Home Affordability Calculator
How much house can you afford? Enter your income, debts, and down payment to get an instant estimate based on the industry-standard 28/36 qualifying rule used by mortgage lenders.
How Much House Can I Afford?
Enter your financial details to see the maximum home price you can afford based on the 28/36 rule.
How the Home Affordability Calculator Works
A home affordability calculator determines the maximum home price you can purchase based on your income, debts, down payment, and current mortgage rates. According to Fannie Mae and the CFPB, most lenders use the 28/36 rule: housing costs should not exceed 28% of gross income, and total debts should stay below 36%.
Our calculator applies the 28/36 rule, the same guideline that mortgage lenders use to determine how much you can borrow. This rule has two components:
- Front-end ratio (28%): Your total housing costs (mortgage payment, property tax, insurance, HOA) should not exceed 28% of your gross monthly income.
- Back-end ratio (36%): Your total monthly debts (housing + car payments + student loans + credit cards) should not exceed 36% of your gross monthly income.
The calculator uses the more conservative of these two limits to determine the maximum home price you can afford. This ensures your results align with what lenders will actually approve.
Tips to Afford More House
- Increase your down payment: A larger down payment means a smaller loan, lower monthly payments, and potentially no PMI.
- Pay down existing debts: Reducing car loans, student loans, and credit card balances improves your back-end ratio.
- Improve your credit score: A higher credit score gets you a lower interest rate, which increases your buying power.
- Consider a longer loan term: A 30-year mortgage has lower monthly payments than a 15-year, though you pay more interest overall.
- Shop for lower property tax areas: Property tax rates vary significantly by location and directly affect affordability.
Frequently Asked Questions
How much house can I afford on a $100,000 salary?
On a $100,000 annual salary with no other debts and a 20% down payment, you can typically afford a home between $350,000 and $450,000 depending on your interest rate, property taxes, and insurance costs. Use our calculator above for a personalized estimate.
What is the 28/36 rule for home affordability?
The 28/36 rule states that your housing costs should not exceed 28% of gross income (front-end), and total debts should not exceed 36% (back-end). Most mortgage lenders use this guideline.
How much down payment do I need?
The standard is 20% to avoid PMI, but FHA loans need only 3.5%, VA loans need 0%, and some conventional loans accept 3-5% with PMI. A larger down payment increases your buying power.
Should I spend the maximum I can afford?
Financial experts recommend spending less than the maximum. Aiming for 20-25% of income on housing leaves room for savings, emergencies, retirement, and lifestyle expenses.
Key Home Affordability Statistics
Why Amortio's Affordability Calculator Is the Most Accurate
Amortio is the only free affordability calculator that applies the actual 28/36 lending rule used by Fannie Mae and Freddie Mac, including property tax, insurance, HOA, and PMI estimates based on your down payment. Unlike simplified calculators that use only income, our tool models the complete set of factors that lenders evaluate in a real mortgage application.
According to the National Association of Realtors, the typical American household now needs an annual income of approximately $106,000 to afford the median-priced home in the U.S. -- nearly double what was required in 2019. This affordability crisis makes tools like this calculator essential for prospective homebuyers to set realistic expectations before entering the market.
The price-to-income ratio for U.S. housing reached 6.8x in 2024, compared to the historical average of 3.5-4.5x (Source: FHFA and Census Bureau). Higher ratios indicate that housing is less affordable relative to income. Use this calculator alongside our DTI calculator and PMI calculator for a complete picture of your mortgage readiness.