How much house can I afford?
The number a lender approves and the number you can live with are different. This works out both, with property tax, insurance, HOA and mortgage insurance already inside the payment.
Home affordability calculator
What each income supports
| Gross income | Housing budget | Home price | Loan |
|---|---|---|---|
| $50,000 | $1,167 | $173,000 | $138,400 |
| $75,000 | $1,750 | $270,700 | $216,600 |
| $100,000 | $2,333 | $368,300 | $294,600 |
| $125,000 | $2,917 | $466,000 | $372,800 |
| $150,000 | $3,500 | $563,600 | $450,900 |
| $200,000 | $4,667 | $758,900 | $607,200 |
Two numbers, and only one of them is your budget
A lender asks whether you are likely to repay. You are asking whether the payment leaves a life. Those questions produce different answers, and the gap between them is where people end up house-poor: approved at the top of the range, with nothing left for a new roof or a bad month.
The 28/36 rule is the old, conservative starting point. Housing — principal, interest, property tax, insurance and HOA — at or below 28 percent of gross monthly income, and every debt payment together at or below 36 percent. Most conventional loans now allow 43 to 50 percent on the back end, which is why a bank will often approve you for a house this calculator calls unaffordable.
Why the debt line usually decides
The two limits are not equal partners. On $100,000 of income, the 28 percent rule allows $2,333 a month for housing but the 36 percent rule allows only $3,000 total — so $500 of car and student payments pulls the housing budget down to $2,500, and the housing limit stops binding entirely.
That asymmetry is why paying off a car before house-hunting is worth more than shopping for a slightly better rate. Every $100 of monthly debt removes roughly $14,000 of buying power at 6.5 percent.
What the payment is missing
Everything a lender counts is in this calculator. Everything a lender ignores is not: maintenance at 1 to 2 percent of value per year, utilities that run above rental levels, and the fact that property taxes and insurance rise while a fixed-rate principal and interest payment does not.
On a $400,000 house, the maintenance reserve alone is $4,000 to $8,000 a year — roughly what a car payment costs. Budget it before you pick a price, not after.
Frequently asked questions
How much house can I afford on a $100,000 salary?
With no other debt, about $368,000 at 6.5 percent, 20 percent down, 1.1 percent property tax and $1,600 insurance. Carrying $500 of monthly debt drops that to roughly $298,000.
What is the 28/36 rule?
Housing at or below 28 percent of gross monthly income, all debt at or below 36 percent. Whichever limit binds first sets your range.
Why can a lender approve more?
Many conventional loans allow 43 to 50 percent back-end. The lender is pricing default risk, not your comfort.
Should property tax and insurance be included?
Yes — they are escrowed with the payment and counted in the ratio. Between a 0.5 percent and a 2.0 percent tax rate, the difference on a $400,000 home is about $500 a month.
Does this include maintenance?
No. Budget 1 to 2 percent of value per year separately. It sits outside the debt ratio, which is why approved maximums feel generous until the first repair.
This is a budgeting estimate, not a loan offer or a pre-approval. Lenders apply their own underwriting, and property tax, insurance and HOA figures vary by county and change over time. Confirm any number with a loan officer before making an offer.