House affordability calculator
A home price range that starts from your income.
Home price in range
$357,312
| Maximum housing budget per month | |
| Loan amount | |
| Principal and interest per month | |
| Property tax per month | |
| Insurance per month | |
| HOA per month |
The 28/36 guideline, in plain words
Lenders have long used two ratios to judge a mortgage application. Housing costs (principal, interest, tax, insurance and HOA together) should stay near or below 28% of gross monthly income. And all debts together, housing included, should stay near or below 36%. This calculator applies both and uses whichever gives the smaller housing budget, because that is the one a lender will bind you by. On $100,000 of income, the 28% line allows about $2,333 a month for housing; carrying $400 of other monthly debts pulls the 36% line down to about $2,600, so the 28% line governs.
From that monthly budget the calculator works backwards. It sets aside the tax, insurance and HOA the home itself will demand, then asks what loan the rest supports at your rate and term, and adds your down payment to reach a price. That order matters: in a high-tax state, the same income supports a cheaper house, because more of the budget is consumed before the loan gets a dollar.
Treat the result as a ceiling, not a target. The guideline ignores childcare, savings goals and the simple fact that a home also needs maintenance, commonly estimated near 1% of its price a year. Many buyers are comfortable well below the number a lender would approve.
Frequently asked questions
What is the 28/36 rule?
A long-standing lender guideline: housing costs should stay under 28% of gross monthly income, and all debts together under 36%. On a $100,000 income, that caps housing at about $2,333 a month before other debts are counted.
How much house can I afford on a $100,000 salary?
Using the defaults here ($400 a month of other debts, $60,000 down, 6.5% over 30 years, 1.1% property tax), the 28/36 rule supports a price of roughly $357,000, with principal, tax and insurance landing just under the $2,333 monthly budget.
Is the affordability figure a target to spend up to?
No. It is a lender ceiling based on gross income, before food, childcare, savings or surprises. Many buyers are better served well under it; treat the number as the most a lender would entertain, not a recommendation.
Related calculators
Estimates only. Lender rules, taxes and insurance vary; approval also depends on credit and reserves. This tool is not financial advice.