A common rule of thumb is a home price of about 3 to 4 times your income, but the real answer depends on your debts, down payment and interest rate.
For example, on a $100,000 income with $500 a month in other debts, $60,000 down and a 7.24% rate, a conservative 28% / 36% limit points to a home around $317,000. The FHA-style 31% / 43% limit points to about $348,000.
AdvertisementUse the free calculator below to find the home price that fits your income. It includes property tax, homeowners insurance, PMI and HOA dues, so the payment you see is the full monthly cost.
How Much House Can I Afford Calculator
Enter your numbers
Your total yearly pay before taxes, in dollars. Include a co-borrower’s income if you will apply together.
Your monthly payments on car loans, student loans, credit cards and other debts. Do not include rent or utilities.
Car, student loans, cards
The cash you plan to put down, in dollars. Home price is what this calculator solves for, so the down payment percent appears in the results.
Dollar amount. The result shows the percent
The yearly interest rate on the mortgage. Use a lender’s quote if you have one.
Freddie Mac 30-year average, Oct 29, 2026
How many years you will take to repay the mortgage. Shorter terms have higher payments, so you can afford less house.
Yearly property tax as a percent of the home price. Your county assessor can tell you the rate.
Use your county’s rate
Your yearly homeowners insurance premium in dollars. Get a quote for a home like the one you want.
NerdWallet 2026 national average
Monthly homeowners association dues in dollars. Leave 0 if none.
Leave 0 if none
Private mortgage insurance rate, as a percent of the loan per year. It is added only when your down payment is under 20% of the home price.
Used only if down payment is under 20%
The limits lenders use for housing cost and total debt as a share of your gross income. The first number caps housing, the second caps housing plus other debts.
Your inputs
| Annual income | $100,000 |
| Monthly debt payments | $500 |
| Down payment | $60,000 |
| Interest rate | 7.24% |
| Loan term | 30 years |
| Property tax rate | 1.0% |
| Homeowners insurance | $2,490 a year |
| HOA dues | $0 a month |
| PMI rate | 0.5% |
| Income limits | 28% / 36% |
Estimated home price you can afford
$317,000
Based on a 28% housing and 36% total debt limit.
| Down payment | $60,000 (18.9%) |
| Loan amount | $257,388 |
| Highest monthly housing payment | $2,333 |
Estimated monthly payment
| Principal and interest | $1,754 |
| Property tax | $264 |
| Homeowners insurance | $208 |
| Mortgage insurance (PMI) | $107 |
| HOA dues | $0 |
| Total monthly payment | $2,333 |
Compare the two limits
| 28% / 36% limit: home price | $317,000 |
| 28% / 36% limit: monthly payment | $2,333 |
| 31% / 43% limit: home price | $348,000 |
| 31% / 43% limit: monthly payment | $2,583 |
This is an estimate, not a loan approval. Your lender’s limits and rates will differ.
To save your estimate: press Ctrl+P (Windows) or Cmd+P (Mac) and choose Save as PDF. Only the results print.
Home-Buying Checklist
Tick each item as you finish. You are ready to shop for a home when the counter reaches 10.
How the Calculator Works
- It finds your monthly budget. Your gross monthly income is multiplied by a housing limit and a total debt limit. The lower result, after subtracting your other debts, is your highest housing payment.
- It removes fixed costs. Homeowners insurance and HOA dues come off the budget first.
- It solves for the price. The rest of the budget pays principal, interest, property tax and PMI if your down payment is under 20%, and the calculator works out the home price that fits.
The 28% / 36% setting is a common rule of thumb. The 31% / 43% setting matches the standard ratios HUD lists for FHA loans: 31% of gross income for the mortgage payment and 43% for total fixed payments.
Income to Home Price Chart
This chart assumes $500 a month in other debts, $50,000 down, a 7.24% rate on a 30-year loan, a 1% property tax rate, $2,490 a year for insurance and PMI at 0.5% when the down payment is under 20%.
| Annual income | Home price (28% / 36%) | Monthly payment | Home price (31% / 43%) | Monthly payment |
|---|---|---|---|---|
| $50,000 | $148,000 | $1,000 | $186,000 | $1,292 |
| $60,000 | $187,000 | $1,300 | $220,000 | $1,550 |
| $75,000 | $246,000 | $1,750 | $259,000 | $1,937 |
| $90,000 | $279,000 | $2,100 | $307,000 | $2,325 |
| $100,000 | $308,000 | $2,333 | $339,000 | $2,583 |
| $125,000 | $381,000 | $2,917 | $419,000 | $3,229 |
| $150,000 | $453,000 | $3,500 | $500,000 | $3,875 |
| $200,000 | $598,000 | $4,667 | $660,000 | $5,167 |
What Affects How Much You Can Afford
- Income. Higher income raises both limits. A co-borrower’s income counts if you apply together.
