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How Much House Can I Afford?

Answering how much house can I afford starts with one honest monthly number. This free US mortgage affordability calculator turns your gross income, existing debts, down payment and interest rate into a maximum home price, a maximum loan amount and a monthly payment that already includes property tax, insurance and HOA dues.

Annual gross income ($)

Monthly debt payments ($)

Down payment ($)

Interest rate (%)

Loan term (years)

Debt-to-income limit

Annual property tax (%)

Annual homeowners insurance ($)

Monthly HOA dues ($)

What is a mortgage affordability calculator?

A mortgage affordability calculator works backwards from your income instead of forwards from a listing price. You tell it what you earn and what you already owe each month, it applies the debt-to-income limit you choose, and it reports the largest home price and loan amount that budget supports. Because it also subtracts property tax, homeowners insurance and HOA dues, the mortgage it allows you is genuinely what is left for principal and interest — not the whole payment.

Lenders do this same arithmetic when they pre-approve you: they add up your gross monthly income, apply a housing and total-debt ceiling, and subtract the recurring costs of owning. The difference is that this tool runs in your browser, changes as fast as you type, and lets you test the conservative 28% ratio, the standard 36% ratio or a lender's 43% stretch limit side by side before you talk to anyone. Use the result to set your real search price, so you only tour homes you can actually carry.

How to use

Enter your annual gross income — the figure before tax, since lenders qualify on gross, not take-home pay.
Add the monthly debt payments you already carry (car loans, student loans, minimum card payments) — they are subtracted from your debt-to-income budget, so the more you owe each month the less house the limit allows.
Enter your down payment in dollars and the interest rate you expect from a lender quote.
Pick a loan term and a debt-to-income limit. Start with 28% for a comfortable budget and compare against 36%.
Fill in local property tax as a percentage of value, annual insurance and any monthly HOA dues.
Click Calculate What I Can Afford and read the maximum home price, the maximum loan and the payment breakdown, then copy the result if you want to keep it.

Example

Take the defaults: $100,000 of gross income, $500 a month in existing debts, $40,000 down, a 6.5% rate, a 30-year term, 1.1% property tax, $1,500 a year for insurance and no HOA, at the 28% limit. A 28% ceiling allows $2,333 a month for all debt, so after your $500 of existing payments and $125 of insurance about $1,708 is left for principal, interest and property tax. Solving for price at 6.5% over 30 years gives a maximum home price near $270,978, a maximum loan near $230,978 and a monthly payment of about $1,833 ($1,460 principal and interest, $248 property tax, $125 insurance). Switch the limit to 36% and the same income, debts and down payment reach about $363,093 — the ceiling you accept changes the house you can buy far more than most buyers expect.

Who is this mortgage affordability calculator for?

Anyone financing a home in the US can use it, but four groups get the most out of it.

First-time buyers: set a search price from your own income instead of from what a lender says you could be approved for, so the first year of ownership is not a squeeze.
Repeat buyers and movers: check whether your next house still fits after the old mortgage, a bridge period and higher taxes.
Buyers in high property-tax states: raise the tax rate to 2% or more and watch the maximum price fall — in New Jersey or Illinois the tax alone can cost you five figures of buying power.
Buyers weighing a 15-year against a 30-year term: compare both terms to see how much price a shorter payoff costs you each month.

How much house can I afford at different incomes?

The table below uses $20,000 down, a 6.5% rate, a 30-year term, 1.1% property tax, $1,500 a year of insurance and no other monthly debts, and shows what each income supports at the conservative and standard debt-to-income limits. The monthly payment column is the full housing cost, including tax and insurance.

Annual income	DTI limit	Maximum home price	Maximum loan	Monthly payment
$60,000	28%	$193,636	$173,636	$1,400
$60,000	36%	$248,905	$228,905	$1,800
$100,000	28%	$322,597	$302,597	$2,333
$100,000	36%	$414,712	$394,712	$3,000
$150,000	28%	$483,798	$463,798	$3,500
$150,000	36%	$621,970	$601,970	$4,500

Rounded to the nearest dollar. Payments are principal, interest, tax and insurance only; PMI, closing costs and HOA dues are excluded.

