How Much House Can I Afford? — Home Affordability Calculator 2026
Based on your income, debts, and down payment — the exact home price and cash you need to close
Reviewed for accuracy June 21, 2026 by Gary S.
Car loans, student loans, credit cards
Strong buying position — $756,000 max with healthy ratios
Your income supports a $2,100/month housing payment (28% of gross income) with only $500/month in existing debts. A 20%+ down payment would further strengthen this position.
- ›Max monthly housing payment: $2,100 (28% of gross monthly income)
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How to use Home Affordability Calculator
Free home affordability calculator using the 28/36 rule. Enter income, debts, down payment, and rate to find the maximum home price you can afford and cash needed to close.
A home affordability calculator tells you how much house you can afford based on your income, existing debts, down payment, and current mortgage rates. Most lenders use the 28/36 rule: your housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Knowing your number before you start house hunting prevents falling in love with a home outside your budget — and gives you a concrete target when saving for a down payment.
How to use this Home Affordability Calculator
- 1Enter your gross annual income (before taxes). If buying with a partner, enter combined household income.
- 2Enter your monthly debt payments — car loans, student loans, credit card minimums. Do not include current rent.
- 3Enter your planned down payment amount or percentage.
- 4Enter the current mortgage interest rate and your expected loan term (typically 30 years).
- 5The calculator applies the 28/36 rule and shows your maximum home price, estimated monthly payment, and how much you need in cash to close.
How much house can I afford — the 28/36 rule explained
Lenders use two debt-to-income (DTI) ratios to qualify buyers. The front-end ratio caps housing costs at 28% of gross monthly income. The back-end ratio caps all monthly debt payments at 36%. Your maximum home price is determined by whichever limit is reached first.
| Variable | Meaning |
|---|---|
| Front-end DTI | Housing costs ÷ gross monthly income ≤ 28% |
| Back-end DTI | (Housing + all debts) ÷ gross monthly income ≤ 36% |
| Housing costs | Principal + Interest + Property Tax + Insurance (PITI) |
| Max home price | Derived by working backwards from the maximum monthly payment |
| Cash needed | Down payment + closing costs (2–5% of loan) + reserves |
Home buying calculator example: $95,000 household income, $500/month existing debts
- 01Gross monthly income: $95,000 ÷ 12 = $7,917.
- 02Front-end limit (28%): $7,917 × 28% = $2,217/month maximum housing payment.
- 03Back-end limit (36%): $7,917 × 36% = $2,850. Minus existing debts $500 = $2,350 available for housing.
- 04Binding constraint: $2,217 (front-end is lower). At 7% rate, 30-year term, 10% down: max loan ≈ $334,000.
- 05Max home price: $334,000 ÷ 0.90 (90% loan) = $371,000. Cash needed: $37,100 down + ~$10,000 closing costs = ~$47,100.
Result
Maximum home price: approximately $371,000. Monthly payment (PITI): ~$2,217. Cash needed to close: ~$47,100.
What affects how much house you can afford?
Gross income
Lenders use gross (pre-tax) income. A household earning $100,000 gross typically qualifies for a home in the $350,000–$450,000 range depending on debts, rate, and down payment.
Existing debt
Every $100/month in existing debt payments reduces your home buying power by approximately $12,000–$15,000. Paying off a car loan before buying can significantly increase your budget.
Down payment
A larger down payment reduces your loan amount, eliminates PMI at 20%+, and lowers your monthly payment. It also signals financial strength to lenders.
Interest rate
At 6% vs 7%, the same $300,000 loan has a $180/month lower payment — which translates to roughly $25,000 more buying power.
Property taxes and insurance
These are included in PITI and reduce how much principal and interest you can carry. High-tax areas like NJ or IL can reduce buying power by $30,000–$50,000 vs low-tax states.
Credit score
A 760+ score qualifies for the best rates. Each 20-point drop below 760 can add 0.1–0.25% to your rate and directly reduces the home price you qualify for.
Tips and things to know
- ✓Lenders pre-approve up to the 36% back-end DTI limit — but just because you qualify does not mean you should borrow the maximum.
- ✓The 28/36 rule is a lender qualification standard, not a lifestyle recommendation. Many financial planners suggest keeping housing at 20–25% of take-home pay.
- ✓Get pre-approved before house hunting — it reveals the exact loan amount you qualify for and strengthens your offer in competitive markets.
- ✓Closing costs (2–5% of the loan) are often overlooked. Budget $8,000–$15,000 in closing costs on a $300,000 home, on top of your down payment.
