Mortgage Affordability Calculator
Most affordability calculators give you one number based on one rule. This one shows you four, side by side, Conservative, Conventional, FHA, and VA, so you can see the real range instead of a single bank-approved ceiling.
Your Income & Debts
Car loans, student loans, credit card minimums, personal loans — not counting rent or the mortgage you’re solving for.
Percent shown is relative to the Conventional home price estimate below and updates as you adjust either field.
1.10% is close to the national average. For an exact figure, use one of our state mortgage calculators instead.
How Much House You Can Afford, Four Ways
Every method below uses your same income, debts, and down payment — only the underwriting ratio changes. There’s no single right answer; there’s a range, and where you sit in it is a real financial decision, not just a bank approval.
Your Debt-to-Income Breakdown (Conventional)
Enter your income and debts above to see your real affordability range.
Cash You’ll Actually Need on Day One
Affordability isn’t just the monthly payment; it’s whether you have the upfront cash too. Based on the Conventional estimate above.
What a Rate Change Does to Your Affordability
Same income, same debts, same down payment — only the rate moves. This is the Conventional (28/36) estimate at each rate.
How Much House Can I Afford? Why the Question Has More Than One Right Answer
Type “how much house can I afford” into any search engine and nearly every calculator gives you a single number, usually built on the 28/36 rule: no more than 28% of your gross monthly income on housing costs, no more than 36% on total debt. That rule is real, it’s the standard most conventional lenders underwrite to, but it’s also just one of at least four genuinely different answers depending on the loan program and how conservative you want to be. A bank might approve you for one number. A financial planner might recommend a smaller one. An FHA loan might qualify you for a larger one because the ratios are looser, even though it adds its own mortgage insurance cost. This calculator shows all of them at once, on purpose, because picking a single rule and presenting it as “the answer” is exactly what makes most affordability calculators less useful than they could be.
The 28/36 rule, and where the numbers actually come from
The 28/36 rule breaks your debt-to-income ratio, commonly called DTI, into two pieces. The front-end ratio, the 28, covers housing costs alone: principal, interest, property taxes, homeowners insurance, and HOA dues, sometimes abbreviated PITIA. The back-end ratio, the 36, covers that same housing payment plus every other recurring debt you carry, car payments, student loans, credit card minimums, personal loans. Lenders care about the back-end number more, since it reflects your total monthly obligation, not just the mortgage. Many conventional lenders will actually stretch back-end DTI up to 43% or even 45% for borrowers with strong credit and reserves, which is part of why “the bank says I can afford more” and “I’m comfortable spending this much” are genuinely different questions.
FHA, VA, and the tradeoffs behind looser ratios
FHA loans use a 31/43 guideline, front-end and back-end, meaningfully looser than conventional underwriting, which is part of why FHA loans are popular with first-time buyers who have real income but tighter cash reserves or a shorter credit history. The tradeoff is FHA’s mortgage insurance premium, both an upfront charge and an ongoing monthly cost that, unlike conventional PMI, often can’t be removed simply by reaching 20% equity. VA loans, available to eligible veterans, active-duty service members, and some surviving spouses, generally don’t enforce a strict front-end ratio at all, focusing instead on a back-end DTI around 41%, and typically require no down payment and no monthly mortgage insurance, which is a significant structural advantage for anyone who qualifies.
What “affordable” means when you’re not just trying to get approved
A meaningful share of financial planners recommend a more conservative 25% front-end ratio specifically because a bank’s maximum approval and a household’s actual comfort zone are not the same thing. Spending right up to the 36% or 43% back-end ceiling can leave little room for retirement contributions, an emergency fund, home maintenance, or simply the ability to absorb a job change without financial stress. There’s no universally correct answer here; a dual-income household with stable jobs and no other debt has a very different real-world margin than a single-income household carrying student loans, even at an identical approved DTI ratio.
How Much House Can I Afford by Salary? A Quick Reference
Using a 10% down payment, a 6.6% interest rate, a 30-year term, 1.1% property tax, and $1,500 a year in insurance, with no other monthly debt, here’s roughly what different income levels translate to across the three most common ratios. Use the calculator above for a number based on your actual debts and down payment; this table is a starting reference point.
| Annual income | Conservative (25%) | Conventional (28%) | FHA (31%) |
|---|---|---|---|
| $40,000 | $98,000 | $112,000 | $126,000 |
| $60,000 | $156,000 | $176,000 | $197,000 |
| $80,000 | $213,000 | $241,000 | $269,000 |
| $100,000 | $271,000 | $306,000 | $340,000 |
| $125,000 | $343,000 | $386,000 | $429,000 |
| $150,000 | $415,000 | $467,000 | $519,000 |
| $200,000 | $559,000 | $628,000 | $698,000 |
| $250,000 | $703,000 | $790,000 | $876,000 |
Figures are rounded estimates assuming no other monthly debt. Real property tax rates, insurance costs, and your own debt load will shift these numbers meaningfully, up or down, which is exactly why the interactive calculator above exists.
