Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Adjust the comfort slider to see conservative through aggressive scenarios.
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Your annual property tax bill. National average is ~1.1% of home value.
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| Closing Costs (~3%) | — |
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| Conserv. | Moderate | Aggress. | |
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| Tax | — | — | — |
| Insurance | — | — | — |
| PMI | — | — | — |
| Total /mo | — | — | — |
| Conserv. | Moderate | Aggress. | |
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| Down Payment | — | — | — |
| Closing (~3%) | — | — | — |
| Total Cash | — | — | — |
How the Home Affordability Calculator Works #
This calculator determines how much house you can afford by working backward from your income. Rather than starting with a home price and checking whether you qualify, it starts with what you earn, subtracts your existing debts, and calculates the maximum purchase price that keeps your monthly payment within standard lending guidelines.
The key metric is your debt-to-income ratio (DTI) — the percentage of your gross monthly income consumed by debt payments. Lenders evaluate two DTI numbers: the front-end ratio (housing costs only) and the back-end ratio (housing plus all other debts). The widely cited "28/36 rule" means housing should stay below 28% and total debt below 36% of gross income, though many lenders now approve borrowers up to 43% or even 50% with strong compensating factors like excellent credit or substantial savings.
The calculator accounts for all housing cost components — principal and interest, property taxes, homeowner's insurance, PMI (if your down payment is under 20%), and HOA fees — plus your existing monthly debts. Use the comfort slider to explore the full range from conservative (28/36 DTI) to aggressive (50% back-end DTI) to find the budget that fits your risk tolerance and financial goals.
How Much House Can I Afford by Salary #
The table below shows estimated maximum home prices at three comfort levels, assuming $500/month in existing debts, 20% down payment, 6.49% interest rate, 1.2% property tax, and $1,500/year insurance.
| Annual Salary | Conservative | Moderate | Aggressive |
|---|---|---|---|
| $50,000 | $144,547 | $192,730 | $240,912 |
| $60,000 | $194,106 | $235,405 | $309,744 |
| $80,000 | $287,718 | $320,757 | $447,408 |
| $100,000 | $364,809 | $406,109 | $585,072 |
| $120,000 | $441,901 | $491,460 | $722,736 |
| $150,000 | $557,539 | $619,488 | $929,232 |
| $200,000 | $750,269 | $832,867 | $1,273,392 |
How much house can I afford on $50,000 a year?
On a $50,000 salary with $500 in monthly debts, a conservative budget (36% DTI) allows roughly $144,547 while a more aggressive approach could stretch to $240,912. At this income level, keeping debts low is critical — every $100 in monthly debt reduces your buying power by approximately $15,000.
How much house can I afford on $60,000 a year?
Earning $60,000 per year with $500 in monthly debts puts your affordable range from $194,106 (conservative) to $309,744 (aggressive). The moderate estimate of $235,405 is a solid target that balances comfort with buying power.
How much house can I afford on $80,000 a year?
At $80,000 annually, your affordable range runs from approximately $287,718 (conservative) to $447,408 (aggressive). The moderate tier at $320,757 represents a comfortable middle ground where most financial advisors would feel confident about your budget.
How much house can I afford on $100,000 a year?
A six-figure salary opens the door to homes priced from $364,809 to $585,072. The moderate recommendation of $406,109 gives you room for unexpected expenses while still getting into a solid property in most markets. Reducing your existing debts before applying can push the conservative number significantly higher.
How much house can I afford on $120,000 a year?
At $120,000 per year, you can afford homes from $441,901 to $722,736. With the moderate estimate at $491,460, you have strong buying power in most metro areas. Paying off car loans or student debt before applying could add $30,000–$50,000 to your affordable price.
How much house can I afford on $150,000 a year?
At $150,000 per year, you can comfortably afford homes in the $557,539 to $929,232 range. Even the conservative estimate at $557,539 puts you in a strong position in most housing markets. With minimal existing debt, these numbers climb substantially.
How much house can I afford on $200,000 a year?
A $200,000 salary supports a home purchase from $750,269 (conservative) up to $1,273,392 (aggressive). At this income level, the size of your down payment and local property tax rates become the primary factors that shift your affordable price range.
Monthly Payment by Home Price #
The table below shows the estimated monthly payment at each price point, assuming 20% down, 6.49% rate, 1.2% property tax, and $1,500/year insurance.
| Home Price | Monthly Payment | P&I | Tax | Insurance |
|---|---|---|---|---|
| $200,000 | $1,336 | $1,011 | $200 | $125 |
| $300,000 | $1,941 | $1,516 | $300 | $125 |
| $400,000 | $2,546 | $2,021 | $400 | $125 |
| $500,000 | $3,152 | $2,527 | $500 | $125 |
| $750,000 | $4,665 | $3,790 | $750 | $125 |
What is the monthly payment on a $200,000 house?
With 20% down at 6.49%, a $200,000 home costs approximately $1,336 per month including taxes and insurance. The P&I portion is $1,011, with $200 for property tax and $125 for insurance.
What is the monthly payment on a $300,000 house?
A $300,000 home with 20% down runs approximately $1,941 per month. The principal and interest payment of $1,516 makes up the bulk of the cost, with taxes and insurance adding roughly $425 combined.
