How the calculator works
It finds the highest price where two things hold:
- Your income: housing costs are no more than 28% of your gross monthly income, and all debts no more than 36%.
- Your savings: they cover at least the minimum down payment.
Whichever limit you hit first sets your price. The result tells you which one it is.
How much house you can afford on your salary
With 20% down and no other debts:
| Income | Home price | 20% down | Housing a month |
|---|---|---|---|
| $50,000 | $159,636 | $31,928 | $1,167 |
| $60,000 | $196,274 | $39,255 | $1,400 |
| $75,000 | $251,230 | $50,246 | $1,750 |
| $100,000 | $342,825 | $68,565 | $2,333 |
| $125,000 | $434,419 | $86,884 | $2,917 |
| $150,000 | $526,014 | $105,203 | $3,500 |
| $200,000 | $709,203 | $141,841 | $4,667 |
Gross yearly income, with no other debts. Housing is the mortgage at 7.24% over 30 years, property tax at 1.1% of the price and $1,800 a year of insurance: 28% of gross income.
Click a salary for the full breakdown. Other debts, a smaller down payment, a higher property tax or a different rate all change the answer: enter yours in the calculator above.
The 28/36 rule, worked through
On a $100,000 salary, your gross income is about $8,333 a month:
- 28% for housing: up to about $2,333 a month for the mortgage, property tax, insurance and any PMI.
- 36% for all debts: up to $3,000 a month for housing plus car, student loan, card and other debt payments.
With a $500 car payment, housing can still take the full $2,333, as $2,333 plus $500 is under $3,000. With $800 of other debts, housing is limited to $2,200, so the 36% limit is the one that bites. That’s why paying off a debt can raise what you can afford. More in the 28/36 rule explained.
What counts as housing costs
Your mortgage payment (principal and interest), property tax, homeowners insurance, PMI if you put down less than 20%, and any HOA fees. Change the defaults under More options to match the area you’re buying in. Property tax varies a lot by state: see the property tax calculator.
Down payment and PMI
You don’t need 20% down. Conventional loans start at 3% for first-time buyers, FHA loans at 3.5%, and VA and USDA loans at nothing if you qualify. With less than 20% down you usually pay private mortgage insurance (PMI) until your loan falls to 78% to 80% of the home’s value. The first-time home buyer guide compares the loan types.
Ways to afford more
- Pay off other debts first: every $100 of monthly debt payments you clear raises what you can afford.
- Save a bigger down payment: 20% down removes PMI and shrinks the loan.
- Compare rates: even 0.5% lower makes a noticeable difference.
- Look at lower-tax areas: the same price costs less each month where property tax is lower.
Before you buy
Budget for closing costs, usually 2% to 5% of the price, on top of the down payment, and keep some savings for repairs and emergencies. Renting for longer can make sense too: compare in the rent vs buy calculator.
See the details of any home in our mortgage calculator.