House Affordability Calculator
Answer the big question — how much house can I afford? — using the same 28/36 debt-to-income guideline lenders use, with taxes, insurance, and PMI included.
How affordability is calculated: the 28/36 rule
Lenders judge affordability with two debt-to-income (DTI) ratios:
Back-end: (housing + all debts) ÷ gross monthly income ≤ 36%
Your monthly housing budget is whichever limit is lower. The calculator then works backward from that budget — subtracting property taxes, insurance, and PMI — to find the largest home price whose payment fits.
Income $96,000/yr ($8,000/mo) · debts $500/mo · down payment $40,000 · 30 yr @ 6.5% · tax 1.1%/yr · insurance $1,500/yr
Front-end limit: 8,000 × 28% = $2,240 · Back-end limit: 8,000 × 36% − 500 = $2,380 → budget is $2,240
Working backward (including PMI, since $40,000 is under 20% down) gives a home price of roughly $310,000.
Home price by salary (quick reference)
Assuming $400/mo other debts, 10% down, 30-year loan at 6.5%, 1.1% property tax — your numbers will vary:
| Annual income | Monthly budget (28%) | Approx. home price |
|---|---|---|
| $50,000 | $1,167 | ≈ $150,000 |
| $75,000 | $1,750 | ≈ $230,000 |
| $100,000 | $2,333 | ≈ $310,000 |
| $125,000 | $2,917 | ≈ $390,000 |
| $150,000 | $3,500 | ≈ $470,000 |
Approved amount vs. comfortable amount
Lenders will often approve more than the 28/36 rule suggests — FHA loans can reach a 43% back-end ratio, sometimes higher. But an approval is a ceiling, not a recommendation. A payment at the edge of qualification leaves little room for maintenance (budget ~1% of home value per year), rising taxes and insurance, or an income interruption. Run the numbers with our mortgage calculator for the specific homes you're considering, check your DTI ratio, and read our guide: How much house can I afford?
Frequently asked questions
How much house can I afford on my salary?
Guideline: housing up to 28% of gross monthly income and total debt up to 36%. On $96,000/yr with $500/mo debts and $40,000 down at 6.5%, that's roughly a $310,000 home.
What is the 28/36 rule?
Housing costs ≤ 28% of gross monthly income (front-end) and all debts including housing ≤ 36% (back-end). It's the classic benchmark lenders start from.
Does my down payment change how much house I can afford?
Yes — it adds directly to your price budget, and reaching 20% removes PMI, freeing more of your monthly budget for the home itself. See the down payment calculator.
Is the amount a lender approves the amount I should spend?
Not necessarily — approvals can run to 43–50% back-end DTI, which leaves little margin. Many planners suggest staying at or below 28/36 even if you qualify for more.
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Note: Estimates use standard DTI guidelines and simplified assumptions (0.5%/yr PMI under 20% down). Actual qualification depends on credit score, loan program, and lender overlays. Not financial advice. Last reviewed: July 2026.