How much house can I afford? — free home affordability calculator
Use this house affordability calculator to answer how much house can I afford on your salary. Enter gross annual income, other monthly debt (car loans, student loans, credit card minimums), down payment, expected mortgage rate and term, plus property tax, home insurance, HOA, and PMI when putting less than 20% down. The tool applies the 28/36 rule, estimates your debt-to-income (DTI) at the max price, and shows max home price, loan amount, and monthly PITI. For a known home price, use the mortgage calculator; for P&I-only loans see the loan calculator.
How to use this affordability calculator
- Under income & debt, enter pretax annual income and fixed monthly debt payments (not utilities or groceries).
- Under mortgage assumptions, set down payment %, interest rate, and term (years or months).
- Enter tax and insurance as % of home price per year, plus HOA and PMI if applicable.
- Read max home price, PITI budget cap, front-end and back-end DTI, and which rule (28% or 36%) is binding; copy link to share your scenario.
Example: $120,000 income, $500/month debt, 10% down, 6.5%, 30 years
Gross monthly income is $10,000. The 28% housing cap allows about $2,800/month for PITI; the 36% back-end cap allows about $3,100/month for housing after $500 in other debt—so the 28% front-end rule is often the tighter limit here. With tax, insurance, and PMI assumptions, the calculator backs into a max home price where estimated PITI stays near that cap. Raising other debt or lowering income shrinks the affordable range; a larger down payment reduces PMI and can increase buying power.
The 28/36 rule explained
28% (front-end): monthly housing costs—mortgage principal and interest plus taxes, insurance, HOA, and PMI—should stay at or below 28% of gross monthly income. 36% (back-end): housing plus all other recurring monthly debt payments should stay at or below 36% of gross income. These are planning guidelines; lenders may approve higher or lower ratios depending on credit, reserves, and loan program. Some programs use slightly different back-end limits (for example around 43%); this page uses 28/36 as a widely cited starting point.
Debt-to-income ratio (DTI)
Back-end DTI = (Monthly PITI + Other monthly debt) ÷ Gross monthly income
Front-end DTI uses only PITI in the numerator. Paying down revolving debt or avoiding new car payments before buying can improve back-end room even when income is unchanged. The results panel shows estimated DTI at the calculated max price so you can see how close you are to the 28% and 36% benchmarks.
Down payment, PMI, taxes, and insurance
A down payment lowers the loan amount and monthly principal and interest. When down payment is under 20%, many conventional loans require PMI—enter an annual PMI rate to include it in PITI. Property tax and insurance vary by location; entering them as a percent of home price keeps the estimate scalable as price changes. After you have a target price, open the mortgage calculator for a full payment schedule and optional extra payments.
Frequently asked questions
How much house can I afford on my income?
Enter gross income and monthly debt; the tool caps PITI with 28/36, then solves for max price given your rate, term, down payment, and tax/insurance/HOA/PMI inputs.
What is the 28/36 rule?
28% of gross monthly income for housing; 36% for housing plus other debt. Used here as a conservative planning guide.
What counts as monthly debt?
Include payments lenders typically count: auto loans, student loans, credit card minimums, and other fixed installments—not food, utilities, or retirement contributions.
Does affordability include taxes and insurance?
Yes—PITI includes principal, interest, tax, insurance, HOA, and PMI when applicable.
Can I share my affordability scenario?
Use copy link above the form to share the same income, debt, and loan assumptions with a partner or advisor.