- Debts. Every dollar of monthly debt lowers your housing budget by a dollar, so paying off a car loan or card can raise your price range.
- Down payment. It cuts the loan and can remove PMI.
- Interest rate. Freddie Mac’s survey showed 7.24% for a 30-year loan and 6.60% for a 15-year loan on October 29, 2026. Small changes in rate move the price a lot.
- Property tax and insurance. LendingTree’s analysis of Census data found a median property tax of $3,489 a year for mortgaged homeowners in 2024. NerdWallet’s 2026 data puts the average homeowners insurance at $2,490 a year for $400,000 of coverage. Both vary by location.
- Loan term. A 15-year loan has a higher payment, so you can afford a lower price, but you pay far less interest.
Today’s Home Prices
The National Association of Realtors reported a median existing-home price of $417,500 in September 2026, up 1.3% from a year earlier. First-time buyers made up 31% of sales. Local prices can be far above or below the national median, so compare your result with homes for sale in your area.
Costs Beyond the Mortgage Payment
- Closing costs. Ask your lender for a Loan Estimate that lists them.
- Maintenance and repairs. Keep a cash reserve for the roof, heating and other surprises.
- Utilities and moving costs. A larger home often costs more to heat, cool and furnish.
- PMI. If you put down less than 20%, you can ask to cancel it at 80% of the original value, and it ends automatically at 78% if you are current, according to the CFPB.
Ways to Afford More House
- Save a bigger down payment.
- Pay down debts first, especially cards and car loans.
- Improve your credit score to qualify for a lower rate.
- Compare lenders. Get Loan Estimates from at least three on the same day.
- Look in lower-tax areas or homes without HOA dues.
- Add a co-borrower’s income if it fits your situation.
Mistakes to Avoid
- Using only the lender’s maximum. Choose a payment that leaves room for savings.
- Forgetting taxes and insurance. They can add hundreds of dollars a month.
- Using an old rate. Rates change weekly.
- Spending all your cash on the down payment. Keep a reserve.
- Ignoring other debts. They reduce what you can borrow.
Frequently Asked Questions
How much house can I afford on a $100,000 salary?
With $500 a month in other debts, $60,000 down, a 7.24% rate and typical tax and insurance, the conservative 28% / 36% limit gives about $317,000, and the FHA-style 31% / 43% limit gives about $348,000. Your numbers will change the result, so enter them in the calculator.
What is the 28/36 rule?
It is a common rule of thumb that your housing payment should be no more than 28% of your gross monthly income, and your total debt payments, including housing, no more than 36%. It is a guideline, not a law, and lenders set their own limits.
What debt-to-income ratio do lenders allow?
It depends on the loan. For FHA loans, HUD’s standard ratios are 31% of gross income for the mortgage payment and 43% for total fixed payments, with higher ratios allowed only with documented compensating factors. Other lenders and loan types have different limits.
Does a bigger down payment help me afford more?
Yes. A bigger down payment lowers the loan, so more of your monthly budget can go toward the price. At 20% or more down you also avoid PMI on most conventional loans.
How do interest rates change what I can afford?
A higher rate raises the principal and interest on every dollar borrowed, so the same monthly budget buys a lower price. Freddie Mac’s survey showed a 30-year average of 7.24% on October 29, 2026. Test your price at a rate one point higher as well.
What costs does the calculator include?
It includes principal and interest, property tax, homeowners insurance, PMI when the down payment is under 20% of the price, and HOA dues. It does not include closing costs, maintenance, utilities or moving costs.
What is the median home price in the U.S.?
The National Association of Realtors reported a median existing-home price of $417,500 for September 2026, up 1.3% from a year earlier. Prices differ widely by city and state.
Should I buy the most expensive house I qualify for?
Not necessarily. A lender’s limit shows the most you can borrow, not the most that is comfortable. Leave room for savings, repairs and changes in income, and consider the lower, conservative number.
Does my credit score matter?
Yes. A higher score usually earns a lower interest rate, which raises the price you can afford. Check your credit report before you apply and fix any errors.
Is this calculator a loan approval?
No. It gives an estimate from the numbers you enter. Only a lender can approve a loan after reviewing your income, credit, debts and the property. This page offers general information, not financial advice.
Conclusion
The home you can afford is the one that fits your income, debts and comfort, not only the lender’s limit. Enter your numbers in the calculator, compare the conservative and FHA-style results, and test a higher rate before you start shopping.
Related Reading
- Mortgage calculator with taxes and insurance
- Salary calculator
- Hourly to salary calculator
- Car loan interest calculator
Sources: HUD, FHA Handbook 4155.1, Section F; National Association of Realtors, Existing-home sales, September 2026; Freddie Mac, Primary Mortgage Market Survey; NerdWallet, Average Home Insurance Cost; LendingTree analysis of Census data, via Mortgage Professional America; CFPB, PMI cancellation bulletin. Estimates only, not financial advice.