Home Affordability Calculator

A home affordability calculator estimates the maximum home price you can qualify for based on your income, existing debts, down payment savings, and the mortgage interest rate. Lenders use two debt-to-income (DTI) ratios to set this limit: the front-end ratio caps your total housing payment at 28% of gross monthly income, and the back-end ratio caps all debt payments (housing plus existing obligations) at 36%. FHA loans use higher limits of 31% and 43% respectively. This calculator applies those rules and back-solves the home price from the resulting maximum monthly payment.

Calculation Mode

Loan Type

Gross Annual Income

$100,000.00

$20K/yr$500K/yr

$per year

Monthly Debt Payments

$0$5,000

$per month

Down Payment Savings

$0$300K

Interest Rate

Loan Term

Estimated Property Tax + Insurance

$0$1,500/mo

$per month

Maximum Affordable Home (28/36)

Maximum Home Price

$345,873.72

Limited by front-end DTI

Max Monthly Payment (PITI)

$2,333.33/mo

P&I: $1,933.33 + T&I: $400.00

Max Loan Amount

$305,873.72

+ $40,000.00 down payment

Front-End DTI

28.0%

(cap: 28%)

Back-End DTI

34.0%

(cap: 36%)

FHA Comparison (31/43 DTI Limits)

With FHA's higher DTI allowance, you could qualify for up to $385,426.43 (vs. $345,873.72 conventional). FHA requires a 3.5% minimum down payment and carries mortgage insurance premiums. Switch to FHA mode above to see full details.

Disclaimer: This estimate uses standard DTI guidelines and a fixed interest rate. Actual affordability depends on credit score, lender overlays, property type, and other factors. Consult a lender for a pre-approval.

How Much House Can I Afford on 100k Salary

With a $100,000 annual salary, your gross monthly income is $8,333. Under the conventional 28/36 rule, the maximum housing payment is 28% of that, or $2,333 per month. If you have $500 in existing monthly debts, the back-end cap allows $3,000 total debt, leaving $2,500 for housing. The lower of the two ($2,333) is the binding limit. After subtracting estimated property tax and insurance of roughly $400 per month, $1,933 remains for principal and interest.

$100,000 Salary Affordability (30-Year Fixed, 6.5%, $40K Down, $500/mo Debts)

Front-end cap: $2,333/mo PITI (28% of $8,333). Back-end cap: $2,500/mo (36% minus $500 debts). Limiting factor: front-end. Max P&I: $1,933/mo. Max loan: approximately $305,600. Max home price: approximately $345,600 (loan + $40,000 down). These figures assume 6.5% interest, 30-year term, and $400/mo in taxes and insurance.

Switching to FHA guidelines (31/43) at the same income raises the front-end cap to $2,583 and the back-end cap to $3,083, allowing a higher maximum payment and therefore a higher home price. The tradeoff is FHA mortgage insurance, which adds to the monthly cost. Use the calculator above with the FHA mode toggle to compare the two scenarios side by side.

Home Affordability Calculator with Debt

Existing debt is often the single largest factor that reduces how much house you can afford. Lenders count all recurring monthly obligations: auto loan payments, student loan payments, credit card minimums, personal loan payments, and court-ordered payments like alimony or child support. They do not count utilities, groceries, subscriptions, or the new housing payment itself (since that is what you are solving for).

At $100,000 annual income with 6.5% interest, 30-year term, $40,000 down, and $400/mo taxes and insurance, here is how different debt levels change the maximum home price:

Impact of Monthly Debts on Affordability ($100K Income, 28/36 Conventional)

$0 debts: Back-end cap $3,000/mo, not binding. Front-end $2,333/mo limits. Max price: ~$345,600. $500 debts: Back-end $2,500/mo, front-end $2,333/mo. Front-end limits. Max price: ~$345,600. $1,000 debts: Back-end $2,000/mo, now lower than front-end. Back-end limits. Max price: ~$282,200. $1,500 debts: Back-end $1,500/mo, well below front-end. Max price: ~$180,800. $2,000 debts: Back-end $1,000/mo. Only $600 left for P&I after taxes/insurance. Max price: ~$63,400. The drop from $0 to $2,000 in monthly debts reduces buying power by over $280,000 at this income level.

