House Affordability Calculator
Enter your income, debts, and down payment to find the maximum home price you can comfortably afford using the 28/36 DTI rule.
Mortgage Payment by Home Price & Rate (30-Year, 20% Down)
| Home Price | @ 6% | @ 7% | @ 8% |
|---|---|---|---|
| $200,000 | $959 | $1,064 | $1,174 |
| $300,000 | $1,439 | $1,596 | $1,761 |
| $400,000 | $1,919 | $2,129 | $2,348 |
| $500,000 | $2,398 | $2,661 | $2,935 |
| $700,000 | $3,357 | $3,725 | $4,109 |
Principal & interest only. Does not include property taxes, insurance, or PMI. Loan amount = 80% of home price.
Frequently Asked Questions
How much house can I afford on my salary?
A common rule of thumb is that your home should cost no more than 2.5–3× your annual gross income. On a $100,000 salary, that is $250,000–$300,000. However, the more accurate method uses DTI ratios: your total monthly housing costs (PITI — principal, interest, taxes, insurance) should not exceed 28% of gross monthly income (front-end DTI), and your total monthly debt payments (housing + all other debts) should not exceed 36% of gross monthly income (back-end DTI). Lenders typically require DTI below 43% to qualify for a conventional mortgage.
What is the 28/36 rule?
The 28/36 rule is a classic personal finance guideline for home affordability: (1) Front-end ratio: housing costs (mortgage P&I + property taxes + homeowner's insurance + HOA) should be ≤28% of gross monthly income. (2) Back-end ratio: all monthly debt payments (housing + car loans + student loans + credit cards + other debts) should be ≤36% of gross monthly income. Most conventional lenders use a relaxed version (up to 43% back-end for qualified mortgages). FHA loans allow up to 31% front-end and 43% back-end. VA loans have more flexibility.
How much should I put as a down payment?
Minimum down payment requirements: Conventional loan: 3–5% (PMI required below 20%). FHA loan: 3.5% (with 580+ credit score). VA loan: 0% (eligible veterans/service members). USDA loan: 0% (rural areas). Putting 20% down eliminates Private Mortgage Insurance (PMI), which typically costs 0.5–1.5% of the loan per year. On a $400,000 loan, that is $2,000–$6,000/year ($167–$500/month) in extra cost. The average first-time homebuyer down payment is 6–8%; repeat buyers average 16–17%.
What other costs should I budget for when buying a home?
Beyond the purchase price and down payment: Closing costs: 2–5% of the loan amount ($8,000–$20,000 on a $400K loan). These include origination fees, appraisal, title insurance, attorney fees, and prepaid items (property tax and insurance escrow). Moving costs: $1,000–$5,000 local, $5,000–$10,000+ long-distance. Immediate repairs/upgrades: budget 1–3% of purchase price. Ongoing maintenance: plan for 1–2% of home value annually ($4,000–$8,000/year on a $400K home). Home inspection: $400–$700 (always worth it).
How does the interest rate affect affordability?
Interest rates have a dramatic effect on affordability. On a $400,000 30-year mortgage: At 4%: $1,910/month (P&I). At 6%: $2,398/month (+$488/month). At 7%: $2,661/month (+$751/month). At 8%: $2,935/month (+$1,025/month). A 1% rate increase reduces purchasing power by approximately 10–11%. This is why affordability declined sharply in 2022–2024 as rates rose from 3% to 7%+. Use this calculator to see exactly how rate changes impact your affordable price range.