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How Much House Can I Afford Calculator

Find out how much home you can comfortably afford based on your income, debts, and savings. We'll show you a realistic budget — not just the maximum a lender might approve.

How to Use This Calculator

Enter your annual gross income (before taxes) and all monthly debt obligations. Input your available down payment and expected interest rate. The calculator will determine the maximum home price you can afford at your desired DTI ratio.

Understanding Your Results

The comfortable budget uses the standard 28/36 rule, while the stretch budget shows the maximum a lender might approve at 43% DTI. If your calculated DTI exceeds 43%, you'll see a warning — most lenders won't approve loans above this threshold. The estimated monthly payment shows what you'd pay at the maximum comfortable price.

Pro Tips

  • ✓Pay off small debts before applying — even eliminating a $200/month car payment can increase your buying power by $30,000+.
  • ✓Budget for closing costs (2-5% of home price) on top of your down payment.
  • ✓If you're stretching your budget, consider a less expensive home and investing the difference.
  • ✓Pre-approval from a lender gives you a concrete number and shows sellers you're serious.

You Might Also Need

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Mortgage Payment

Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI.

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Down Payment

Calculate how much you need for a down payment and compare different down payment scenarios.

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Closing Costs

Estimate your closing costs with an itemized breakdown based on your location and loan type.

Frequently Asked Questions

How much house can I afford on my salary?▼
A common guideline is that your total housing costs should not exceed 28% of your gross monthly income, and total debts (including housing) should stay below 36%. However, lenders may approve up to 43% DTI. Our calculator shows both comfortable and maximum scenarios.
What is the 28/36 rule for mortgages?▼
The 28/36 rule suggests spending no more than 28% of gross income on housing costs and no more than 36% on total debt payments. This is a conservative guideline that helps ensure you can comfortably afford your home while maintaining other financial goals.
How does my debt affect how much house I can afford?▼
Every dollar of monthly debt reduces how much you can borrow. Car payments, student loans, credit card minimums, and other obligations all count toward your debt-to-income ratio, directly reducing your maximum home price.
What DTI ratio do lenders look for?▼
Most conventional lenders prefer a DTI below 36%, though many will approve up to 43%. FHA loans may allow up to 50% in some cases. Lower DTI ratios get better rates and more favorable terms.
Should I buy the most expensive house I can qualify for?▼
Generally no. Just because a lender approves you for a certain amount doesn't mean it's comfortable. Leave room in your budget for savings, maintenance, emergencies, and lifestyle. Our calculator shows both comfortable and stretch budgets to help you decide.