- ✓FHA loans allow back-end DTI up to 43–57% with compensating factors — but the higher payment may strain your monthly budget even if you qualify.
Home Affordability Calculator — bottom line
Affordability is a function of four variables — income, down payment, monthly debt load, and interest rate — and lenders test all four simultaneously. The standard mortgage qualification rules are: housing costs ≤ 28% of gross monthly income (front-end ratio) and all debt payments ≤ 36% of gross monthly income (back-end ratio). But qualifying for a loan and comfortably affording a loan are different things. Lenders use gross income; you live on after-tax take-home pay, which is 25–35% lower depending on your tax bracket and benefits deductions. The most common mistake is conflating the maximum approval amount with the comfortable purchase ceiling. A family with $120,000 gross income qualifies for roughly a $420,000 mortgage by lender standards, but the monthly payment at 7% ($2,794) plus taxes and insurance ($500) equals $3,294 — close to 36% of after-tax take-home pay, leaving very little buffer for unexpected expenses or savings goals. A practical ceiling is 25% of take-home pay for total housing costs. Use this calculator with your actual take-home pay, not gross salary, to find a home price that leaves you financially comfortable — not just technically qualified. Down payment size is the second lever. Beyond eliminating PMI at 20% down, a larger down payment directly reduces the loan amount. Every additional 5% down on a $400,000 home saves roughly $20 per month in interest at current rates. After finding your affordable purchase price here, use the Mortgage Calculator to confirm the exact monthly payment and total interest on your target property.
Official resources and further reading
CFPB — How Much Home Can You Afford?
CFPB's homebuying preparation guide covering income requirements, debt-to-income ratios, and getting mortgage-ready.
HUD — FHA Loan Requirements
Official HUD guide to FHA loan requirements including down payment minimums, DTI limits, and mortgage insurance premiums.
Consumer Financial Protection Bureau — Mortgage Shopping Worksheet
CFPB comparison tool for different mortgage types — conventional, FHA, VA, and USDA — with requirements and trade-offs explained.
Home Affordability by City — All 50 Major Markets
How much house can you afford in your city? The answer depends on local home prices, property tax rates, and your income. The calculator above uses your specific numbers. The city pages below show the gross annual income required to afford the median home in each market, using the 28% front-end DTI rule, 20% down, and a 6.5% 30-year fixed mortgage.
Most Popular Markets
Los Angeles, CA
Median home: $900,000
Income needed: $244,543/yr
Chicago, IL
Median home: $330,000
Income needed: $101,614/yr
Houston, TX
Median home: $290,000
Income needed: $89,143/yr
Phoenix, AZ
Median home: $400,000
Income needed: $102,429/yr
Miami, FL
Median home: $580,000
Income needed: $155,143/yr
Seattle, WA
Median home: $740,000
Income needed: $195,257/yr
Denver, CO
Median home: $560,000
Income needed: $141,171/yr
Austin, TX
Median home: $525,000
Income needed: $161,614/yr
Atlanta, GA
Median home: $385,000
Income needed: $103,071/yr
Boston, MA
Median home: $700,000
Income needed: $190,714/yr
Nashville, TN
Median home: $460,000
Income needed: $118,286/yr
Dallas, TX
Median home: $345,000
Income needed: $107,186/yr
All 50 Cities — Sorted by Home Price
| City | Median home price | Income needed | Property tax |
|---|---|---|---|
| San Jose, CA | $1,300,000 | $337,929/yr | 0.76% |
| San Francisco, CA | $1,300,000 | $337,029/yr | 0.74% |
| Los Angeles, CA | $900,000 | $244,543/yr | 1.09% |
| San Diego, CA | $850,000 | $220,029/yr | 0.73% |
| New York City, NY | $750,000 | $198,429/yr | 0.89% |
| Honolulu, HI | $750,000 | $182,357/yr | 0.29% |
| Seattle, WA | $740,000 | $195,257/yr | 0.87% |
| Boston, MA | $700,000 | $190,714/yr | 1.11% |
| Washington, DC | $620,000 | $156,514/yr | 0.55% |
| Miami, FL | $580,000 | $155,143/yr | 0.97% |
| Denver, CO | $560,000 | $141,171/yr | 0.54% |