Common Mistakes People Make Estimating Affordability
- Using only the front-end ratio and ignoring existing debt. A car payment or student loan can lower your real housing budget well below the 28% or 31% ceiling once the back-end ratio kicks in.
- Forgetting PMI when putting down less than 20%. It adds a real monthly cost on conventional and FHA loans that a simple “price times rate” estimate skips entirely.
- Treating the bank’s maximum approval as the target. Being approved for a payment and being comfortable with it long-term are different questions; the Conservative estimate above exists for exactly this reason.
- Ignoring cash needed at closing. A household can be well within DTI limits on paper and still not have enough saved for a down payment plus closing costs.
- Assuming today’s rate is locked in for planning purposes. The rate stress test above shows how much a one- or two-point rate move changes what the same income can actually support.
Tips for Improving What You Can Afford
- Pay down or pay off a car loan, credit card balance, or personal loan before applying; it directly raises your back-end-limited housing budget.
- Save toward 20% down if realistic for your timeline; it eliminates PMI and lowers your monthly payment on the same purchase price.
- Get quotes from at least three lenders; even a quarter-point rate difference changes your real affordability meaningfully at higher loan amounts.
- If you’re a veteran or active-duty service member, get pre-qualified for a VA loan before assuming you need 10-20% down elsewhere.
- Use a state-specific calculator for your actual property tax rate and local exemptions once you’ve narrowed down a price range here.
Frequently Asked Questions
How much house can I afford based on my salary?
A common starting point is the 28/36 rule: no more than 28% of gross monthly income on housing costs and no more than 36% on total debt. The exact home price this supports depends heavily on your down payment, debts, property tax rate, and interest rate, which is why a single “salary times a multiplier” rule of thumb is only a rough starting estimate.
What is the 28/36 rule for mortgage affordability?
A guideline stating housing costs shouldn’t exceed 28% of gross monthly income (the front-end ratio) and total debt payments, including housing, shouldn’t exceed 36% (the back-end ratio). It’s the standard most conventional lenders use, though many will stretch back-end DTI higher for strong borrowers.
What’s the difference between front-end and back-end DTI?
Front-end DTI covers housing costs alone, principal, interest, taxes, insurance, and HOA dues. Back-end DTI covers that same housing payment plus every other recurring monthly debt, like car loans, student loans, and credit cards.
How much house can I afford with no debt?
With no other monthly debt, your back-end ratio and front-end ratio effectively become the same constraint, meaning you can generally afford more house than someone with an identical income carrying car or student loan payments.
Does a mortgage affordability calculator include property tax and insurance?
A useful one should. Housing cost in the 28/36 rule refers to the full payment, principal, interest, taxes, insurance, and HOA dues together, not just principal and interest, which is why leaving those out overstates what you can actually afford.
How much house can I afford with an FHA loan?
FHA loans generally allow front-end DTI up to 31% and back-end DTI up to 43%, looser than conventional guidelines, though FHA mortgage insurance premiums add an ongoing cost that a conventional loan with 20% down avoids.
How much house can I afford with a VA loan?
VA loans generally don’t enforce a strict front-end ratio, focusing on a back-end DTI around 41%, and typically allow no down payment and no monthly mortgage insurance for eligible veterans and service members.
Should I spend the maximum I’m approved for?
Not necessarily. Loan approval reflects a lender’s risk tolerance, not your household’s comfort with savings, emergency funds, and future flexibility. Many financial planners recommend a more conservative 25% front-end ratio for exactly this reason.
How much cash do I need to buy a house beyond the down payment?
Budget for closing costs on top of your down payment, commonly estimated around 2% to 5% of the purchase price, covering items like loan origination fees, title insurance, appraisal, and recording fees.
How does a higher interest rate affect how much house I can afford?
A higher rate increases the principal and interest portion of your payment on the same loan amount, which lowers the maximum home price your income can support under the same DTI ratio; even a one-point rate increase can meaningfully shrink your affordable price range.
References
- Consumer Financial Protection Bureau, Ability-to-Repay and Qualified Mortgage guidance – consumerfinance.gov
- U.S. Department of Housing and Urban Development, FHA loan underwriting guidelines – hud.gov
- U.S. Department of Veterans Affairs, VA home loan eligibility and underwriting guidance – va.gov/housing-assistance/home-loans
- Freddie Mac Primary Mortgage Market Survey, weekly national rate averages – freddiemac.com/pmms
Related DexoCalc Tools
Once you have a target price range from this affordability calculator, two tools take you further. Use the national Mortgage Calculator to model a specific home’s exact monthly payment, and use one of our state-specific mortgage calculators, including the New York, New Jersey, and Nevada calculators, to swap this page’s national-average property tax estimate for your actual local rate, exemptions, and county-specific quirks.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed mortgage professional or financial advisor. Debt-to-income guidelines vary by lender, loan program, and individual credit profile; confirm your actual affordability with a lender before making an offer. Sources: CFPB, HUD, VA, Freddie Mac.