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Worked example
$100,000 a year, $500/month of other debts, $40,000 down, at an example rate of 6.5% for 30 years:
| Gross monthly income | Annual income ÷ 12 | $8,333.33 |
|---|---|---|
| Housing limit (28%) | Monthly income × 28% | $2,333.33 |
| Total-debt limit (36%) minus debts | Monthly income × 36% − debts | $2,500.00 |
| Max housing payment | The smaller of the two | $2,333.33 |
| Max home price | Largest price whose PITI + PMI + HOA fits | $320,462 |
The 28% housing limit is the tighter one here, so it sets the maximum payment of $2,333.33.
How much house can I afford by salary?
| Salary | Comfortable (25/33) | Standard (28/36) | Monthly payment |
|---|---|---|---|
| $40,000 | $129,351 | $143,168 | $933.33 |
| $50,000 | $158,138 | $175,410 | $1,166.67 |
| $60,000 | $186,923 | $200,000 | $1,344.64 |
| $70,000 | $206,143 | $229,008 | $1,633.33 |
| $80,000 | $233,362 | $259,492 | $1,866.67 |
| $90,000 | $260,581 | $289,978 | $2,100.00 |
| $100,000 | $287,800 | $320,462 | $2,333.33 |
| $120,000 | $342,238 | $381,433 | $2,800.00 |
| $150,000 | $423,894 | $472,889 | $3,500.00 |
| $200,000 | $559,990 | $625,314 | $4,666.66 |
| $250,000 | $696,082 | $777,739 | $5,833.33 |
| $300,000 | $832,178 | $930,166 | $7,000.00 |
Assumes $40,000 down, no other debts, a 6.5% 30-year fixed rate, 1.1% property tax, $1,800/yr insurance and 0.5% PMI when under 20% down. Use the calculator above for your own numbers.
Assumptions
- Uses gross (pre-tax) income, the way lenders calculate debt-to-income ratios.
- Ratios are common guidelines; actual approval depends on credit score, loan program, reserves and the lender.
- Property tax scales with the home price; insurance and HOA are treated as fixed amounts.
- Fixed-rate loan; PMI applies when the down payment is under 20% of the price.
Frequently asked questions
How much house can I afford?+
A common guideline is the 28/36 rule: your housing payment (principal, interest, taxes, insurance, PMI and HOA) should be at most 28% of your gross monthly income, and all debts together at most 36%. This calculator finds the highest home price that fits both limits.
What is the 28/36 rule?+
It's a debt-to-income (DTI) guideline. The front-end ratio (housing ÷ gross income) stays under 28%, and the back-end ratio (housing + other debts ÷ gross income) stays under 36%. Many lenders allow higher ratios — some loan programs go to 43% or more — but higher ratios leave less room in your budget.
Should I use gross or take-home pay?+
Lenders use gross (pre-tax) income for DTI ratios, so this calculator does too. For your own comfort, also check that the payment fits your take-home budget alongside savings and other goals.
How do debts affect how much house I can afford?+
Monthly debt payments count against the 36% back-end limit. When they're large enough, they — not the housing limit — set your maximum. The calculator labels this as the “limiting factor”. Paying off a car loan or card balance can raise your price range noticeably.
Is this the amount I'll be approved for?+
No — it's an estimate. Actual approval depends on your credit score, loan program (conventional, FHA, VA, USDA), cash reserves, and the lender's own rules. Use it to plan, then get pre-approved for a firm number.
Calculator version 1.0.0. Results are estimates for educational purposes and are not a loan offer or financial advice.