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How Much House Can I Afford?

On $95,000 household income with typical debts, you can afford roughly a $340,000 home under the standard 28/36 rule.

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Click to load — tweak from there.

Inputs

Result

Estimated max home price

$315,765

Estimated max loan amount

$275,765

Max monthly housing payment

$2,217

Principal & interest portion

$1,743

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How to use this

  1. 1Enter annual household income ($).
  2. 2Enter other monthly debt payments ($).
  3. 3Enter down payment ($).
  4. 4Enter mortgage interest rate (%/yr).
  5. 5Enter loan term (years).
  6. 6Enter taxes + insurance (% of home value/yr).
  7. 7Read your estimated max home price on the right — it updates as you type.
  8. 8Hit Share to keep the scenario or send it to someone.

About this calculator

Mortgage lenders qualify borrowers using debt-to-income ratios: your total housing payment (principal, interest, taxes, insurance) generally shouldn't exceed 28% of gross monthly income, and your total debt payments including housing shouldn't exceed 36%. This calculator applies both caps, backs out the lower resulting monthly housing budget, and converts that into an estimated maximum loan amount and home price at your interest rate and down payment.

FormulaMax Housing Payment = min(28% × Gross Monthly Income, 36% × Gross Monthly Income − Other Debt). Loan Amount solved from payment via standard amortization formula. Home Price = Loan + Down Payment.

Worked example

Using the values the calculator loads with:

Inputs

  • Annual household income: 95000 $
  • Other monthly debt payments: 400 $
  • Down payment: 40000 $
  • Mortgage interest rate: 6.5 %/yr
  • Loan term: 30 years
  • Taxes + insurance: 1.8 % of home value/yr

Results

  • Estimated max home price: $315,765
  • Estimated max loan amount: $275,765
  • Max monthly housing payment: $2,217
  • Principal & interest portion: $1,743

What each field means

Inputs

Annual household income ($)
The annual household income used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
Other monthly debt payments ($)
The other monthly debt payments used in the calculation, measured in $. Starts at 400 $ so you have a working example on load.
Down payment ($)
The down payment used in the calculation, measured in $. Starts at 40000 $ so you have a working example on load.
Mortgage interest rate (%/yr)
The mortgage interest rate used in the calculation, measured in %/yr. Starts at 6.5 %/yr so you have a working example on load. Accepted range: 0–15 %/yr.
Loan term (years)
The loan term used in the calculation, measured in years. Starts at 30 years so you have a working example on load. Accepted range: 5–40 years.
Taxes + insurance (% of home value/yr)
The taxes + insurance used in the calculation, measured in % of home value/yr. Starts at 1.8 % of home value/yr so you have a working example on load. Accepted range: 0–5 % of home value/yr.

Results

Estimated max home price
Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Estimated max loan amount
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Max monthly housing payment
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Principal & interest portion
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

How much house can I afford?

On $95,000 income with $400 in other monthly debt, a $40,000 down payment, and a 6.5% rate, the 28/36 rule caps your housing payment around $2,020/month, which supports roughly a $335,000-$345,000 home price.

What is the 28/36 rule?

It's the standard lender guideline: housing costs at or below 28% of gross monthly income, and total debt (housing plus car loans, student loans, credit cards) at or below 36%.

Does this include property taxes and insurance?

Yes — the calculator estimates taxes and insurance as a percentage of home value and folds them into your housing payment cap alongside principal and interest.

Why is my affordable price lower than my bank's pre-approval?

Banks sometimes stretch to 43-45% back-end DTI on strong credit files, which raises the number but also raises your financial risk if income dips or rates reset on an ARM.

Accuracy and limitations

  • Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
  • Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
  • This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

Related tools

How Much Down Payment Do I Need?

For a $350,000 home with a 20% down payment goal, you need $70,000 down to avoid PMI.

How Much Rent Can I Afford?

On a $60,000 salary, the classic 30% rule puts your affordable rent around $1,500 a month.

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