Home Affordability Calculator

Find out how much house you can afford from your income, debts, down payment and rate.

Required, greater than 0. Up to 1,000,000,000 dollars a year.

Required. 0 is allowed. Up to 1,000,000 dollars a month.

Changing the unit re-reads the down payment you typed. It does not convert it.

Required. 0 is allowed. Dollars up to 1,000,000,000. Percent from 0 to 100.

Required yearly percent. 0 is allowed. Up to 100 percent.

Changing the term re-reads the rate you typed. It does not rewrite it.

Percent of the price per year. From 0 to 100.

Required dollars per year. 0 is allowed. Up to 1,000,000 dollars.

Optional dollars per month. Blank counts as 0. Up to 100,000 dollars.

Yearly percent of the loan. From 0 to 100. Applied only when the down payment is under 20%.

Percent of gross income. From 0 to 50.

Percent of gross income. From 0 to 50.

Results update as you type.

Results

Enter your numbers to see the results.

Estimates only. This isn't financial advice or a loan approval. If you put down less than 20%, add a PMI rate so your payment isn't understated. Your lender sets the actual rate.

Enter your income, monthly debts, down payment and interest rate to get a home price that fits your budget, with property tax, insurance and HOA dues already counted in the payment. By default it uses the 28/36 rule of thumb, and you can change the ratios to match your lender.

How to use it

  1. Enter your annual gross household income and your current monthly debt payments (car, student loans, card minimums and so on).
  2. Enter your down payment in dollars or as a percent.
  3. Enter the interest rate and pick a 30- or 15-year term.
  4. Check the property tax rate. The default is 1.1% of the price per year, but it varies widely by county, so look up your area's rate if you can. Add homeowners insurance per year and any HOA dues per month.
  5. If your down payment is under 20%, enter a PMI rate (private mortgage insurance) as a yearly percent of the loan. It's 0% by default and only applies when you put down less than 20%. Conventional PMI typically runs about 0.46% to 1.50% of the loan per year (Urban Institute, as cited by NerdWallet, Experian and Bankrate).
  6. Adjust the front-end and back-end ratios if you like. The default is 28/36, and the ratios can go as high as Fannie Mae's 50% automated underwriting maximum (labeled in the tool).
  7. Read your monthly housing budget, which ratio limits you, the maximum price, and the full payment breakdown. The sensitivity table shows how the price shifts if your rate or down payment changes.

How it works

Your monthly housing budget is the lower of 28% of your gross monthly income, or 36% minus your other debts. The calculator then solves for the price where the mortgage payment, property tax, insurance, HOA dues and any PMI add up to exactly that budget.

Property tax grows with the price, which is why changing the tax rate moves the result.

Worked examples

$100,000 income, $500 in debts, $40,000 down, 6.5% for 30 years,

1.1% tax and $1,800 a year insurance, with PMI left at 0%. 28% of $8,333.33 is $2,333.33, and 36% minus debts is $2,500, so the front-end limit wins: $2,333.33 a month. The maximum price is $336,609.61, a $296,609.61 loan with $1,874.77 in principal and interest, $308.56 in tax and $150 in insurance, which adds back up to exactly $2,333.33.

$60,000 income with $700 in debts, $10,000 down, 7% for 30 years,

1.0% tax, $1,500 insurance and PMI at 0%. 28% would allow $1,400, but 36% ($1,800) minus $700 in debts leaves just $1,100, so debts are the limit here. Maximum price: $139,123.75. Paying down that $700 would raise the budget straight away.

$150,000 income, no debts, $60,000 down, 6% for 15 years,

2.0% tax, $2,400 insurance, $150 HOA and PMI at 0%. Budget $3,500. Maximum price $361,823.76, with $2,546.96 in principal and interest. A shorter term and higher tax rate both pull the price down compared with a 30-year loan in a low-tax area.

The first example with PMI.

$40,000 down is only about 12% of the price, so add PMI at 0.50% a year. The maximum price drops to $320,462.88: a $280,462.88 loan with $1,772.72 in principal and interest, $293.76 in tax, $150 in insurance and $116.86 a month in PMI, which still adds up to $2,333.33. PMI costs you about $16,000 of buying power here.

Putting 20% or more down.

Same income and debts, but $80,000 down with a 0.50% PMI rate entered. $80,000 is 21.53% of the resulting price, so PMI isn't applied. The maximum price is $371,543.30, with $1,842.75 in principal and interest.

Rate and down payment

Based on the first example ($100,000 income, 28/36, 30 years, 1.1% tax, $1,800 insurance, PMI 0%).

Sample prices from the first example
Rate \ Down payment$30,000$40,000$50,000
5.5%$356,911$365,521$374,131
6.5%$327,876$336,610$345,343
7.5%$302,586$311,427$320,268

In this example a one-point change in the rate moves the price by about $25,000 to $29,000, roughly three times what an extra $10,000 down does.

Price by income

Same assumptions as the first example ($500 debts, $40,000 down, 6.5% for 30 years, 1.1% tax, $1,800 insurance, PMI 0%, 28/36).

Sample prices by annual income
Annual incomeMonthly budgetApproximate max price
$60,000$1,300 (debts limit)$193,832
$80,000$1,867$272,129
$100,000$2,333$336,610
$150,000$3,500$497,810
$200,000$4,667$659,011

Before you shop

FAQ

How much house can I afford with a $100k salary?

With $500 in monthly debts, $40,000 down and a 6.5% 30-year rate, about $336,600 using the 28/36 rule. Change any input to see your own figure.

What is the 28/36 rule?

A rule of thumb: spend no more than 28% of gross monthly income on housing and no more than 36% on all debts combined. It isn't a law, and many lenders allow higher.

How much house can I afford based on monthly payment?

The calculator starts from your income, but you can work from a payment instead. Adjust the ratios until the monthly budget matches the payment you're comfortable with. The price shown fits that payment with tax, insurance and HOA included.

How much house can I afford with a $60k salary?

With $500 in debts, $40,000 down and a 6.5% 30-year rate, about $193,800. Your debts set the limit at that income, so paying them down helps the most.

Does this include property tax and insurance?

Yes, both are built into the monthly payment, along with HOA dues. PMI is an optional input. Enter a rate and it's added whenever your down payment is under 20%.

How does my down payment affect what I can afford?

In the example above, each extra $10,000 down adds about $8,700 to the price. That's a bit less than $10,000, because a higher price also means more property tax. A lower interest rate usually moves the number more.

Can I use a higher DTI than 36%?

Yes. Raise the back-end ratio. Fannie Mae's automated underwriting allows up to 50%, but a higher ratio means a tighter monthly budget.