Before you start house hunting, you need to know one number: how much house can you actually afford? Our Mortgage Affordability Calculator uses your income, debt, down payment, and current interest rates to tell you the maximum home price you can comfortably afford — and the monthly payment that comes with it.
Mortgage Affordability Calculator
Mortgage Affordability Calculator
How Much House Can You Afford? The Rules
Lenders use two key affordability guidelines:
- 28% front-end rule: Your housing costs (mortgage P&I + property taxes + insurance) should not exceed 28% of your gross monthly income
- 36% back-end rule: All monthly debts combined (housing + car loans + student loans + credit cards) should not exceed 36% of gross monthly income
Our calculator uses the 36% back-end rule, which is the binding constraint for most buyers with existing debt.
Home Affordability by Income (2026 Estimates)
| Annual Income | No Other Debt | $500/mo Debt | $1,000/mo Debt |
|---|---|---|---|
| $60,000 | ~$230,000 | ~$155,000 | ~$80,000 |
| $80,000 | ~$310,000 | ~$235,000 | ~$160,000 |
| $100,000 | ~$390,000 | ~$315,000 | ~$240,000 |
| $150,000 | ~$590,000 | ~$515,000 | ~$440,000 |
Estimates based on 6.8% rate, 30-year term, 20% down, 1.1% property tax, 36% DTI limit
Hidden Costs of Homeownership
Your mortgage payment is just one part of the true cost of owning a home. Budget for these additional expenses:
- Property taxes: 0.5–2.5% of home value annually ($3,000–$15,000/year on a $600K home)
- Homeowner’s insurance: $1,000–$3,000/year depending on location and coverage
- PMI (if less than 20% down): 0.5–1.5% of loan amount annually — until you reach 20% equity
- HOA fees: $0–$1,000+/month depending on community
- Maintenance and repairs: Budget 1–2% of home value per year ($6,000–$12,000 on a $600K home)
- Utilities: Often 30–50% higher than renting an apartment of similar size
Down Payment Guide
- 3% down: Conventional loan with PMI (first-time buyer programs)
- 3.5% down: FHA loan minimum (credit score 580+)
- 10% down: Lower PMI; more equity from day one
- 20% down: No PMI required; best rates; lower monthly payments
Frequently Asked Questions
What credit score do I need to buy a house?
Minimum credit scores: FHA loan = 580 (3.5% down) or 500 (10% down). Conventional loan = 620 minimum; 740+ gets the best rates. VA loans have no minimum score set by VA, but lenders typically require 620+.
Should I buy the most house I can afford?
Financial advisors generally recommend buying at 80–90% of your maximum affordability, not at the limit. This leaves buffer for job changes, repairs, and interest rate increases if you have an ARM. Being “house poor” — spending so much on housing you can’t afford anything else — is a common financial trap.
How much do I need saved before buying a house?
Beyond your down payment, budget for: closing costs (2–5% of loan amount), 3–6 month emergency fund, and first-year maintenance reserve (~1% of home price). On a $400,000 home with 10% down, that’s $40,000 down + $10,000–$20,000 in closing/reserves = $50,000–$60,000 total savings needed.