🏠 Home Affordability Calculator

Find out how much house you can realistically afford based on your income and debts

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36%
Conservative (28%)Standard (36%)Aggressive (43%)
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Understanding Home Affordability: The 28/36 Rule

Lenders use the debt-to-income (DTI) ratio to determine how much you can borrow. The standard is the 28/36 rule:

  • Front-End Ratio (28%): Your total housing costs (PITI + HOA) should not exceed 28% of your gross monthly income.
  • Back-End Ratio (36%): Your total debt payments (housing + credit cards + car loans + student loans) should not exceed 36% of gross income.

Some lenders (especially FHA) allow back-end ratios up to 43-50%, but that pushes your budget to the limit.

Income Needed for Different Price Points

Home Price20% DownMonthly PITI*Income Needed (36% DTI)
$250,000$50,000$1,575$52,500
$400,000$80,000$2,520$84,000
$600,000$120,000$3,780$126,000
$800,000$160,000$5,040$168,000

*Assumes 6.5% rate, 30-yr fixed, 1.1% tax, $1,500/yr insurance.

Home Affordability FAQ

What salary do I need for a $400,000 house?
With 20% down and a 6.5% rate on a 30-year loan: PITI is about $2,520/month. Using the 28/36 rule, you need a gross income of approximately $90,000-$100,000/year. With lower down payment, you’d need higher income to cover PMI.
Can I afford a house making $60,000 a year?
With $60,000 gross income, the 28% front-end ratio allows $1,400/month for housing. With a 6.5% rate and 20% down, that translates to roughly a $220,000-$250,000 home. In lower-cost areas, this is still achievable.
What if I have student loans or car payments?
All monthly debt payments count against your DTI. If you have $800/month in other debts, that directly reduces how much mortgage you qualify for. Our calculator includes your monthly debts to give you a realistic number.
Does a larger down payment help me afford more house?
Yes, in two ways: (1) you borrow less, so monthly payments are lower, and (2) you avoid PMI with 20%+ down, freeing up ~$100-$400/month for a larger mortgage payment. Every $10,000 extra down reduces your monthly P&I by about $65.