Payoff Logic

How Much House Can I Afford?

Turn your income, debts, and down payment into a realistic price range using the same 28/36 ratios lenders start from — plus a conservative and an aggressive scenario so you can see the whole spectrum, not one number. Free, no signup.

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Debts = car loans, student loans, credit-card minimums, other required payments (not utilities or groceries).

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Assumptions
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28/36 is the classic conventional guideline; PMI (0.5%/yr) is applied automatically when your down payment is under 20% of the resulting price.

You can afford a home up to about

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Monthly budget at that price

Comfort levels

Approach Ratios Housing budget Max price

Lenders may approve more than the "standard" row — approval limits and comfortable budgets are different things.

Affordability is a budget question, not an approval question

Lenders will often approve more than you should spend — modern underwriting allows total debt ratios in the mid-40s, while the classic comfort guideline is 36%. The difference lands on your monthly budget for years. That's why this calculator shows three rows: Conservative (25/33) leaves the most breathing room, Standard (28/36) is the traditional guideline, and Aggressive (31/43) approaches what approvals allow. House-shopping at the conservative number and stretching only for the right house beats the reverse.

Also watch which constraint binds you. If it's the back-end ratio, existing debts are eating your buying power — paying off a $400/month car loan can add roughly $60,000 of house at current rates, often more than years of extra saving. Our debt snowball calculator sequences that payoff.

From price range to real payment

Once you have a range, pressure-test it in the full mortgage calculator — it breaks the payment into principal, interest, taxes, insurance, PMI, and HOA and shows the complete amortization schedule. If you're considering an FHA or VA loan, the dedicated FHA and VA calculators model those programs' insurance and fees correctly.

Frequently asked questions

How much house can I afford on my salary?

The standard starting point is the 28/36 rule: housing costs at or under 28% of gross monthly income, and all debt payments (housing + cars + student loans + card minimums) at or under 36%. On a $100,000 salary with modest debts, that typically supports roughly a $2,300–$2,800 monthly housing budget — the calculator converts that into an actual price using your rate, taxes, and insurance.

What is the 28/36 rule?

A lending guideline used for conventional mortgages: the front-end ratio caps housing costs (mortgage payment, property tax, insurance, PMI, HOA) at 28% of gross monthly income; the back-end ratio caps housing plus all other debt payments at 36%. Whichever cap is lower for you is your binding limit — the calculator shows which one binds and why.

How much income do I need for a $400,000 house?

With 20% down at ~6.5% and average taxes/insurance, a $400k house costs roughly $2,550–$2,700 a month, which needs about $110,000–$120,000 of gross income under the 28% rule. Less down payment or more debt pushes the requirement up. Work it precisely by entering your own numbers above.

Do lenders actually approve more than the 28/36 rule?

Often, yes. Conventional loans can be approved up to about 45–50% back-end DTI with strong credit, and FHA even higher. That is exactly why "what the bank approves" and "what leaves room to live" are different numbers — the Aggressive row in the comfort table shows the approval-limit territory so you can see the gap.

How does my down payment change what I can afford?

Two ways. Directly: every extra dollar of down payment adds about a dollar of price at the same monthly budget. Indirectly: reaching 20% down removes PMI, which frees up budget for price. The calculator applies PMI automatically below 20% so the effect is visible.

Should I include my spouse’s income?

If you apply jointly, yes — enter combined gross income and combined debts. Note that lenders count both credit profiles; a low score on one applicant can raise the rate, which this calculator lets you test directly.

What monthly debts count against me?

Required contractual payments: car loans and leases, student loans, personal loans, credit-card minimums, child support, and other court-ordered obligations. Utilities, groceries, phone plans, insurance, and subscriptions do NOT count toward DTI — but they absolutely should count in your own budget.

Related calculators

  • Mortgage Calculator — Estimate your full monthly payment — principal, interest, property taxes, insurance, PMI, and HOA — with a complete amortization schedule.
  • FHA Loan Calculator — FHA payment with both MIP charges included — upfront 1.75% and the annual premium, with the 11-year rule.
  • VA Loan Calculator — VA payment with the correct funding fee for your down payment and usage — and no PMI.
  • 15-Year Mortgage Calculator — 15 vs. 30 years side by side: payment difference, interest difference, and equity build.
  • Debt Snowball Calculator — Compare the snowball and avalanche payoff methods side by side across all your debts.

Disclaimer: Educational purposes only — not financial advice or a prequalification. Lender criteria vary. See our Terms of Use.