How Much House Can I Afford?
Find your real number using the 28/36 rule lenders actually use. Enter your income, debts, and down payment to get a specific price range in seconds.
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The 28/36 Rule Explained
Before they approve a mortgage, lenders check two ratios. Both need to be within limits for you to qualify comfortably. The front-end ratio covers housing only; the back-end DTI adds all other debts.
Front-End Ratio
Your monthly housing costs, mortgage principal, interest, property taxes, and insurance, should be no more than 28% of your gross monthly income.
Example: $80,000 salary
$6,667/mo × 28% = $1,867 max housing payment
Back-End Ratio
Your total monthly debt payments, housing plus car loans, student loans, and credit card minimums, should be no more than 36% of gross monthly income.
Example: $80,000 salary + $400/mo debts
$6,667 × 36% − $400 = $2,000 max housing
Note: Many lenders today allow up to 43-50% back-end DTI for borrowers with strong credit. The 36% threshold is the conservative, traditionally safe limit. A down payment below 20% typically adds PMI to your monthly payment. If you are buying a new home before selling your current one, a bridge loan can cover the gap, though rates are typically higher than standard mortgages.
Quick Reference: Home Price by Salary
| Annual Salary | Est. Max Home Price | Est. Monthly Payment | Down Payment (10%) |
|---|---|---|---|
| $50,000 | $165,000 | $1,100/mo | $16,500 |
| $60,000 | $200,000 | $1,320/mo | $20,000 |
| $70,000 | $235,000 | $1,540/mo | $23,500 |
| $80,000 | $270,000 | $1,760/mo | $27,000 |
| $100,000 | $340,000 | $2,200/mo | $34,000 |
| $120,000 | $405,000 | $2,640/mo | $40,500 |
| $150,000 | $510,000 | $3,300/mo | $51,000 |
These are conservative estimates based on the 28% front-end DTI rule. Use the calculator below for your exact figures.
Calculate Your Number
FreeWhat Actually Determines Affordability
Four factors shape your number more than anything else.
Debt-to-Income Ratio
Your total monthly debts, car loans, student loans, credit cards, directly reduce how much mortgage you qualify for. Every $200/mo in existing debt cuts your buying power by roughly $35,000.
Down Payment
A larger down payment means a smaller loan, lower monthly payment, and no PMI above 20%. Even going from 5% to 10% down can save $100–$200/month on a $300,000 home.
Interest Rate
A 1% change in rate moves your monthly payment by about $60 per $100,000 borrowed. On a $300,000 loan, the difference between 6% and 7% is nearly $200/month over 30 years.
Credit Score
A score of 760+ qualifies you for the best rates. Dropping from 760 to 680 can cost you 0.5–1.0% in rate, which adds up to tens of thousands in extra interest over a 30-year loan.
Common Questions
On a $70,000 salary ($5,833/month gross), the 28% rule allows up to $1,633 in monthly housing costs. With a 10% down payment at a 6.5% rate on a 30-year mortgage, including estimated taxes and insurance, that translates to a home price of roughly $220,000–$240,000. Your actual number depends on your existing debts, credit score, local property taxes, and current rates.
The 28/36 rule is a guideline used by most lenders. It says your monthly housing costs (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total monthly debts (housing plus car loans, student loans, credit cards, etc.) should not exceed 36%. Meeting both limits puts you in the safest affordability range.
Yes. The Home Affordability Calculator includes property taxes (based on the rate you enter), homeowners insurance, and PMI if your down payment is below 20%. This gives you the true all-in monthly payment, not just the principal and interest portion.
The minimum depends on the loan type: 3% for conventional loans, 3.5% for FHA, and 0% for VA and USDA loans. However, putting down at least 10% reduces your monthly payment meaningfully, and 20% eliminates PMI entirely. Most first-time buyers in 2026 put down between 6% and 12%.
You have a few options: pay down existing debts before applying (even eliminating one car payment can add $25,000–$40,000 in buying power), increase your down payment, look at a lower price range, or wait and save to improve your credit score and qualify for a lower rate. Our Debt Payoff Calculator can help you map out a plan to reduce debts strategically.
Completely. All calculations run in your browser using JavaScript. No income figures, debt amounts, or any financial information you enter are sent to a server or stored in any database. Your inputs are saved only in your browser's local storage for convenience.