How Much House Can I Afford?
Enter your gross income, monthly debts, and down payment to instantly find your maximum home price, loan amount, and monthly payment — based on real lender DTI guidelines.
Your Financial Profile
Found your budget? Calculate your exact payment.
Use our full mortgage calculator to see the complete monthly breakdown — PMI, property taxes, HOA fees, and a printable amortization schedule.
How This Affordability Calculator Works
This calculator uses the same debt-to-income (DTI) ratios that US mortgage lenders apply when reviewing loan applications. You enter your gross annual income, existing monthly debt obligations, available down payment, and local costs. The calculator works backwards from your income to find the maximum monthly housing payment you qualify for, then uses a binary search to convert that into a maximum home price — accounting for the fact that property taxes scale with the home price.
Two DTI ratios are always checked. The front-end ratio caps your housing costs at 28% of your gross monthly income. The back-end ratio caps your total monthly debt — housing plus all other loan payments — at the percentage you choose. The calculator uses whichever limit produces the lower maximum payment, exactly as a lender would.
Understanding Debt-to-Income Ratios
DTI is the single most important number in mortgage qualification. It determines not just whether you get approved, but at what interest rate and on what terms. Here is how the thresholds break down in practice:
| Back-End DTI | Lender View | Loan Types Available | Rate Impact |
|---|---|---|---|
| Under 36% | Excellent | All conventional, FHA, VA, USDA | Best rates |
| 36% – 43% | Good | Most conventional and all government loans | Standard rates |
| 43% – 50% | Acceptable | FHA, some conventional with compensating factors | Higher rates possible |
| Over 50% | High risk | Very limited — manual underwriting required | Significantly higher |
How Much House Can You Afford on Different Salaries?
The table below shows estimated maximum home prices at different income levels, assuming a 10% down payment, 6.5% interest rate, 30-year term, $200/month in existing debts, and average property taxes and insurance — using the standard 28/36 guideline.
| Annual Income | Max Monthly Housing | Approx. Max Home Price | Down Payment (10%) |
|---|---|---|---|
| $50,000 | $1,167 | ~$155,000 | ~$15,500 |
| $60,000 | $1,400 | ~$185,000 | ~$18,500 |
| $70,000 | $1,633 | ~$215,000 | ~$21,500 |
| $80,000 | $1,867 | ~$248,000 | ~$24,800 |
| $100,000 | $2,333 | ~$310,000 | ~$31,000 |
| $120,000 | $2,800 | ~$372,000 | ~$37,200 |
| $150,000 | $3,500 | ~$466,000 | ~$46,600 |
| $200,000 | $4,667 | ~$622,000 | ~$62,200 |
Five Practical Ways to Afford More House
1. Increase your down payment
A larger down payment reduces your loan amount directly, lowering your monthly principal and interest payment. This allows you to qualify for a more expensive home on the same income. At 20% or more, you also eliminate PMI — saving $100 to $400 per month on a typical loan.
2. Pay down existing debts before applying
Your back-end DTI includes every monthly debt payment — car loans, student loans, credit card minimums, personal loans. Eliminating a $350/month car payment before you apply is the equivalent of adding roughly $40,000 to $55,000 to your home buying budget at a typical income level.
3. Improve your credit score
Your credit score determines your interest rate. On a $300,000 loan, the difference between a 620 score and a 760 score can be 1% to 1.5% in rate — translating to $180 to $270 less per month. That lower payment means you qualify for a meaningfully higher loan amount on the same income.
4. Choose a 30-year term over a shorter one
A 30-year loan has a lower monthly payment than a 15 or 20-year loan on the same balance, which increases your qualifying amount. The tradeoff is more total interest paid. If getting into a home now is the priority, you can always refinance to a shorter term later when your income grows.
5. Add a co-borrower
Adding a co-borrower combines both incomes for DTI calculation. This is one of the most powerful ways to increase purchasing power — provided both borrowers have acceptable credit and manageable individual debts.
What Lenders Include in Your DTI — and What They Don't
Lenders include your monthly housing payment (principal, interest, property taxes, and insurance) plus all existing monthly loan and credit obligations. They do not include utilities, groceries, childcare, subscriptions, car maintenance, or any other living expense. This means your DTI qualification figure can look much healthier than your real-world monthly budget. Just because a lender will approve you for $400,000 does not mean a $400,000 payment is comfortable. Always build a personal budget that accounts for all costs before committing to a purchase price.
Frequently Asked Questions
How much house can I afford on a $70,000 salary?
On a $70,000 annual gross income with no other debts, a 10% down payment, and a 6.5% interest rate, most lenders will approve a home priced between $215,000 and $245,000 using the 28/36 rule. Existing debts bring that number down. Use the calculator above with your exact figures.
What is the 28/36 rule?
The 28/36 rule says your monthly housing costs should not exceed 28% of your gross monthly income, and your total monthly debts — housing plus everything else — should not exceed 36% of gross monthly income. Many conventional lenders still use this as a baseline, though Fannie Mae and Freddie Mac guidelines now allow up to 45% to 50% DTI with strong compensating factors.
How much income do I need to buy a $300,000 house?
To buy a $300,000 home with a 10% down payment, a 30-year loan at 6.5%, and average taxes and insurance, you typically need a gross annual income of at least $68,000 to $75,000 to satisfy the 28% front-end ratio. With significant existing debts that floor rises further.
What is a good debt-to-income ratio for a mortgage?
A back-end DTI below 36% is excellent and qualifies you for the best rates on virtually all loan types. A DTI between 36% and 43% is acceptable for most conventional loans. FHA loans allow up to 50% in some circumstances. The lower your DTI, the more lenders compete for your business and the better your terms.
Should I borrow the maximum amount a lender will approve?
Almost never. Lenders calculate the maximum they will lend based on DTI alone — they do not account for utilities, groceries, childcare, retirement savings, or other living expenses. A mortgage at 43% DTI might pass underwriting but leave you financially stretched. Most financial planners recommend keeping your housing payment at 25% to 30% of gross income. Use the Conservative option in the calculator above to see what a more comfortable budget looks like.
Does my down payment affect how much house I can afford?
Yes, significantly. A larger down payment reduces your loan balance and monthly P&I payment, allowing you to qualify for a higher home price on the same income. The down payment scenario table in our calculator shows exactly how your qualifying price changes at 5%, 10%, 15%, 20%, and 25% down.