Home Affordability Calculator — How Much House Can You Afford?

Find out how much house you can afford based on income, debts, down payment, and current mortgage rates. Free, instant results with DTI ratio breakdown.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

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Max Home Price

$380,500.00

Max Mortgage

$320,500.00

Monthly Payment

$2,499.57

Affordability Breakdown

Monthly Gross Income$8,333.33
Max Housing Payment (36% DTI)$2,500.00
Existing Monthly Debts- $500.00
Max Home Price$380,500.00
Down Payment- $60,000.00
Mortgage Amount$320,500.00
Principal & Interest$2,025.78
Property Tax$348.79
Insurance$125.00
Total Monthly Housing$2,499.57
Actual DTI35.99%

How Interest Rates Affect Your Budget

5.5%

$411,800.00

+$31,300.00

6.0%

$395,600.00

+$15,100.00

6.5%

$380,500.00

7.0%

$366,400.00

-$14,100.00

7.5%

$353,300.00

-$27,200.00

Use the Home Affordability Calculator — How Much House Can You Afford? above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Knowing your price ceiling before you start touring homes changes how you negotiate and what disappointments you avoid. Built for the 2026 housing market, this tool weighs more than your paycheck: it folds in your existing debts, the cash you have for a down payment, and prevailing mortgage rates to land on a realistic estimate of what you can carry.

At the heart of the math is the Debt-to-Income ratio, the same yardstick lenders reach for when sizing up a borrower. The calculation looks at front-end DTI, which counts housing costs alone, and back-end DTI, which adds in your other obligations. For conventional loans in 2026 the back-end figure usually needs to stay under 43%, though certain programs stretch higher. Paired with your down payment and an illustrative 2026 average 30-year fixed mortgage rate of 6.8%, that ratio sets your maximum affordable price.

Treat the result as a starting point rather than a promise from a lender. The recurring costs that sink budgets sit outside the loan payment: property taxes, which average 1.1% of home value in 2026; homeowner's insurance, roughly $1,800 a year on a typical home; and any HOA dues. Build a cushion for those line items and for the chance that rates move before you close.

Example: First-Time Buyer in 2026

  1. 1 Sarah, a first-time buyer in 2026, earns $90,000 annually. She has student loan payments of $300/month and a car payment of $250/month. She has saved a $40,000 down payment.
  2. 2 Based on a 2026 mortgage rate of 6.8%, a 43% DTI limit, and accounting for her existing debts, our calculator determines her maximum monthly housing payment. We then reverse-engineer this to find the corresponding home price given her down payment.
  3. 3 Sarah can afford a home up to approximately $395,000, with an estimated monthly mortgage payment (P&I) of around $2,300.
  4. 4 This includes a front-end DTI of 29% and a back-end DTI of 36%, both well within typical lender guidelines, giving her a solid foundation for her home search.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How much house can I afford on my salary?
Lenders typically approve a home price of 3-5 times your annual gross income. The key metric is your debt-to-income ratio, which should stay below 36% total (including the new mortgage) or 28% for housing costs alone.
What is the 28/36 rule for home buying?
The 28/36 rule says your monthly housing costs should not exceed 28% of gross monthly income, and total debt payments (housing plus all other debts) should not exceed 36%.
How much do I need for a down payment?
Conventional loans require as little as 3-5% down, FHA loans require 3.5%, and VA/USDA loans offer 0% down. However, putting 20% down avoids private mortgage insurance (PMI), which can save $100-300/month.

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