RateHerald

No link on RateHerald pays us today. When some do, they'll say so, and they'll never change a ranking. How we make money

Home Affordability Calculator

The home price your income supports under the 28/36 guideline lenders use, counting your other debts, down payment, taxes and insurance, at this week's average rate.

On $100,000 a year with $50,000 down, you can afford about $312,601 at 7.28%: a $2,333 monthly payment including tax and insurance. The limit here is housing costs at 28% of your gross income.

Home price you can afford
$312,601
Monthly housing payment
$2,333
Loan
$262,601
Stretch (36% / 43%)
$394,986

This week's mortgage rates →

Affordable home price by income and down payment ($400 of other debts, 7%, 1% tax, $2,000 insurance)

Income$20,000 down$50,000 down$100,000 down
$60,000$173,949$209,178$253,613
$80,000$232,999$259,835$315,948
$100,000$292,048$318,884$378,284
$150,000$439,671$466,507$511,235
$200,000$587,293$614,130$658,858

How this calculator works

The 28/36 guideline: housing costs (principal, interest, tax, insurance, PMI and HOA) up to 28% of gross monthly income, and all debt payments together up to 36%. The calculator finds the highest price that meets both.

The stretch figure uses 36% and 43%, closer to the most many lenders approve with strong credit or compensating factors.

What it assumes

  • Lenders also weigh credit score, savings and job history, and loan programs set their own limits (FHA, VA and others allow higher ratios).
  • Closing costs, usually 2% to 5% of the loan, and moving costs come on top of the down payment.

Questions people ask

How much house can I afford on $100,000 a year?

About $318,884 with $50,000 down and $400 of other monthly debts, at 7% with typical tax and insurance. More down payment or fewer debts raise it.

What is the 28/36 rule?

A lending guideline: spend no more than 28% of gross monthly income on housing and no more than 36% on all debts, housing included.

Can I afford more than the calculator says?

Lenders may approve debt-to-income ratios above 36%, sometimes up to 45% or 50%, but a higher payment leaves less room for savings and surprises.

How much should I put down?

Twenty percent avoids PMI on a conventional loan, but many buyers put down 3% to 10%; FHA loans allow 3.5%. A smaller down payment means a bigger loan and PMI until you reach 20% equity.

Related calculators

  • Mortgage CalculatorYour full monthly mortgage payment: principal and interest, property tax, insurance, PMI and HOA dues, at this week's average rate, with a yearly amortization schedule.
  • Rent vs Buy CalculatorWhether buying or renting leaves you better off after the years you plan to stay, counting mortgage interest, tax, upkeep, selling costs and what a renter earns investing the down payment.
  • Paycheck CalculatorWhat you take home from each paycheck after federal income tax, Social Security, Medicare and state income tax, with 2026 tax rates for every state.

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

Embed this calculator on your site

Free to use. Copy this code; the link back is appreciated, not required.