Paying down existing debts before applying for a mortgage is one of the most effective ways to increase your purchasing power. For a more detailed DTI analysis with front-end and back-end breakdowns against FHA, VA, and conventional thresholds, use the DTI Calculator.

How Much House Can I Afford FHA Calculator

FHA loans are insured by the Federal Housing Administration and are designed for borrowers who may not qualify for conventional financing. FHA uses a 31/43 DTI framework: the housing payment (PITI plus mortgage insurance) can reach 31% of gross monthly income, and total debt can reach 43%. With compensating factors such as a credit score above 620, cash reserves, or residual income above FHA thresholds, some lenders may approve DTI ratios as high as 50%.

Using the same $100,000 salary, $500 monthly debts, 6.5% rate, 30-year term, $40,000 down, and $400/mo taxes and insurance: the conventional 28/36 rule limits housing to $2,333/mo, producing a max price around $345,600. Switching to FHA 31/43 rules: the front-end cap rises to $2,583/mo and the back-end cap rises to $3,083/mo. The front-end remains the binding limit at $2,583. After subtracting $400 in taxes and insurance, $2,183 is available for P&I and mortgage insurance. Factoring in FHA MIP (roughly $177/mo at 0.55% annual on a $340K loan), the net P&I is about $2,006, supporting a max loan around $317,000 and a max home price around $357,000.

The FHA advantage is more pronounced for borrowers with moderate credit scores (580 to 680) who face higher conventional PMI rates, or those with higher existing debts that push them close to the 36% back-end cap on conventional loans. The FHA minimum down payment is 3.5% for borrowers with credit scores of 580 or above, which is lower than most conventional programs. Use the Down Payment Calculator to plan the cash needed for the FHA minimum.

House Affordability Calculator by Monthly Payment

If you already know the monthly payment you are comfortable with, you can work backward to find the home price that payment supports. The calculator above offers a "By Monthly Payment" mode for this purpose. Enter your target PITI payment, and the tool subtracts estimated taxes and insurance, then uses the present value of an annuity formula to determine the maximum loan amount at your chosen rate and term.

What Home Price Does $2,000/mo Buy? (6.5%, 30-Year, $40K Down, $400/mo T&I)

Available for P&I: $2,000 minus $400 taxes and insurance = $1,600. Max loan: approximately $253,200. Max home price: approximately $293,200 ($253,200 loan + $40,000 down). Your front-end DTI would be 24% on a $100,000 salary, and back-end DTI would be 30% with $500 in other debts. Both are well within conventional limits.

This reverse approach is useful when you have a firm monthly budget and want to know what price range to shop in. Keep in mind that the actual mortgage payment is only one part of housing costs. Budget for maintenance (rule of thumb: 1% of home value per year), HOA fees if applicable, and any special assessments. The payment-based mode in the calculator also shows the resulting DTI ratios so you can confirm the payment fits within lender guidelines.

How Much House Can I Afford with 80k Salary

An $80,000 annual salary translates to $6,667 in gross monthly income. Under the conventional 28/36 rule, the maximum housing payment is 28% of that, or $1,867 per month. With $500 in existing debts, the back-end cap allows $2,400 in total debt, leaving $1,900 for housing. The front-end limit of $1,867 is the binding constraint in this scenario.

$80,000 Salary Affordability (30-Year Fixed, 6.5%, $30K Down, $350/mo Debts, $350/mo T&I)

Front-end cap: $1,867/mo. Back-end cap: $2,050/mo (36% minus $350). Limiting factor: front-end. Max P&I: $1,517/mo. Max loan: approximately $239,800. Max home price: approximately $269,800. With FHA 31/43 rules, the front-end cap rises to $2,067, supporting a max home price around $306,500. The FHA premium adds roughly $150/mo in MIP, partially offsetting the higher DTI allowance.

