House Affordability Calculator

Find out how much house you can afford using the debt-to-income rules lenders actually use.

By the CalculateBright team · Updated · How we calculate

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    How to use the House Affordability calculator

    1. Enter your numbers. Fill in annual household income, monthly debt payments, down payment, interest rate, loan term.
    2. Enter costs & limits details. Fill in property tax rate, home insurance / yr, hoa / month, dti limits.
    3. Read your results. Results update instantly. The headline shows the you can afford a home up to; the breakdown below show the details.

    How affordability is calculated

    Lenders look at two debt-to-income (DTI) ratios. The front-end ratio limits housing costs (principal, interest, taxes, insurance, HOA) to a share of gross monthly income, traditionally 28%. The back-end ratio limits all debt payments including housing, traditionally 36% (many programs allow up to 43%–50%). This calculator takes the lower of the two limits and solves for the price whose total housing cost fits.

    The formula

    Max housing = min(Income/12 × front%, Income/12 × back% − debts)
    Price = (Max housing − ins − HOA + f × Down) ÷ (f + tax%/12)

    where f is the monthly payment per $1 borrowed at your rate and term.

    Beyond the lender’s number

    Being approved doesn’t mean it’s comfortable. Budget for maintenance (1%–2% of the home’s value per year), utilities and an emergency fund.

    Worked example

    With these inputs: annual household income (gross)$120,000; monthly debt payments$500; down payment$60,000; interest rate6.5%; loan term30y; property tax rate1.1%; home insurance / yr$1,500; dti limitsConservative 28/36.

    The calculator gives a you can afford a home up to of $422,000 (monthly housing budget $2,800 (28/36 rule)). Other results: loan amount$362,011, down payment$60,000, down payment %14.2%, max total debt payments$3,600.

    What your results mean

    The maximum price is the highest home price where your full housing payment stays within the debt-to-income limits you chose. It is a ceiling, not a target: many buyers aim lower to leave room for savings and repairs.

    Tips

    • Use 28/36 for a conservative budget; 31/43 is closer to what some loan programs allow.
    • Remember closing costs (often 2–5% of the price) and moving costs on top of the down payment.
    • Get preapproved to confirm what a lender will actually offer.

    Frequently asked questions

    How much house can I afford on a $100,000 salary?

    Under the 28/36 rule with no other debts, 20% down and a 6.5% rate, roughly $370,000 assuming 1.1% property tax and $1,500/yr insurance. Enter your details above for a precise estimate.

    What is the 28/36 rule?

    Housing costs should be no more than 28% of gross monthly income, and all debt payments combined no more than 36%.

    What is the 28/36 rule?

    Spend no more than 28% of gross income on housing and 36% on total debt payments.

    Does this include PMI?

    No. With less than 20% down, PMI would reduce the affordable price slightly.

    Should I use gross or take-home pay?

    Lenders use gross income. For your own budget, check against take-home pay with the paycheck calculator.

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    Sources