Real Estate
Home Affordability Calculator
How much house can you afford? Find the home price your income, debts and down payment support under US lender guidelines, with the full monthly payment.
You can afford about
$354,076
home price
Monthly payment
$2,333
mortgage, tax, insurance & HOA
Loan amount
$294,076
Down payment
16.9%
of the price
Debt-to-income
34.0%
with your other debts
On a gross income of $100,000 a year, the 28% / 36% guideline caps your total housing payment at about $2,333 a month. With $60,000 down, that supports a home of about $354,076.
The 28% housing limit is the tighter one, so paying down other debts would not raise this price.
Your down payment would be 16.9% of the price. Below 20%, most lenders add mortgage insurance (PMI), which is not included here and would lower the price you can afford.
These are lending guidelines, not a budget: a payment a lender accepts can still be more than you want to spend each month.
Your numbers
+Advanced options
Where the monthly payment goes
- Principal & interest
- $1,859
- Property tax
- $325
- Insurance
- $150
- HOA dues
- $0
See how the mortgage rate changes what you can afford
Same income, debts and savings — three mortgage rates. The payment you can carry stays the same; a higher rate means less of it goes to the price of the home.
5.5% rate
$382,741
home price
6.5% rate
$354,076
home price
7.5% rate
$329,109
home price
How the affordable price is found
Max payment = min(Income × 28%, Income × 36% − Other debts)
Income is gross monthly income. The 28% and 36% are the common US guideline ratios (set your lender's or country's limits under advanced options); the lower of the two limits is your maximum housing payment, covering the mortgage, property tax, home insurance and HOA dues.
The calculator then finds the highest price whose full monthly payment equals that maximum, with your savings as the down payment. Because the mortgage payment grows in proportion to the loan, the price can be solved exactly: price = (max payment − insurance − HOA + down payment × k) ÷ (k + monthly tax rate), where k is the monthly payment per unit of loan at your rate and term. PMI and closing costs are not included.
How much house can you afford?
Lenders decide how much to lend mostly from one question: how much of your income would the payment take? The answer is the debt-to-income ratio, and two versions of it matter — housing alone, and housing plus every other debt you already pay.
Debts move the answer more than people expect. Every existing monthly payment comes straight out of the total-debt allowance. When that limit is the tighter one, paying off a car loan can add tens of thousands to the price you can afford.
So does the rate. The payment you can carry is fixed by your income, so a higher mortgage rate leaves less of it to repay the price itself. The comparison below the calculator shows how much one percentage point changes the home you can afford.
A lender's limit is a ceiling, not a target. It does not know about childcare, savings goals, or how much you want to keep for the rest of life. Once you have a price in mind, check the full payment in the mortgage calculator, and whether buying beats renting with the rent vs. buy calculator.
Home Affordability FAQ
What is the 28/36 rule?+
It is the classic US lender guideline: your housing payment (mortgage, property tax, insurance and HOA dues) should take no more than 28% of your gross monthly income, and housing plus all other debt payments no more than 36%. The tighter of the two limits sets what you can borrow. You can change both percentages under advanced options.
The 28/36 rule explained: what lenders let you spend on housing
Do lenders allow more than 36%?+
In the US, often yes: many lenders approve total debt ratios up to 43%, and some government-backed loans go higher for strong applicants. Other countries set their own limits: in France, for example, lenders must generally keep all loan payments, insurance included, within 35% of income. A higher ratio raises the price you can borrow for, but it also leaves less of your income for everything else. A lender's maximum is not the same as a comfortable budget.
Which debts count?+
Regular monthly debt payments that appear on a credit report: car loans, student loans, minimum credit card payments, personal loans, and court-ordered payments such as alimony or child support. Your current rent, utilities, phone and groceries are not counted.
Does the result include PMI or closing costs?+
No. Private mortgage insurance, usually charged when the down payment is under 20% of the price, would add to the monthly payment and lower the price you can afford. Closing costs are paid in cash at purchase, so keep them out of the down payment savings you enter.
Why is income measured before tax?+
Lender guidelines are set against gross (pre-tax) income, so the calculator uses the same basis. Because take-home pay is lower, the same payment is a larger share of what actually reaches your account, which is another reason to treat the result as an upper limit.
Learn more
- The 28/36 rule explained: what lenders let you spend on housingLenders cap your payment with two ratios, and only the tighter one counts. A worked example shows which one limits you.
- Rent vs. buy: why the answer depends on how long you stayBuying costs more up front and pays off with time. The price-to-rent ratio and your time horizon tell you which side wins.
- France's 35% debt-to-income rule: how much French banks let you borrowOne ratio decides most French home loans: all loan payments, insurance included, within 35% of net income. Here's how it works.
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Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.
See our full disclaimer and how we calculate.
Last reviewed 2026-10-17 by the Yield Analyst team