How Much House Can I Afford?
Find out how much house you can afford. Calculate maximum home price based on income, debts, down payment, and current mortgage rates.
How This Calculator Works
Calculation methodology and assumptions
Uses the 28/36 rule: maximum 28% of gross monthly income for housing costs (front-end DTI), and maximum 36% for total debt payments including housing (back-end DTI). Housing costs include principal, interest, property taxes, and insurance (PITI). Reverse-calculates the maximum loan amount from the allowable monthly payment.
Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule says your housing costs shouldn't exceed 28% of gross monthly income, and total debt payments shouldn't exceed 36%. On $85,000/year ($7,083/month), max housing = $1,983/month, max total debt = $2,550/month.
How much house can I afford on $100K salary?
With a $100K salary, following the 28% rule, your max monthly housing payment is about $2,333. With a 20% down payment and 7% rate, you could afford approximately a $350,000-$400,000 home, depending on property taxes and insurance.