How much house can I afford?
Lenders commonly cap your housing payment at 28% of gross monthly income and total debt payments at 36%. On $100,000 a year with $500 in monthly debts and $60,000 down at 6.5%, that works out to about $2,333 a month in PITI, or a home price near $341,800.
- ✅ Free
- 🔒 No sign-up
- 📱 Works on mobile
- ⚡ Instant results
Estimate only, not financial advice. Lenders set their own limits and may approve higher or lower debt-to-income ratios based on credit, reserves and loan type.
🔒 Everything runs in your browser. Your data and files never leave your device.
The 28/36 rule
Underwriters compare your monthly obligations with your gross (pre-tax) income. Two ratios matter:
- Front-end ratio: housing payment ÷ gross monthly income, ideally 28% or less.
- Back-end ratio: housing payment plus all other monthly debts ÷ gross monthly income, ideally 36% or less.
max payment = the lower of (income × 28%) and (income × 36% − other debts)
The housing payment here is PITI (principal, interest, property tax, homeowners insurance) plus PMI and HOA dues. Because tax and PMI depend on the price, the calculator searches for the highest price whose full payment fits under your limit.
How income and debts change your budget
All rows use a 30-year loan at 6.5%, 1% property tax, $1,800 yearly insurance, 0.5% PMI and $60,000 down.
| Annual income | Monthly debts | Max payment | Home price |
|---|---|---|---|
| $60,000 | $1,200 | $600 | $68,339 |
| $100,000 | $500 | $2,333 | $341,789 |
A few hundred dollars of monthly debt can cut your budget sharply, which is why paying off a car loan before applying often helps more than saving another month of down payment.
Higher limits and other loan types
The 28/36 rule is a conservative guideline. FHA loans often allow ratios near 31/43, and some conventional loans approve a back-end ratio up to 45% or more with strong credit and cash reserves. Remember that a payment you are approved for is not always a payment that feels comfortable: factor in maintenance, which often runs about 1% of the home value per year.
3 real-life examples
$100,000 income, $500 monthly debts, $60,000 down
Gross monthly income: $8,333. The 28% limit allows $2,333 and the 36% limit allows $2,500 after debts, so the front-end rule binds. At 6.5% for 30 years the home price tops out near $341,789 (loan $281,789, PITI plus PMI $2,333).
$60,000 income, $1,200 monthly debts, $10,000 down
Gross monthly income: $5,000. The 28% limit would allow $1,400, but 36% minus $1,200 of debt leaves only $600. The affordable price falls to about $68,339. Paying off $400 a month of debt would lift that limit to $1,000.
$150,000 income, no debts, $100,000 down
Gross monthly income: $12,500, so 28% allows $3,500. With a 6.5% rate over 30 years, the maximum home price is about $531,489, a loan of $431,489.