How much house can I afford? Affordability calculator
Enter your gross income, monthly debts and savings. We find the highest price that keeps housing within 28% of income and all debts within 36%.
How it's calculated
The 28/36 rule of thumb says your housing payment (principal, interest, taxes, insurance, HOA and PMI) should stay under 28% of your gross monthly income and all your debt payments under 36%. We take the lower of the two limits as your maximum housing payment, then solve for the price whose full payment equals it, given your down payment, rate, term, tax rate, insurance and HOA.
Lenders use their own limits. Fannie Mae's maximum total debt-to-income ratio is 36% for manually underwritten loans, up to 45% with strong credit and reserves, and up to 50% through its automated underwriting. FHA's manual underwriting benchmarks are 31% and 43%. Change the limits to see the difference — and remember closing costs need cash too.
Frequently asked questions
What is the 28/36 rule?
A common guideline: spend no more than 28% of gross monthly income on housing and no more than 36% on all debts combined, including the new mortgage. It is a starting point, not a lending law.
How much house can I afford on a $100,000 salary?
With no other debts, 28% of $8,333 a month is about $2,333 for the full housing payment. How much house that buys depends on your rate, down payment, taxes and insurance — enter them in the calculator.
Does the calculator include closing costs?
No. It assumes all your cash goes to the down payment. Keep money aside for closing costs and reserves; our closing cost calculator estimates them for Florida, Texas and Arizona.
Sources
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios
- HUD Single Family Housing Policy Handbook 4000.1 (FHA underwriting)
- CFPB — What is a debt-to-income ratio?
- U.S. Census Bureau — American Community Survey 2020-2024 5-year estimates, tables B25103 and B25077
Results are estimates for information only and are not legal, tax or financial advice. Confirm the figures with your lender, title or escrow company and the county offices.
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