At $80,000 income, reducing existing debts has an outsized impact because the back-end cap is lower in absolute dollars. Dropping from $500 to $0 in monthly debts frees $500 of capacity but may not change the result if the front-end cap remains the binding limit. The most effective levers at this income level are increasing the down payment (which reduces the loan amount and thus the P&I portion of PITI), shopping for a lower interest rate, or considering a less expensive market where property taxes are lower.

Frequently Asked Questions

What is the 28/36 rule for home affordability?

The 28/36 rule is a guideline many conventional lenders use to assess how much house you can afford. The front-end ratio (28%) says your total housing payment, including principal, interest, property taxes, and insurance (PITI), should not exceed 28% of your gross monthly income. The back-end ratio (36%) says your total monthly debt payments, including the new housing payment plus all existing debts like car loans, student loans, and credit card minimums, should not exceed 36% of gross monthly income. These are thresholds, not guarantees. Some lenders accept higher ratios with compensating factors like strong credit or large savings.

Does FHA use different DTI limits than conventional loans?

Yes. FHA loans typically allow a front-end DTI up to 31% and a back-end DTI up to 43%. In some cases, FHA lenders may approve back-end ratios above 43% with strong compensating factors such as a credit score above 580, cash reserves, or a low loan-to-value ratio. The higher limits mean FHA borrowers can often qualify for a larger loan amount than they could with conventional guidelines. However, FHA loans require mortgage insurance premiums (1.75% upfront plus annual MIP of 0.15% to 0.75%) and a minimum 3.5% down payment for borrowers with credit scores of 580 or above.

What is PITI and why does it matter for affordability?

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total monthly housing cost that lenders evaluate. Principal and interest are the loan payment itself, calculated from the loan amount, interest rate, and term. Property taxes vary by location and typically run 0.5% to 2.5% of the home value per year. Homeowner's insurance typically costs $80 to $200 per month depending on location, coverage, and deductible. If the down payment is below 20%, private mortgage insurance (PMI) is added on top of PITI. Lenders use the full PITI figure when applying the front-end DTI ratio.

How does my existing debt affect how much house I can afford?

Existing monthly debt payments reduce the amount of income available for housing under the back-end DTI cap. For example, with $100,000 annual gross income ($8,333/month), the 36% back-end cap allows $3,000 in total debt. If you already pay $1,200/month in car loans, student loans, and credit card minimums, the maximum housing payment drops to $1,800/month. Reducing or paying off existing debts before applying for a mortgage can meaningfully increase the home price you qualify for. A borrower with $500 in monthly debts can afford roughly $70,000 to $90,000 more in home price than a borrower with $1,500 in monthly debts at the same income level.

Can I afford more house with a larger down payment?

Yes, but the impact is smaller than most people expect. A larger down payment reduces the loan amount, which reduces the monthly principal and interest portion. However, the 28/36 DTI rule constrains affordability based on your income, not your cash. If you are already front-end limited (housing payment at 28% of income), a larger down payment will not increase the maximum price much because the payment cap stays the same. Where a larger down payment helps significantly is when it brings your LTV to 80% or below, eliminating PMI, or when it allows you to qualify for a lower interest rate, both of which improve the payment-to-price ratio.

Related Calculators

Browse all tools on the Home Buying Calculators hub. Once you know your max home price, use the Down Payment Calculator to see how different down payment percentages affect your loan amount and PMI status. If your down payment is below 20%, the PMI Calculator estimates the monthly insurance cost. For a detailed DTI analysis with visual thresholds, use the DTI Calculator. If you already own a home and want to tap equity, the HELOC Calculator shows your available credit line, and the Refinance Break-Even Calculator evaluates whether refinancing your current mortgage saves money.

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