Common use cases

Pre-approval prep: walk into a lender conversation already knowing your number, so you are negotiating rather than reacting.
Comparing two markets: run the same income with a 1.1% tax rate and a 2.2% rate to see how much local tax costs in price.
Testing a term change: check what the house you want looks like on a 15-year payment before you commit to the shorter loan.
Paying down debt first: clear a car loan, re-run the calculator and see how much of your buying power the payment was consuming.
Setting a down payment target: find the price you want, then work out the down payment that gets you there at your income.

Pro tips

Know the 28/36 rule: housing at or below 28% of gross monthly income and all debt at or below 36%. Try 28% first and treat 36% as an upper bound.
Lenders add the taxes, insurance and HOA: your principal-and-interest figure is never the payment. Escrow and dues are part of the ratio, which is why a low-tax state can afford more house.
A bigger down payment raises your maximum price: with no other monthly debts, $100,000 of income at a 28% limit reaches $322,597 with $20,000 down and $374,998 with $80,000 down.
Rates matter as much as income: dropping from 7.5% to 5.5% lifts the same buyer from $314,588 to $369,312 with no other monthly debts.
This is a starting point, not an offer: lenders verify income, assets, credit and appraised value, and their final number can be lower than your estimate.

FAQ

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

With $40,000 down, a 6.5% rate, a 30-year term, 1.1% property tax, $1,500 insurance and no other monthly debts, this calculator puts your maximum price near $340,064 at a 28% DTI limit and near $432,179 at 36%.

What is the 28/36 rule?

The 28/36 rule says housing costs should stay at or below 28% of gross monthly income and total debt payments at or below 36%. This tool applies the housing ratio you select.

How much mortgage can I afford?

Your affordable mortgage is your income-based housing budget divided by the loan factor for your rate and term. With no other monthly debts, $100,000 of income at a 28% limit supports a loan of roughly $300,064.

Does this mortgage affordability calculator include property tax and insurance?

Yes. Property tax, homeowners insurance and HOA dues are subtracted from your monthly budget first, so the mortgage you can carry is what remains, not the full DTI amount.

Should I use the 28% or 36% DTI limit?

Use 28% for a conservative budget that leaves room for savings and repairs, 36% if you are comfortable with a tighter payment, and 43% only to see a lender's usual stretch ceiling.

Does a bigger down payment let me afford a more expensive house?

Yes. With no other monthly debts, at $100,000 income and a 28% limit, $20,000 down supports about $322,597 while $80,000 down supports about $374,998, because the down payment is part of the purchase price.

Is a 15-year or 30-year mortgage better for affordability?

A 30-year term carries the lowest payment per dollar borrowed, so it stretches your buying power. A 15-year term saves interest but cuts the price you can reach: with no other monthly debts, about $265,563 versus $340,064 on $100,000 of income.

How much does a higher interest rate reduce what I can afford?

Rates move affordability quickly. With no other monthly debts, at $100,000 income and a 28% limit, 5.5% supports about $369,312, 6.5% about $340,064 and 7.5% about $314,588.

What debt-to-income ratio do lenders actually use?

Many conventional lenders look for a total debt-to-income ratio at or below 36%, with 43% often the maximum for a qualified mortgage. FHA and other programs can vary.

Does my credit score change what I can afford?

Yes, indirectly. A lower score usually means a higher interest rate, and a higher rate lowers the loan amount your monthly budget supports, even when your income is unchanged.

Can the estimate cover a home with no down payment?

You can enter a $0 down payment, but the result assumes financing of the full price, and most programs that allow it add private mortgage insurance, which this estimate does not include.

Is this mortgage affordability calculator free?

Yes. It runs entirely in your browser, needs no sign-up and uploads nothing, so your income and debt figures stay on your own device.