How much house you can afford from income, debts, down payment, rate, tax and insurance
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 5 Oct 2026.A household earning $100,000 a year with $500 of other monthly debts and $40,000 down can afford a home of about $320,462 under the 28/36 rule, at 6.5% for 30 years with 1.1% property tax, $1,800 insurance and 0.5% PMI. Fannie Mae's 36% total limit allows about $342,237.
Rates and rules read from the sources listed on this page (the earliest on 5 Oct 2026); they may have changed since.
Enter your gross yearly income and the monthly payments on your other debts.
Enter your down payment, the mortgage rate and the term.
Enter the property tax rate, insurance, HOA dues and PMI rate for the area and loan.
Pick a debt-to-income guideline: the 28/36 rule or a Fannie Mae limit.
Read the highest home price and the monthly payment it brings, split line by line.
This calculator works backwards from your income to the highest home price you can carry. It adds up everything a lender counts in the monthly housing cost, then finds the price at which that cost just fits inside a debt-to-income limit.
The monthly cost. Principal and interest on the loan (price less down payment), property tax as a percent of the price, homeowners insurance, HOA dues and private mortgage insurance. PMI is charged while the loan is above 80% of the price, which is when a borrower can usually ask to cancel it under the Homeowners Protection Act. Because PMI switches on above 80%, a price exactly five times your down payment is sometimes the best you can do without it, and the page shows when that happens.
The limits. Debt-to-income is the monthly cost, or the cost plus all other debt payments, as a share of gross monthly income. The 28/36 rule of thumb caps housing at 28% and all debt at 36%. Fannie Mae's Selling Guide (B3-6-02) sets no housing ratio but caps total debt at 36% for a manually underwritten loan, up to 45% with the required credit score and reserves, and 50% for loans run through its Desktop Underwriter. Pick one, or type your own limits. FHA loans have their own ratios; use the FHA Loan Calculator for that program's insurance premiums.
What to enter. Every cost is yours to set: rates, tax and insurance vary by lender, county and house. The defaults are examples. Count every monthly debt payment a credit report would show, such as car, student loan and card minimums, but not utilities or groceries.
What it does not do. It does not check credit, reserves, closing costs or the down payment a loan program requires, and qualifying for a payment does not make it comfortable. Lenders round and treat some debts differently, so their figure can differ. The currency setting changes only the symbol.
On $100,000 a year with $500 of other monthly debts and $40,000 down, at 6.5% for 30 years with 1.1% property tax, $1,800 insurance and 0.5% PMI, the 28/36 rule allows about $320,462. Fannie Mae's 36% total limit allows about $342,237, and its 45% limit about $440,225. Lower rates or debts raise those figures.
The 28/36 rule is a rule of thumb, not a lender requirement: spend no more than 28% of gross monthly income on housing, meaning the mortgage payment, property tax, insurance, HOA dues and PMI, and no more than 36% on housing plus all other debts. On $8,333 a month that is $2,333 and $3,000.
Fannie Mae's Selling Guide, section B3-6-02, caps the total debt-to-income ratio at 36% of stable monthly income for manually underwritten loans, or up to 45% when the borrower meets its credit score and reserve requirements. Loans run through Desktop Underwriter can reach 50%. Fannie Mae sets no separate housing ratio.
Lenders count recurring monthly payments that appear on a credit report or a court order: car loans and leases, student loans, credit card minimum payments, personal loans, child support and alimony. Utilities, phone bills, insurance other than the home's, groceries and other living costs are not counted, although they still have to be paid.
Private mortgage insurance adds a monthly cost while the loan is above 80% of the price, so it lowers the price you can afford with a small down payment. At 0.5% a year on a $280,462 loan it is $116.86 a month. Putting 20% down removes it, which is why the calculator shows the price where the loan is exactly 80%.
No. Closing costs, often a few percent of the price, and the cash reserves some loans require are not included, and the down payment is assumed to be cash you already have. The calculator also does not check credit scores or a loan program's minimum down payment, so treat the result as a ceiling to discuss with a lender.
Rates and rules change; check the source before you rely on a figure.
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Also works as: Mortgage Affordability Calculator · How Much House Can I Afford?.
Same job, other tools: VA Mortgage Calculator – Full VA house payment with zero down: principal, interest, property tax and insurance · Down Payment Calculator – How the size of your down payment changes the loan, the monthly payment and PMI · PMI Calculator – Monthly PMI on a conventional loan and the month it ends under the 78% and 80% rules · FHA MIP Calculator – Upfront and annual FHA mortgage insurance, and whether it lasts 11 years or the whole loan.
On the related tools: CLTV Calculator – Combined loan-to-value and HCLTV from your mortgage, second loans and credit line.
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