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How Much House Can I Afford?

Find out how much house you can afford: the highest home price your income supports under 28/36 or your own debt-to-income limits — with property tax, insurance, HOA and PMI in the payment — or the income a price needs.

Home you can afford

$338,068

maximum price at 28/36 limits · comfortable: $305,405 (housing at 25% of income)

Monthly housing cost: $2,333; PITI + HOA + PMI
Loan amount: $278,068; 17.7% down
Housing DTI (front-end): 28%; limit 28% · binding
Total DTI (back-end): 34%; limit 36%

The housing limit sets the price: 28% of $8,333 is $2,333 a month for housing.

Monthly payment at the maximum price
Item	Per month	Share
Principal & interest	$1,757.58	75%
Property tax	$309.90	13%
Home insurance	$150.00	6%
HOA dues	$0.00	0%
PMI	$115.86	5%
Total	$2,333.33	100%

Price at other housing shares
Housing ≤	Max price	Per month	Total DTI
20% of gross	$261,962	$1,667	26%
25% of gross	$305,405	$2,083	31%
28% of gross(your limit)	$338,068	$2,333	34%
31% of grosscapped by 36% total	$359,843	$2,500	36%
36% of grosscapped by 36% total	$359,843	$2,500	36%

An estimate from debt-to-income limits, not a loan offer. Lenders also look at credit score, cash reserves, loan limits and program rules, and closing costs need cash on top of the down payment.

How lenders use debt-to-income

Housing costprincipal & interest + property tax + insurance + HOA + PMI
Front-end (housing) DTIhousing cost ÷ gross monthly income
Back-end (total) DTI(housing cost + other monthly debt payments) ÷ gross monthly income
Housing allowancethe smaller of front limit × income and back limit × income − debts

Tax, PMI and the loan all grow with the price, so the calculator solves for the price whose housing cost equals the allowance exactly. PMI is charged only while the down payment is under 20%, so the price is solved separately on each side of that point.

The "comfortable" figure keeps housing to 25% of gross income. The reverse mode works backwards: income needed = the larger of housing ÷ front limit and (housing + debts) ÷ back limit.

Worked example

$100,000 a year ($8,333.33 a month), $500 a month of car and card payments, $60,000 down, 6.5% over 30 years, 28/36 limits.

Housing limit: 28% × $8,333.33 = $2,333.33. Total limit: 36% × $8,333.33 − $500 = $2,500.00. The housing limit is lower, so it binds.

Monthly payment at the maximum price
At $338,068	Per month
Principal & interest	$1,757.58
Property tax (1.1%/yr)	$309.90
Home insurance	$150.00
PMI (0.5%/yr of the loan)	$115.86
Housing cost	$2,333.33

Maximum price $338,068 with a $278,068 loan (17.7% down). Housing DTI 28%, total DTI 34%. Keeping housing to 25% of income gives about $305,405.

Reverse: a $400,000 home costs $2,807.36 a month here, which needs about $120,316 a year under 28/36.

Choosing your limits

28/36

A common lender guideline for conventional loans and a cautious personal target. It leaves room for saving, repairs and the costs a DTI ratio ignores, like childcare and commuting.

36/43

A stretch. 43% was the debt-to-income cap in the original federal qualified-mortgage rule and is still a common benchmark. Many lenders will approve this or more, but approval is not the same as comfort.

Custom

Use the ratios from a pre-approval letter or a loan program. FHA, VA and USDA loans, and lenders' automated systems, each have their own limits and exceptions.

The defaults for property tax (1.1% a year), insurance and PMI (0.5% of the loan a year) are placeholders, not market data — replace them with your county's tax rate and quotes from an insurer and lender. PMI is modeled as a flat yearly rate while the down payment is under 20%; government-backed loans use their own mortgage insurance or funding fees instead. The result is not a loan offer and ignores closing costs and cash reserves.

Sources: Consumer Financial Protection Bureau, Ability-to-Repay and Qualified Mortgage rule (12 C.F.R. § 1026.43(e)), original 43% DTI limit and its 2020 General QM amendment; Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios. Checked 14 October 2026.

Frequently asked questions

What is the 28/36 rule?+

It is a common lender guideline: spend no more than 28% of gross monthly income on housing (mortgage principal and interest, property tax, insurance, HOA dues and mortgage insurance) and no more than 36% on housing plus all other debt payments. On $100,000 a year that is $2,333 a month for housing and $3,000 for all debts.

How much house can I afford on $100,000 a year?+

With $500 a month of other debts, $60,000 down, a 6.5% 30-year loan, 1.1% property tax, $1,800 a year insurance and PMI at 0.5%, the 28/36 limits allow about $338,068. Keeping housing to 25% of income gives about $305,405; stretching to 36/43 gives about $425,168. A different rate or tax rate changes these a lot.

What counts as debt in the debt-to-income ratio?+

Monthly payments that show on your credit report or that you're legally required to make: car loans and leases, student loans, minimum credit card payments, personal loans, other mortgages, and alimony or child support. Rent you'll stop paying, utilities, phone bills, insurance and groceries are not counted.

Do lenders use gross or net income?+

Gross income — what you earn before tax and payroll deductions. That's why DTI limits can feel generous: 28% of gross pay is a bigger share of what lands in your bank account. Use the Paycheck Calculator to see the payment as a share of take-home pay.

Does PMI count toward DTI?+

Yes. Mortgage insurance is part of the monthly housing payment, so it counts toward both ratios. In the example above PMI adds $115.86 a month; without it the same limits would allow about $354,076. This calculator charges PMI whenever the down payment is under 20% of the price.

Why does the price sometimes stop at exactly 20% down?+

Because PMI starts the moment the down payment drops below 20%. If a slightly dearer home would add a PMI payment that pushes you over the limit, the highest price that fits is the one where your down payment is exactly 20%.

Is 43% DTI the maximum?+

No single maximum applies to every loan. 43% was the cap in the original federal qualified-mortgage rule, which is why it is still a common benchmark, but that rule now uses a pricing test instead. Fannie Mae allows up to 50% for loans approved through its automated system, and other programs set their own limits. Higher ratios mean a tighter budget.

Which limit matters more, front-end or back-end?+

Whichever is lower once your debts are taken off. With $500 of monthly debts the 28% housing limit binds in the example. Raise the debts to $1,500 and the 36% total limit takes over, cutting the price to about $238,933.

How much income do I need to buy a $400,000 house?+

With the same assumptions as the example ($60,000 down, 6.5% for 30 years, 1.1% property tax, $1,800 a year insurance, PMI and $500 a month of other debts), the 28/36 limits need a gross income of about $120,316 a year. The housing payment would be $2,807.36 a month. Switch the calculator to “Income needed” to try your own price, rate, taxes and debts.

Do I need a 20% down payment?+

No. Many conventional loans allow less, some as little as 3%, and FHA loans allow 3.5% for borrowers who meet the credit-score requirement. Below 20% down you usually pay mortgage insurance, which the calculator adds as PMI and which reduces the price you can afford.

Is anything I enter saved or sent?+

No. Everything is calculated in your browser and nothing is stored or uploaded.