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How to use the Home Affordability Calculator
- 1Enter your gross household income and monthly debt payments.
- 2Add your down payment, mortgage rate and state for property tax.
- 3Pick a budget rule to see the maximum home price and its monthly cost.
The 28/36 rule
Most lenders want your total housing payment (principal, interest, property tax, insurance, PMI and HOA) to stay under 28% of your gross monthly income, and all your debt payments together under 36%. The calculator finds the highest price that meets both limits.
Example: with a $100,000 income you earn $8,333 a month, so housing can be up to $2,333. If you already pay $400 a month on a car loan, the 36% limit ($3,000) leaves $2,600 for housing, so the 28% limit is the one that applies.
What lowers how much you can afford
- Higher interest rates: each extra percentage point cuts the price you can afford by roughly 10%.
- High property tax states such as New Jersey or Illinois, where tax can be 2% of the home value a year.
- Existing debts like car payments and student loans, which use up your 36% limit.
- Putting less than 20% down, which adds private mortgage insurance (PMI).
Sources & review
Figures last checked in October 2026 against the official sources below. Standard amortization formula; property tax uses each state's average effective rate from the Tax Foundation.
- Tax Foundation: Property Taxes by State and County, 2026
- Consumer Financial Protection Bureau: Buying a house
Results are estimates for general information, not financial, tax or legal advice. How we check our tools
Frequently asked questions
How much house can I afford with a $100,000 salary?
Around $350,000–$400,000 with 20% down at a 6.5% rate and average property tax, if you have few other debts. High property taxes, HOA fees or a car loan lower that number; use the calculator with your own figures.
Should I borrow the maximum the bank offers?
Not necessarily. Lenders can approve debt-to-income ratios of 43% or more, but a payment near 25% of gross income leaves room for savings, repairs and emergencies. The comfortable setting uses that tighter limit.
How much do I need for closing costs?
Usually 2–5% of the purchase price, on top of your down payment. Keep an emergency fund as well.