House Affordability Calculator
Find the home price that fits your income, monthly debts and down payment.
The 28/36 rule
A common guideline is that housing costs should not exceed 28% of your gross income, and total debts, including housing, should not exceed 36%. The calculator takes the lower of the two limits as your monthly housing budget, then works out the price that fits once the mortgage payment, property tax and insurance are all included.
Example
On 90,000 of income with 500 a month in other debts and 60,000 down at 6.5%, the 28% rule gives a housing budget of 2,100 a month. That supports a home of about 328,700, with a mortgage of about 268,700.
Lenders use their own rules and may accept higher ratios, but a smaller payment leaves more room for repairs, savings and surprises. Closing costs and moving costs are not included, so keep some cash back.
The 28/36 rule
Lenders and advisers often use two limits. Your housing costs (mortgage, property tax and insurance) should stay under 28% of your gross monthly income, and your total debt payments, including housing, should stay under 36%. The calculator uses whichever limit is lower as your monthly housing budget.
What you could afford at different incomes
These examples assume $500 a month in other debts, a $60,000 down payment, a 6.5% rate on a 30-year loan, 1.1% property tax and $1,200 a year of insurance.
| Gross yearly income | Monthly housing budget | Home price |
|---|---|---|
| $60,000 | $1,300 | $218,207 |
| $90,000 | $2,100 | $328,745 |
| $120,000 | $2,800 | $425,465 |
| $150,000 | $3,500 | $522,186 |
Beyond the rule of thumb
- A lender may approve more than you are comfortable paying, so check your own budget.
- Keep cash for closing costs, moving and repairs, in addition to the down payment.
- A lower interest rate or a bigger down payment increases the price you can afford, while large monthly debt payments, such as a car loan, reduce it.
- HOA fees and mortgage insurance, when your down payment is under 20%, reduce the budget for the loan itself.
Next steps: Mortgage Calculator, Debt-to-Income (DTI) Ratio Calculator, Down Payment Calculator.
Frequently asked questions
How much house can I afford on my salary?
A rough guide is a home price of about 3 to 4 times your yearly income, but your debts, down payment and the interest rate matter a lot. Enter your numbers in the calculator.
What is a good debt-to-income ratio for a mortgage?
36% or lower is considered good, and many lenders accept up to about 43%. Use the DTI calculator to check yours.
Does this include property tax and insurance?
Yes, using the tax rate and insurance amount you enter.
Should I buy the most expensive house I qualify for?
Not necessarily. A payment well under your maximum gives you room for savings, repairs and life changes.
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