How Much House Can I Afford?
Last updated: August 2026 • Rates reflect Freddie Mac PMMS averages
The quick answer: Lenders cap housing costs at 28% of gross income and total debt at 36%. On a $100,000 salary, that allows about $2,333 per month for housing — roughly a $330,000–$400,000 home depending on your down payment. Enter your income for your exact budget.
Use the Mortgage Affordability Calculator below — modify the values and click Calculate to see what you can afford.
Your Finances
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Please enter your annual income.
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Please enter a valid interest rate (0.1–30%).
Property Costs (Estimated)
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Your Budget (28/36 Rule)
Max Housing Payment (28%)$0
Max Total Debt (36%)$0
Available for Housing$0
Lender DTI Cap (43%)$0
Loan Details
Loan Amount$0
Down Payment$0
Down Payment %—
PMI—
Debt-to-Income Ratios
Front-end (Housing) DTI—
Back-end (Total) DTI—
How to Use This Affordability Calculator
- Annual Gross Income — your total income before taxes. This drives the 28/36 budget.
- Monthly Debt Payments — auto loans, student loans, credit cards, child support. These reduce what's available for housing.
- Down Payment — the more you put down, the more house you can buy and the lower your payment. 20% avoids PMI.
- Interest Rate — use the current 30-year average (6.8% as of mid-2026) or a quote from your lender.
- Click "Calculate My Budget" to see your maximum home price, estimated monthly payment, and where you stand on the lender ratios.
The 28/36 Rule Explained
Lenders use two ratios to judge how much you can borrow:
Front-end ratio = total housing payment (PITI) ÷ gross monthly income → should be ≤ 28%
Back-end ratio = (housing + all other debts) ÷ gross monthly income → should be ≤ 36%
Hard cap: back-end ratio of 43% for most conventional loans (FHA allows up to 57%)
Back-end ratio = (housing + all other debts) ÷ gross monthly income → should be ≤ 36%
Hard cap: back-end ratio of 43% for most conventional loans (FHA allows up to 57%)
Example: With a $100,000 salary ($8,333/mo), the 28% rule allows $2,333/mo for housing. If you also pay $800/mo in other debts, the 36% back-end rule allows $3,000/mo total debt — leaving only $2,200/mo for housing. That's the number that determines your price range.
Home Price by Salary (2026 Rates, 20% Down)
Maximum affordable home price at a 6.8% 30-year rate, assuming property tax of 1.1% and insurance of $1,500/yr:
| Annual Income | Monthly Housing Budget | Home Price (20% Down) | Estimated Payment |
|---|---|---|---|
| $60,000 | $1,400 | ~$210,000 | $1,400 |
| $80,000 | $1,867 | ~$285,000 | $1,867 |
| $100,000 | $2,333 | ~$360,000 | $2,333 |
| $120,000 | $2,800 | ~$435,000 | $2,800 |
| $150,000 | $3,500 | ~$550,000 | $3,500 |
Assumes no other debt. Existing debt payments reduce these numbers — run your own figures in the calculator above.
How to Increase How Much House You Can Afford
- Increase your down payment — a bigger down payment lowers the loan and removes PMI, freeing budget for a higher purchase price.
- Pay off high-interest debt — every $100/month of debt removed adds roughly $100/month of housing budget, which is worth about $15,000–20,000 in purchase price.
- Shop for a lower rate — a 0.5% lower rate adds roughly 5% to your buying power.
- Consider a longer term — a 30-year (vs 15-year) lowers the payment and raises what you can qualify for, at the cost of more total interest.
- Raise your income — a side income, bonus, or co-borrower improves both ratios.
Remember that what a lender approves and what's comfortable can differ. Most financial planners suggest staying at or below the 28/36 rule, even if a lender would approve more.
Frequently Asked Questions
How much house can I afford with a $100k salary?
With a $100,000 annual salary and no other debts, the 28/36 rule allows roughly $2,333/month for housing. At a 6.8% 30-year rate with 20% down, that supports a home price of about $350,000–$400,000 depending on property taxes and insurance. Your actual limit depends on your debts, down payment, and local rates.
What is the 28/36 rule?
The 28/36 rule is a lender guideline: your total housing payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt payments (housing plus credit cards, auto loans, student loans) should not exceed 36%. Lenders use these ratios to decide how much you can borrow.
How much down payment do I need?
A 20% down payment avoids private mortgage insurance (PMI) and typically qualifies you for a better rate. However, conventional loans allow as little as 3% down, FHA loans 3.5%, and VA/USDA loans 0% for eligible buyers. A smaller down payment means a higher loan amount and monthly payment, plus PMI until you reach 20% equity.
What is the maximum debt-to-income ratio for a mortgage?
Most lenders cap your back-end debt-to-income (DTI) ratio at 43%, with 36% considered ideal. FHA loans allow up to 57% in some cases, and VA loans up to 60% with compensating factors. Above 43%, most conventional loans are not approved regardless of credit score.
What costs are included in my monthly mortgage payment?
Your full monthly payment — called PITI — includes principal and interest (the loan payment), property taxes (usually about 1% of home value per year), homeowners insurance (about $1,000–$2,000/year), and private mortgage insurance if your down payment is under 20%. HOA fees are additional if applicable.
Data sources: Freddie Mac PMMS July 2026, Consumer Financial Protection Bureau (CFPB) mortgage disclosures, FHA/HUD loan guidelines. Results are estimates — final approval depends on credit score, loan type, and lender discretion. For informational purposes only.
Free Online Calculators
Current Average Mortgage Rates (2026)
| Loan Type | Avg. Rate | Trend |
|---|---|---|
| 30-yr Fixed | 6.80% | ? Stable |
| 20-yr Fixed | 6.50% | ? Stable |
| 15-yr Fixed | 6.10% | ? Easing |
| 5/1 ARM | 6.30% | ? Rising |
| 10-yr Fixed | 6.05% | ? Easing |
Source: Freddie Mac PMMS, July 2026. For informational purposes only.
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Affordability Quick Facts
- Housing should be ≤ 28% of gross income; total debt ≤ 36%.
- Hard DTI cap for most loans: 43%.
- 20% down removes PMI (~0.5–1.5% of loan/yr).
- Each $100/mo of debt ≈ $15–20K less house.
- A 0.5% lower rate adds about 5% buying power.