IncomeChecker.com

Mortgage Affordability Calculator

How much house can you afford? Enter your income, monthly debts, down payment, and rate to see the highest home price that fits the debt-to-income limits lenders use, with the full monthly payment including taxes and insurance.

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Before taxes, all borrowers combined

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Car, student loans, card minimums

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Home price you can afford
$336,610
Loan amount
$296,610
11.9% down
Monthly payment
$2,333.33
Set by the 28% housing limit
Principal and interest
$1,874.77
Taxes, insurance, and HOA
$458.56

How affordability is worked out

  • Front-end limit = gross monthly income × the housing ratio (28% for most conventional loans)
  • Back-end limit = gross monthly income × the total debt ratio (36%) − your other monthly debts
  • The lower of the two is the most you can spend on housing: principal, interest, property tax, insurance, and HOA dues
  • The home price is solved so that the payment on (price − down payment), plus taxes, insurance, and HOA, equals that limit

Example. With $100,000 a year in income, $500 a month in other debts, and $40,000 down at 6.5% for 30 years, the 28% housing limit is $2,333 a month and the 36% limit leaves $2,500, so the housing limit applies. With 1.1% property tax and $1,800 a year of insurance, you can afford about a $336,610 home with a $296,610 loan and a $1,874.77 principal and interest payment.

Things to keep in mind

  • Lenders use gross income before taxes. For a self-employed borrower, they use net business income averaged over two years, which can be much lower than deposits.
  • Other monthly debts are minimum payments that show on a credit report: car loans, student loans, credit cards, and personal loans. Rent, utilities, and phone bills are not counted.
  • FHA loans often allow 31% for housing and 43% overall, and some lenders go higher with strong credit or reserves. A higher limit raises the price you qualify for, not what is comfortable each month.
  • Down payments under 20% on a conventional loan usually add private mortgage insurance, which is not included here. Budget for closing costs of roughly 2% to 5% of the price on top of the down payment.

Frequently asked questions

How much house can I afford on my salary?

A common guide is a home price of about 3 to 4.5 times your annual income, but your debts, down payment, and interest rate move that a lot. This calculator applies the actual lender ratios to your numbers instead of a rule of thumb.

What is the 28/36 rule?

It says your housing payment should be no more than 28% of your gross monthly income, and all your debt payments together, including housing, no more than 36%. Many conventional lenders use limits close to these.

Does a bigger down payment let me afford more?

Yes. Every dollar of down payment adds a dollar to the price without raising the loan payment. It can also remove mortgage insurance at 20% down and get you a better rate.

How much does the interest rate change what I can afford?

A lot. At the same payment, each 1 percentage point increase in the rate cuts the loan amount by roughly 10% on a 30-year mortgage.

Is the result a pre-approval?

No. It is an estimate from the numbers you enter. A lender will verify income, check credit, and review assets before giving a pre-approval amount.

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Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.