| Austin, TX | $525,000 | $161,614/yr | 2.10% |
| Salt Lake City, UT | $520,000 | $132,943/yr | 0.64% |
| Portland, OR | $490,000 | $132,300/yr | 1.04% |
| Sacramento, CA | $485,000 | $124,714/yr | 0.68% |
| Nashville, TN | $460,000 | $118,286/yr | 0.68% |
| Boise, ID | $450,000 | $116,529/yr | 0.73% |
| Raleigh, NC | $430,000 | $112,371/yr | 0.80% |
| Colorado Springs, CO | $425,000 | $106,971/yr | 0.53% |
| Las Vegas, NV | $420,000 | $106,029/yr | 0.55% |
| Phoenix, AZ | $400,000 | $102,429/yr | 0.65% |
| Atlanta, GA | $385,000 | $103,071/yr | 0.98% |
| Charlotte, NC | $380,000 | $99,857/yr | 0.84% |
| Fresno, CA | $380,000 | $99,729/yr | 0.83% |
| Tampa, FL | $370,000 | $100,414/yr | 1.08% |
| Minneapolis, MN | $370,000 | $101,486/yr | 1.16% |
| Orlando, FL | $350,000 | $93,729/yr | 0.98% |
| Dallas, TX | $345,000 | $107,186/yr | 2.18% |
| Chicago, IL | $330,000 | $101,614/yr | 2.10% |
| Fort Worth, TX | $330,000 | $103,114/yr | 2.23% |
| Richmond, VA | $325,000 | $86,657/yr | 0.95% |
| Jacksonville, FL | $315,000 | $83,786/yr | 0.93% |
| Albuquerque, NM | $310,000 | $80,143/yr | 0.72% |
| Baltimore, MD | $300,000 | $81,557/yr | 1.09% |
| Houston, TX | $290,000 | $89,143/yr | 2.09% |
| Tucson, AZ | $290,000 | $74,229/yr | 0.65% |
| San Antonio, TX | $275,000 | $82,286/yr | 1.86% |
| Columbus, OH | $275,000 | $79,629/yr | 1.59% |
| Indianapolis, IN | $260,000 | $68,657/yr | 0.87% |
| Omaha, NE | $260,000 | $79,971/yr | 2.09% |
| Philadelphia, PA | $250,000 | $69,986/yr | 1.32% |
| New Orleans, LA | $250,000 | $65,271/yr | 0.79% |
| Kansas City, MO | $245,000 | $67,629/yr | 1.21% |
| Louisville, KY | $235,000 | $62,400/yr | 0.92% |
| El Paso, TX | $230,000 | $70,929/yr | 2.12% |
| Pittsburgh, PA | $225,000 | $64,843/yr | 1.55% |
| Milwaukee, WI | $220,000 | $68,229/yr | 2.17% |
| Oklahoma City, OK | $215,000 | $58,586/yr | 1.11% |
| St. Louis, MO | $200,000 | $55,886/yr | 1.31% |
| Memphis, TN | $195,000 | $54,643/yr | 1.33% |
How the income estimate is calculated
Each city uses the 28% front-end DTI rule: your total monthly housing payment (principal, interest, property taxes, and homeowners insurance — PITI) should not exceed 28% of gross monthly income. Estimates assume a 6.5% 30-year fixed mortgage and 20% down payment. Cities with high property tax rates require significantly more income even at the same home price — Austin and Dallas at ~2.2% vs Hawaii at ~0.28% is a meaningful difference on a $500,000 home.
Related tools you might need
Frequently asked questions
Spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt payments (housing + car + student loans + credit cards).
From our guides
All guides →How to Calculate Home Affordability: The 4 Rules Lenders Use
Home affordability is calculated using four ratios: the 28% front-end rule, the 36% back-end rule, the 43% DTI ceiling, and the 3x–5x income rule. Most buyers are constrained by their back-end DTI, not their income. A worked example shows exactly what you can borrow at $90,000 gross income with $500/month in existing debt.
How to Remove PMI: When It Cancels Automatically and How to Request It Early
PMI cancels automatically at 78% LTV but you can request removal at 80%. With appreciation, a new appraisal can eliminate PMI years earlier. At $1,200/year per $200,000 borrowed, removing PMI 5 years early saves $6,000. Here is the exact process, the lender rules, and when refinancing beats an appraisal.
Refinance Break-Even Calculator: How Long Until Refinancing Pays Off?
The refinance break-even is closing costs divided by monthly savings. On $9,000 in closing costs saving $225/month, break-even is 40 months. Refinance only if you stay past that point. This guide walks through the exact calculation, what counts as a closing cost, how a cash-out refi changes the math, and when break-even analysis does not apply.
Next logical step
Major purchase mapped. Now put your remaining surplus to work. See exactly how fast consistent investing compounds toward financial independence.
Compound Interest Calculator
See exactly when your investment crosses $100K, $500K, or $1M — with the formula shown step by step
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