Home Affordability Calculator: How Much House Can I Afford?
The price range a lender would approve, and the one you'd actually be comfortable with, from your income, debts, and cash.
Updated October 2026
Data verified for 2026. Educational estimates only, not financial or tax advice.
| Approach | Max price | Monthly housing |
|---|---|---|
| Conservative (28/36) | $285,000 | $2,210 |
| Standard (31/43) | $314,000 | $2,450 |
| Stretch (36/50) | $362,000 | $2,846 |
| Rate | Max price |
|---|---|
| 6.280% | $338,000 |
| 6.780% | $326,000 |
| 7.280% | $314,000 |
| 7.780% | $303,000 |
| 8.280% | $293,000 |
| Down | Max price |
|---|---|
| $0 | $278,000 |
| $20,000 | $296,000 |
| $40,000 | $314,000 |
| $60,000 | $332,000 |
| $80,000 | $367,000 |
How lenders decide how much house you can afford
Lenders don't start from the home price; they start from your income and work backward using two debt-to-income (DTI) ratios. The front-end ratio caps your full monthly housing cost (principal, interest, property tax, insurance, PMI, HOA) as a share of gross monthly income. The back-end ratio caps housing *plus* all other monthly debts (car, student loans, credit card minimums). Whichever limit you hit first sets your budget; the calculator tells you which one is binding.
From that monthly budget it solves for the highest price whose *complete* payment fits, including taxes and insurance that scale with price and PMI that switches on under 20% down. Most affordability calculators skip PMI, which is why their numbers run high for buyers with small down payments.
28/36 vs. 31/43 vs. stretching
- 28/36 is the classic conservative rule: 28% of gross income for housing, 36% for all debt. It leaves room for saving, kids, and surprises.
- 31/43 matches what FHA and many conventional lenders approve routinely. It's a realistic ceiling for most buyers.
- 36/50 is the upper edge of what some lenders allow with strong credit and reserves. Being *approved* for it doesn't mean it's comfortable; at 50% DTI, one job loss is a crisis.
The table compares all three so you can see the gap between "maximum approval" and "sleep at night". A common compromise: get approved at 31/43, shop at 28/36.
What moves the number most
- Interest rate: each 1 point at today's rates changes affordability by roughly 10%. The rate table shows your range.
- Other debts: a $450 car payment can cut your max price by $70,000+ at typical ratios. If the debt ratio is your limit, paying off a loan before applying is often worth more than a bigger down payment.
- Down payment: more cash lowers the loan and, above 20%, removes PMI. The down-payment table shows the effect.
- Property tax: a 1% vs. 2% tax rate is the difference between Texas and Colorado buyers affording very different prices on the same income.
Costs this calculator can't see
Closing costs (2–5% of price), moving, immediate repairs, furniture, and higher utilities. Keep 1%–2% of the home's value per year for maintenance. And your real budget is based on take-home pay, not gross: run your income through the take-home pay calculator and make sure the monthly housing figure still fits alongside retirement savings and an emergency fund.
Frequently asked questions
How much house can I afford on a $100,000 salary?+
At today's rates with 10% down and modest debts, roughly $350,000–$420,000 under the 28/36 rule and up to about $470,000 at 31/43. Enter your exact debts, down payment, and property-tax rate above; those swing the answer by $100,000 or more.
Is the 28% rule still realistic?+
It's conservative in high-cost metros where many buyers exceed it, but it remains the best guide for a comfortable budget. Lenders will approve higher; the calculator shows both.
Does the calculator include PMI and property tax?+
Yes. PMI is added automatically when the down payment is below 20% of the price, and property tax and insurance scale with the price, so the monthly budget reflects the full payment.
Should I use gross or net income?+
Lenders use gross (pre-tax) income, and so does this calculator. For your own comfort check, compare the monthly housing figure to your take-home pay; if it's over 35% of net, it will feel tight.
Do co-borrower incomes count?+
Yes, add them under co-borrower income. Their debts also count, so include those under monthly debt payments.