What is the monthly payment on a $400,000 house?
At $400,000 with 20% down, expect a total monthly payment around $2,546. This breaks down to $2,021 in P&I, $400 in property tax, and $125 in homeowner's insurance. No PMI is required at 20% down.
What is the monthly payment on a $500,000 house?
A half-million dollar home with standard assumptions costs about $3,152 per month. With $2,527 going toward principal and interest, you would need a gross monthly income of at least $11,256 to satisfy the 28% front-end DTI guideline.
What is the monthly payment on a $750,000 house?
At $750,000 with 20% down, the total monthly payment reaches approximately $4,665. This requires substantial income — roughly $16,661 per month or $199,930 annually at the 28% front-end DTI guideline.
What Salary Do I Need to Buy a House? #
To find the minimum salary needed for a given home price, work backward from the monthly payment. At 6.49% interest with 20% down, 1.2% property tax, and $1,500/year insurance, here are the approximate annual salaries required under the 28% front-end DTI guideline:
- $200,000 home: Minimum salary of roughly $50,000–$55,000. Your total housing payment would be around $1,200/month, which stays comfortably under 28% of gross income at $55k.
- $300,000 home: You need approximately $70,000–$80,000 per year. The monthly payment runs about $1,700–$1,800, requiring at least $6,400/month gross to stay within guidelines.
- $400,000 home: Plan on a salary of $95,000–$105,000. The total monthly payment of roughly $2,400 requires $8,500+/month gross to satisfy the 28% rule.
- $500,000 home: You'll need approximately $120,000–$130,000 annually. Monthly housing costs push above $3,000, demanding substantial income.
- $750,000 home: A salary of $175,000–$195,000 is typically required. At this price point, your down payment alone ($150,000 at 20%) is a significant factor.
These estimates assume minimal existing debt. Car payments, student loans, and credit card minimums all reduce how much you can allocate to housing — even if your front-end ratio is fine, lenders will check the back-end (total debt) ratio too. Use the calculator above with your actual debts entered for a personalized number.
Tips to Afford More Home #
- Pay down existing debt first. Every $100 in monthly debt you eliminate adds roughly $15,000–$18,000 to your affordable home price. Target credit cards and auto loans with the highest minimums first.
- Improve your credit score. A higher credit score qualifies you for lower interest rates. Dropping from 6.5% to 6.0% on a $320,000 loan saves about $120 per month — or lets you afford a $20,000 more expensive home at the same monthly payment.
- Consider a longer loan term. A 30-year mortgage has lower monthly payments than a 15-year or 20-year term, which means you can qualify for a higher purchase price. The tradeoff is more total interest paid over the life of the loan.
- Explore low-down-payment options. FHA loans require just 3.5% down, and VA and USDA loans offer 0% down for eligible buyers. A smaller down payment means less cash needed upfront, though it adds PMI or mortgage insurance to your monthly costs.
- Add a co-borrower. A spouse, partner, or family member who co-signs the mortgage adds their income to the qualification calculation, which can dramatically increase your approved loan amount. Both credit histories will be evaluated.
Frequently Asked Questions #
What is the 28/36 rule for mortgages?
The 28/36 rule is a lending guideline that says your monthly housing costs should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments should not exceed 36% of gross income (back-end ratio). These thresholds represent the conservative tier. Many lenders approve borrowers beyond these limits — FHA allows 31/43, and some conventional programs go up to 50% back-end DTI with compensating factors.
How much house can I afford on $100k salary?
On a $100,000 annual salary with $500/month in existing debts and 20% down, you can afford roughly $364,809 (conservative, 36% DTI) to $585,072 (aggressive, 50% DTI). The moderate recommendation of $406,109 at 43% DTI is a reasonable middle ground. Your actual number depends on your interest rate, debts, property taxes, and insurance costs.
What monthly payment can I afford?
A common guideline is to keep your total housing payment below 28% of gross monthly income. For example, on a $75,000 salary ($6,250/month), aim for a housing payment under $1,750. Your existing debts also matter — total debt payments should stay below 36–43% of gross income. Use the comfort slider above to find the monthly payment that matches your risk tolerance.
How does DTI affect home buying?
Your debt-to-income ratio is one of the most important factors lenders evaluate when approving a mortgage. A lower DTI means more of your income is available for housing costs, which increases the price you can afford. High existing debts — car payments, student loans, credit card minimums — directly reduce how much house you can qualify for. Paying down debts before applying is one of the fastest ways to increase your buying power.
What salary do I need to buy a $400,000 house?
At current rates with 20% down and minimal existing debt, you need a gross annual income of roughly $95,000–$105,000 to comfortably afford a $400,000 home under the 28% front-end DTI guideline. With a smaller down payment (adding PMI) or significant existing debts, you may need $110,000–$120,000+. Enter your specific numbers in the calculator above for a precise answer.
How much cash do I need to buy a house?
You need cash for the down payment plus closing costs. Down payment requirements vary by loan type: 0% for VA and USDA, 3–3.5% for conventional and FHA, or 20% to avoid PMI. Closing costs typically add 2–5% of the purchase price. On a $400,000 home with 20% down, expect roughly $80,000 for the down payment plus $12,000 in closing costs — about $92,000 total.