Find out how much house you can afford based on your income, debts, and down payment. See conservative, moderate, and aggressive scenarios using the 28/36 rule.
This home affordability calculator uses the industry-standard 28/36 debt-to-income rule to calculate the maximum home price you can comfortably afford. It accounts for your income, existing debts, down payment, interest rate, property taxes, and insurance to give you three scenarios: conservative (what you can comfortably afford), moderate (the lender standard), and aggressive (the maximum most lenders will approve). Use this as your starting point before talking to a lender. All calculations run in your browser — your data never leaves your device.
A general rule is that your home price should be 2.5–3× your annual gross income. On a $100,000 salary, that is $250,000–$300,000. However, this varies based on your debts, down payment, interest rate, and local property taxes and insurance. Our home affordability calculator uses the 28/36 rule to give you a more precise estimate.
The 28/36 rule states that your housing costs should not exceed 28% of your gross monthly income (front-end DTI), and all debt payments combined should not exceed 36% (back-end DTI). On a $100,000 salary ($8,333/month), 28% = $2,333 max housing payment and 36% = $3,000 max total debt payments.
A 20% down payment eliminates PMI (private mortgage insurance) and gives you a lower interest rate. However, many buyers put down 3–10% through FHA loans (3.5% minimum), conventional loans (3% minimum), or VA loans (0% for veterans). A larger down payment means lower monthly payments and less total interest paid.
For mortgage qualification, lenders look at two DTI ratios: Front-end DTI (housing costs ÷ gross income) should be under 28%. Back-end DTI (all monthly debts ÷ gross income) should be under 36–43%. Most conventional loans require back-end DTI under 45%, while FHA loans allow up to 50% in some cases.
Set a specific savings target (typically 20% of your target home price plus 3–5% for closing costs). Open a dedicated high-yield savings account. Automate monthly transfers on payday. Look into first-time homebuyer programs in your state — many offer grants or low-interest loans for down payment assistance. Our savings calculator can help you plan your timeline.