Mortgage Affordability Calculator

Estimate the home price your income supports using the 28% housing guideline, your mortgage rate, loan term, and down payment.

Estimate how much house you can afford using income, down payment, and mortgage assumptions.

Monthly gross income

Mortgage interest rate

Loan term

years

Down payment

Max monthly payment

$2,520

Affordable loan amount

$398,691

Estimated home price

$498,691

Results are estimates for informational purposes only.

This estimate uses the 28% front-end ratio only and does not include taxes, insurance, HOA, or other debts.

How to use this calculator

How this affordability estimate works

Lenders often start with the 28% guideline: your monthly housing payment should be no more than about 28% of your gross (pre-tax) monthly income. This calculator takes 28% of the income you enter as your maximum monthly mortgage payment, then works backward to find the largest loan that payment can repay at your interest rate and term. Adding your down payment gives the estimated home price.

Working backward uses the same math as a mortgage payment, run in reverse. A 30-year loan at 6.5% costs about $6.32 a month for every $1,000 borrowed, so a $2,520 payment supports a loan of roughly $398,700.

Why your real budget is probably lower

The 28% guideline is meant to cover your whole housing payment: principal, interest, property tax, homeowners insurance, and any HOA dues or mortgage insurance. This calculator applies the full 28% to principal and interest, so it shows the upper end of what the guideline allows. If taxes and insurance add $500 a month, only $2,020 is left for the loan itself, which lowers the affordable loan from about $398,700 to about $319,600 at 6.5%.

Lenders also look at your total debt. A common limit is 36% of gross income for housing plus car loans, student loans, credit cards, and other monthly debt payments, though some loan programs allow more. If you already pay $900 a month toward debts on a $9,000 income, the 36% limit leaves $2,340 for housing, less than the 28% figure.

Being approved for a loan is not the same as the payment fitting your life. Childcare, retirement savings, and an emergency fund all compete with the mortgage, so check the payment against your actual monthly budget as well.

What moves the number most

Income sets the payment, and the interest rate decides how much loan that payment buys. With a $9,000 monthly income and $100,000 down, a 5.5% rate supports a home of about $543,800, while 7.5% supports about $460,400. That $83,000 swing comes from the rate alone.

A longer term lowers the payment per dollar borrowed, so it raises the affordable price, but you pay interest for longer. The same $2,520 payment supports about $398,700 over 30 years but only about $289,300 over 15 years. A larger down payment raises the price you can afford dollar for dollar, and reaching 20% down on a conventional loan avoids private mortgage insurance.

You can also review Mortgage Calculator and Rent vs Buy Calculator to compare scenarios.

Formula

Maximum monthly payment = gross monthly income × 0.28
Affordable loan = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate and n the number of payments
Estimated home price = affordable loan + down payment

Example: $9,000 monthly income

Gross monthly income: $9,000 ($108,000 a year). Maximum payment: $9,000 × 0.28 = $2,520.
At 6.5% for 30 years, a $2,520 payment repays a loan of about $398,691.
Add the $100,000 down payment for an estimated home price of about $498,691.
If property tax and insurance cost $500 a month, the loan budget falls to about $319,586 and the home price to about $419,586.

Home price by income

Estimates at a 6.5% rate, 30-year term, and $100,000 down payment, using 28% of gross monthly income for principal and interest.

Monthly gross income	Max monthly payment	Affordable loan amount	Estimated home price
$5,000	$1,400	$221,495	$321,495
$7,000	$1,960	$310,093	$410,093
$9,000	$2,520	$398,691	$498,691
$12,000	$3,360	$531,588	$631,588
$15,000	$4,200	$664,485	$764,485

Frequently asked questions

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

A $100,000 salary is about $8,333 a month before tax. At 28%, that allows a payment of about $2,333, which repays a loan of roughly $369,000 at 6.5% for 30 years before taxes and insurance. Add your down payment to get the home price, and enter your own rate above for a closer figure.

Is the 28% rule based on gross or take-home pay?

Gross pay, meaning income before taxes and deductions. That is how lenders measure it, but it can overstate what feels affordable, since take-home pay is often 20% to 30% lower. If the payment looks tight against your take-home pay, treat the result as a ceiling rather than a target.

Does this include property tax, insurance, and HOA dues?

No. The full 28% goes to principal and interest, which gives an upper-end estimate. Subtract your expected monthly taxes, insurance, and HOA dues from the maximum payment for a more realistic loan budget, or use the mortgage calculator to see the all-in monthly cost of a specific home.

What is the 28/36 rule?

It is a common lending guideline: spend no more than 28% of gross monthly income on housing and no more than 36% on all debt payments combined, including housing. Programs such as FHA loans can allow higher ratios, but staying near 28/36 leaves more room for savings and surprises.

How does a bigger down payment change what I can afford?

Each extra dollar down adds a dollar to the home price you can afford without raising the monthly payment. Reaching 20% down on a conventional loan also avoids private mortgage insurance, which lowers the monthly cost further.