax rate
- 1 %/yr
- Homeowners insurance
- 2400 $/yr
- HOA dues
- 0 $/mo
- Front-end ratio
- 28 %
- Back-end ratio
- 36 %
Results
- Maximum home price
- $389,866
- Max monthly housing payment
- $2,566.67
- Loan amount
- $329,866
How does the How Much House Can I Afford Calculator work?
Home affordability is the highest price you can buy while keeping your mortgage and other debts within lender limits. Lenders typically cap housing costs (PITI plus HOA) at 28% of gross monthly income (front-end ratio), and all debt payments at 36% (back-end ratio). The smaller limit sets your maximum payment.
The calculator then solves for the home price whose mortgage, property tax, insurance and HOA fit that payment, given your down payment and rate.
For example, with $100,000 gross annual income, no monthly debt, $60,000 down, a 6.3% 30-year loan, 1% property tax and $2,400 annual insurance, the 28% front-end limit supports a home price of about $357,000 before any HOA dues.
Sources
Frequently asked questions
Can I get approved above 36% DTI?
Often yes. FHA and some conventional programs allow 43% to 50% with strong credit or reserves. Raise the back-end ratio to see that scenario.
Should I borrow the maximum?
Not necessarily. Leave room for savings, repairs and rising costs. Many planners suggest staying below the lender maximum.
How much house can I afford on $100,000 a year?
With no other debt, the 28% rule allows about $2,333 a month for PITI. At 6.3% over 30 years with $60,000 down, 1% property tax and $2,400 insurance, that is about a $355,000 home.
What is the minimum down payment to buy a house?
FHA loans allow 3.5% down with a 580 credit score, and some conventional loans allow 3%. VA and USDA loans can require nothing down.