How Much House Can I Afford? (Based on My Income & Debt)
Find out how much house you can afford
About the Calculator
House hunting is exciting until the numbers get real. This calculator gives you a price range that fits your income, debts, and down payment, not just what a lender might approve. It accounts for rates, credit, and comfort level so you can see a budget that feels sustainable. Use it to set boundaries before you fall in love with a listing, and to compare options with clarity. Try adjusting down payment, debts, or rates to see how much the target price moves. A few small changes can shift your range by tens of thousands, which is powerful when you are searching seriously.
Before taxes. Include salary, bonuses, commissions
Your actual rate depends on credit score and lender
Down Payment
✓ Great! 20%+ down means no PMI
Monthly Debt Obligations
You Can Afford a Home Up To:
Affordability Range
Monthly Payment Breakdown
(Based on $348,000 home price)
Monthly Budget After Housing:
Food, gas, entertainment, savings, emergencies, etc.
Financial Health Indicators
Housing costs as % of gross income
Under 28%: Recommended
28-36%: Manageable
Over 36%: Risky
Comparison by Home Price
How different home prices affect your monthly payment and DTI
| Home Price | Down Payment | Loan Amount | Monthly P&I | Total Monthly* | DTI Ratio |
|---|---|---|---|---|---|
| $350,000 | $90,000 | $260,000 | $1,643 | $2,114 | 28% ✓ |
| $400,000 | $90,000 | $310,000 | $1,959 | $2,476 | 33% ✓ |
| $450,000 | $90,000 | $360,000 | $2,275 | $2,838 | 38% ⚠️ |
| $500,000 | $90,000 | $410,000 | $2,591 | $3,371 | 45% ✗ |
| $550,000 | $90,000 | $460,000 | $2,908 | $3,753 | 50% ✗ |
*Includes principal, interest, taxes, insurance, and HOA
What If? Calculator
Adjust to see how changes affect affordability:
✓ Yes - You can afford this!
How to Calculate Manually
- 1
Enter your gross annual income (before taxes)
- 2
Specify your down payment amount or percentage
- 3
Input current mortgage interest rates
- 4
Add all monthly debt obligations
- 5
Review your affordable home price range
Examples
I earn $90,000/year with $800/month in debts and have $90,000 saved. What can I afford?
With 20% down and current rates, you can afford a home around $425,000-$475,000
FAQ
How accurate is this calculator?
This calculator provides a reliable estimate based on standard lending guidelines and the 28/36 rule used by most lenders. However, your actual approved amount may vary based on factors like your complete financial profile, the specific lender, and current market conditions. Use this as a starting point and get pre-approved for your exact budget.
What credit score do I need to buy a house?
Most conventional loans require a minimum credit score of 620, though you'll get better rates with 740+. FHA loans accept scores as low as 580 with 3.5% down, or 500 with 10% down. A higher score directly impacts your interest rate and can save you thousands over the life of your loan.
Does this include property taxes?
Yes, the calculator includes property taxes in your monthly payment estimate using the tax rate you specify in the Advanced Options (default 1.1% annually). It also accounts for homeowners insurance, HOA fees, and PMI if your down payment is less than 20%. This gives you a complete picture of your total housing costs.
How much should I put down?
While 20% down eliminates PMI and often gets better rates, it's not always necessary or optimal. FHA loans allow as little as 3.5% down, and conventional loans can go as low as 3%. Consider your savings goals, emergency fund, and whether investing the difference might yield better returns than avoiding PMI.
Why do I get a range, not a single number?
The calculator shows a range (typically ±5% of your target) because home affordability isn't one-size-fits-all. Your comfort level with debt, job stability, future expenses, and lifestyle preferences all matter. The range helps you understand your safe zone while leaving room for personal financial priorities and risk tolerance.
💡 Tips
- •The 28/36 rule: Housing costs should be ≤28% of gross income, total debts ≤36%
- •20% down payment eliminates PMI and gets better rates
- •Lower DTI ratio means easier approval and better loan terms
- •Don't forget to budget for maintenance, utilities, and repairs
- •Get pre-approved before house hunting to know your real budget
🎉 Fun Facts
- •The Total Cost Shock: On a $400,000 mortgage at 7% for 30 years, you'll pay $558,914 in total interest. That $400,000 home actually costs nearly $959,000 by the time it's paid off (principal + interest only, not including taxes/insurance).
- •The Payment Components (PITI): Most borrowers focus on principal and interest, but PITI (Principal, Interest, Taxes, Insurance) is the true monthly cost. On a $400,000 home, P&I might be $2,661 but total PITI could be $3,500-4,000+ with taxes and insurance.
- •The 15 vs 30 Year Math: A 15-year mortgage roughly doubles your monthly payment but saves 50-60% in total interest. On a $400,000 loan at 6.5%, you'd pay $178,000 interest (15-year) vs. $518,000 (30-year).
- •The Escrow Reality: Lenders escrow your property taxes and insurance, but tax assessments increase 2-5% annually in most areas. Your "fixed" mortgage payment actually increases $50-150/year as escrow adjustments hit.
- •The PMI Cost: Put down less than 20% and you'll pay PMI (Private Mortgage Insurance) of 0.5-1.5% of loan value annually. On a $400,000 loan that's $2,000-6,000/year or $167-500/month extra until you hit 20% equity.
- •The Bi-Weekly Hack: Switching from monthly to bi-weekly payments (26 half-payments = 13 full payments/year) can cut a 30-year mortgage to 23-25 years and save $80,000-120,000 in interest by making one extra payment annually.