How Much House Can You Afford?
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Before taxes, combined if two borrowers
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Car loans, student loans, credit card minimums
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%
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MAX HOME PRICE
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MAX MONTHLY PAYMENT
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PITI + HOA limit
Front-end DTI (28% limit)
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Back-end DTI (36% limit)
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Gross Monthly Income
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28% Front-End Limit
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36% Back-End Limit
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Your Max Housing Pmt
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Est. Tax + Ins + HOA
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Max P&I Available
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Disclaimer: Results are estimates using the 28/36 qualification rule and do not constitute financial or lending advice. Actual qualification depends on credit score, loan type, lender overlays, and full underwriting. Consult a licensed mortgage professional for your specific situation.
How Much House Can You Afford?
The mortgage calculator above shows your monthly payment for a given home price. But the affordability question works in reverse: given your income and debts, what is the maximum home price you can qualify for? Two rules guide this calculation.
The 28/36 Rule
Lenders use the 28/36 rule as a standard baseline for qualification:
- Front-end ratio (28%): Your total housing payment (PITI + HOA) should not exceed 28% of gross monthly income.
- Back-end ratio (36%): All monthly debt payments (housing + car loans + student loans + credit card minimums) should not exceed 36% of gross monthly income.
Affordability by Salary — Quick Reference
| Annual Salary | Max PITI (28%) | Est. Max Purchase Price |
|---|---|---|
| $50,000 | $1,167/mo | ~$180,000–$210,000 |
| $60,000 | $1,400/mo | ~$220,000–$255,000 |
| $75,000 | $1,750/mo | ~$280,000–$320,000 |
| $80,000 | $1,867/mo | ~$300,000–$340,000 |
| $100,000 | $2,333/mo | ~$375,000–$430,000 |
| $120,000 | $2,800/mo | ~$450,000–$520,000 |
| $150,000 | $3,500/mo | ~$570,000–$650,000 |
Estimates assume 7% rate, 30-year term, 20% down, 1.1% tax, $1,500/yr insurance. Adjust using calculator above.
What Reduces Your Buying Power
- Existing debt: Every $500/month in car or student loan payments reduces your maximum home payment by $500 under the 36% back-end rule.
- Lower credit score: A score below 680 increases your interest rate, raising your monthly payment on the same purchase price.
- HOA fees: Lenders count HOA dues toward your front-end ratio — a $400/month HOA reduces your available mortgage payment by $400.
- High property taxes: Buying in a high-tax state significantly reduces how much home you can afford at the same income level.
DTI Limits by Loan Type
| Loan Type | Max Front-End DTI | Max Back-End DTI |
|---|---|---|
| Conventional (Fannie/Freddie) | 28% | 45% (up to 50% with strong compensating factors) |
| FHA | 31% | 43% (up to 57% in some cases) |
| VA | No limit | 41% (guideline, not hard limit) |
| USDA | 29% | 41% |
Affordability FAQ
On $80,000/year ($6,667/month), the 28% rule allows a maximum PITI of $1,867/month. At 7% / 30yr / 20% down with average taxes and insurance, that corresponds to approximately a $300,000–$330,000 purchase price. If you have existing debt payments, your available home budget decreases accordingly.
On $100,000/year ($8,333/month), 28% allows up to $2,333/month in housing costs. With 20% down at 7% / 30yr and typical taxes/insurance, this supports a purchase price of roughly $375,000–$430,000 depending on your specific location's property tax rate.
Most financial planners recommend targeting 25% or less of gross income for housing — more conservative than the 28% lender guideline. Buying at the maximum lender qualification leaves no buffer for job changes, unexpected repairs, or rising property taxes and insurance. A comfortable payment is one you can sustain even if your income drops 20%.