About the House Affordability Calculator
House Affordability Calculator helps estimate the key numbers involved in mortgage & real estate decisions. It is designed for quick scenario comparison: enter a realistic set of values, calculate the result, then change one assumption at a time to see what has the greatest effect. Unlike a static table, the result responds to your inputs and keeps the calculation in your browser. Amounts are displayed in U.S. dollars for consistency, but the mathematical formulas can be used with another currency when every monetary input uses that same currency.
How to use this calculator
Enter values that match your situation and select Calculate result. Review the main result and its supporting figures, then change one input at a time to compare scenarios. Results are rounded for readability while the calculation retains additional precision internally.
Information you will need
- Income
- Debt payments
- Housing cost
How the calculation works
Compares monthly obligations to gross income. Read the primary result together with the supporting values rather than focusing on one number alone. A useful estimate should make its assumptions visible. If the answer looks surprising, verify the unit, rate, time period, and whether the entered value is gross or net. Run a conservative and an optimistic scenario to understand the range of possible outcomes.
Formula or method
DTI = (housing + debt) / income × 100.
Worked example
$1,800 housing + $1,500 debt on $6,000 income = 55%.
The example is illustrative rather than a recommendation. Use your own verified values and keep all monetary or measurement units consistent. When comparing alternatives, save or note each result so the assumptions do not become mixed.
How to interpret the result
The primary output answers the main question posed by the house affordability calculator, while the additional cards provide context. A result with many decimal places is not necessarily more certain. The displayed precision makes comparison easier, but uncertainty in the inputs can be larger than the rounding difference.
Compare the result with a second scenario using a less favorable rate, return, cost, or time period. This sensitivity check often provides more useful planning information than one best-case projection.
Limitations and important notes
The house affordability calculator is a planning tool, not a quote, filing calculation, lending decision, or promise of future performance. It does not automatically retrieve live market rates or apply every fee, tax bracket, program rule, product limit, or state law. Rules for products such as FHA, VA, Social Security, retirement accounts, and taxes can change. Confirm time-sensitive values with the lender, plan administrator, IRS, SSA, or another relevant authority before acting.
Frequently asked questions
How much house can I afford with a $100,000 salary?
Using the 28/36 rule with a $100,000 salary ($8,333/month gross), your maximum housing payment is about $2,333. At typical rates, this supports a home price of roughly $300,000-$400,000 depending on your down payment, debts, and local property taxes. A larger down payment lowers your monthly cost and raises the price you can afford. This calculator lets you adjust each input to find your realistic price range.
What is the 28/36 rule for home affordability?
The 28/36 rule states your housing costs (mortgage, taxes, insurance) should not exceed 28% of gross monthly income, and total debt payments (housing plus car loans, credit cards, student loans) should not exceed 36%. It is a widely used guideline, not a guarantee of approval. Lenders use it alongside credit score and down payment. Staying within these limits helps ensure you can comfortably manage the payment alongside other expenses.
How do property taxes affect what I can afford?
Property taxes vary widely by location, from about 0.5% to over 2% of home value annually, and they increase your monthly housing payment. A $400,000 home in a high-tax area may cost $600+/month in taxes versus $150/month in a low-tax area. Because taxes are part of your housing payment, homes in high-tax counties support a lower purchase price for the same monthly budget. Factor in local rates before settling on a price range.
How much house can I afford with a $60,000 salary?
With a $60,000 salary ($5,000/month gross), the 28% guideline caps your housing payment at $1,400. After property taxes, insurance, and a typical mortgage rate, that supports a home in the roughly $180,000-$280,000 range depending on your down payment and local taxes. If you also carry car or student loan payments, your affordable price drops because lenders cap total debt around 36-43% of income. This calculator factors all of it in.
What is the maximum DTI for mortgage approval?
Lenders generally want your total debt-to-income ratio at or below 43%, though many prefer 36% or less. Conventional loans typically allow up to 36% for the best rates, while FHA can stretch to 43-50% with compensating factors. Your DTI compares all monthly debts (housing, car, credit cards, student loans) to gross income. A lower DTI qualifies you for better rates, so paying down debt before house hunting can meaningfully raise your price range.
Should I get pre-approved before buying a home?
Yes. Pre-approval gives you a written estimate of how much a lender will lend you based on a full credit check and income verification. It strengthens your offer when competing with other buyers and sets a realistic price ceiling so you shop within budget. Pre-approval typically lasts 60-90 days. Keep in mind lenders approve you for the maximum, but you do not have to spend it; choose a payment you are comfortable with.
How much of my income should go to my mortgage payment?
Most financial advisors recommend keeping your housing payment at or below 28% of gross monthly income, though some buyers stretch to 30-33% in high-cost markets. On a $7,000 monthly income, 28% equals $1,960. Stretching beyond that leaves less room for savings, emergencies, and discretionary spending. A more conservative approach uses 28% of take-home pay. This calculator compares both methods so you can see the difference in your price range.