How much house can I afford?

A common guideline is that your monthly housing costs — principal, interest, property taxes, insurance, PMI, and HOA — should not exceed 28% of your gross monthly income (the front-end DTI), and all monthly debt payments combined should not exceed 36% (the back-end DTI). At a $85,000 annual income with $700 in monthly debts and a 20% down payment, most buyers can afford a home in the $275,000–$340,000 range depending on interest rate and location.

What is the 28/36 rule for home affordability?

The 28/36 rule is the standard guideline most conventional lenders use. It states that your monthly housing costs (principal, interest, taxes, insurance, PMI, and HOA) should not exceed 28% of your gross monthly income (front-end DTI), and your total monthly debt payments — including housing — should not exceed 36% (back-end DTI). FHA loans use a 31/43 limit instead. The calculator applies both ratios and returns the lower of the two as your recommended maximum home price.

What is the difference between front-end and back-end DTI?

Front-end DTI (housing ratio) measures your monthly housing costs as a percentage of gross monthly income — the standard limit is 28% for conventional loans and 31% for FHA. Back-end DTI (total debt ratio) measures all monthly debt payments (housing plus car loans, student loans, credit cards, etc.) as a percentage of income — the limit is 36% for conventional and 43% for FHA. If you carry significant debt, back-end DTI is usually the binding constraint on how much house you can afford.

How much house can I afford on a $80,000 salary?

On an $80,000 annual salary ($6,667/month gross), following the 28% front-end DTI rule, your maximum monthly housing cost is about $1,867. At a 6.75% interest rate with 20% down, that supports a home price of roughly $290,000–$320,000 — depending on property taxes, insurance, and HOA in your area. With $500/month in existing debts, the 36% back-end DTI limit reduces that to approximately $265,000–$290,000.

How much house can I afford on a $100,000 salary?

On a $100,000 annual salary ($8,333/month gross), the 28% housing DTI limit allows roughly $2,333/month for housing costs. At a 6.75% rate with 20% down, this supports a home price in the $360,000–$400,000 range. With $700/month in existing debts, the 36% back-end DTI cap reduces the recommended maximum to approximately $330,000–$365,000 depending on local taxes and insurance.

When do I have to pay PMI on a home?

Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price. PMI typically costs 0.3%–1.5% of the loan amount annually, paid monthly. The calculator automatically includes estimated PMI in your monthly payment when your down payment falls below 20%. PMI can be removed once you reach 20% equity — either through payments, appreciation, or a new appraisal.

Does HOA affect how much house I can afford?

Yes. HOA fees count toward your front-end housing DTI ratio because lenders include them in your total monthly housing cost. A $300/month HOA fee on a $100,000 salary effectively reduces your maximum home price by approximately $50,000–$70,000. The Full Analysis tab of this calculator lets you enter your HOA fees to see the precise impact on your affordability.

How does debt affect home affordability?

Every dollar of monthly debt payment reduces your maximum home price by roughly $100–$130 (depending on interest rate and loan term). For example, $400/month in car and student loan payments can reduce your maximum affordable home price by $50,000 or more. This is why many financial advisors recommend paying down high-interest debt before applying for a mortgage. Use the debt fields in the calculator to model what happens if you pay off a specific debt before buying.

How much house can I afford on my salary?

A widely used guideline is that your total monthly housing costs (mortgage, taxes, insurance, HOA) should not exceed 28% of your gross monthly income, and total debt payments should stay below 36%. For example, on a $100,000 salary, that suggests a maximum housing cost of roughly $2,333 per month. However, lenders may approve higher ratios — what they approve and what you can comfortably afford are often different numbers.

How much should I put down on a house?

Putting down 20% avoids Private Mortgage Insurance (PMI) and gives you the most equity from day one. However, many loan programs allow 3–5% down (conventional), 3.5% (FHA), or even 0% (VA and USDA). A smaller down payment gets you into a home sooner but increases your monthly payment and total interest cost. This calculator shows the impact of different down payment amounts.

What is included in a monthly mortgage payment?

Most mortgage payments include four components, known as PITI: Principal (paying down the loan balance), Interest (the cost of borrowing), property Taxes (typically escrowed monthly), and homeowners Insurance (also escrowed). If your down payment is below 20%, you'll also pay Private Mortgage Insurance (PMI). HOA dues, if applicable, are an additional cost.

Home & Mortgage

How Much House Can You Afford?

Find your maximum home price using the 28/36 rule — the same front-end and back-end DTI ratios mortgage lenders actually use. Includes conservative, moderate, and stretch scenarios with a full monthly cost breakdown.

Current Monthly Payment

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New Monthly Payment

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Est. Interest Saved

—

Break-Even

—

Your Finances

Annual Gross Income

Monthly Debt Payments

Car loans, student loans, credit cards, etc.

Loan Details

Down Payment Amount

Interest Rate

Loan Term

Assumes 1.02% property tax, $1,500/yr insurance, 28/36 DTI limits. Use the Full Analysis tab to customize these.

Estimated Maximum Home Price

$314,000

Est. monthly payment

$2,103/mo

19% down — includes PMI

Loan Amount

$254,000

Down Payment

$60,000

(19.1%)

Housing DTI

29.7%

target: 28%

Monthly Payment Breakdown

Shows how your estimated monthly housing payment breaks down across principal & interest, property taxes, insurance, and PMI (if applicable).

Income

Primary Income

Other Income (bonuses, rental, etc.)

Monthly Debts

Car Payment

Student Loans

Credit Cards

Other Debt

Loan & Property Details

Down Payment

Interest Rate

Loan Term

Property Tax Rate

Home Insurance/yr

HOA/month

PMI Rate

Customize DTI Limits

Housing DTI Target28%

Total DTI Target36%

Estimated Maximum Home Price

$281,000

Based on 28% housing / 36% total DTI limits

Est. monthly payment

$1,847/mo

Debt-to-Income Ratios

Housing DTI(housing costs only)

26.1%

0%Target: 28%50%

Total DTI(all debt payments)

36.0%

0%Target: 36%50%

Most conventional lenders require ≤28% housing DTI and ≤36% total DTI. FHA loans allow up to 31%/43%.

Price Scenarios

Conservative

$240,000

Monthly$1,599

Housing DTI22.6%

Total DTI32.5%

Moderate

$281,000

Monthly$1,847

Housing DTI26.1%

Total DTI36.0%

Stretch

$320,000

Monthly$2,082

Housing DTI29.4%

Total DTI39.3%

Monthly Payment Breakdown

Total estimated monthly housing cost: $1,847. Principal & interest based on a 30-year term at 6.75%.

Detailed Breakdown

Item	Amount
Home Price	$281,000
Down Payment (20.0%)	$56,200
Loan Amount	$224,800
Monthly Costs
Principal & Interest	$1,458
Property Tax	$239
Home Insurance	$150
Total Monthly Housing Cost	$1,847

About This Analysis

This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.

·Does not account for closing costs, moving expenses, or maintenance reserves.
·PMI estimate assumes standard private mortgage insurance; actual rates vary by lender and credit score.
·Property tax and insurance estimates may differ significantly by location.

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