House Price Calculator
Find out exactly how much house you can afford based on your income, down payment, existing debts, and current mortgage rates — with five different affordability methods.
How to Use the House Price Calculator
- 1Enter your annual gross income and down payment amount. A larger down payment increases the home price you can afford and may eliminate the need for private mortgage insurance.
- 2Enter all existing monthly debt payments. High car loans student loans and credit card minimums reduce your qualifying loan amount and available home price.
- 3Enter the current mortgage rate your local property tax rate and estimated insurance. These are included in the monthly payment breakdown so you see your true all-in housing cost.
- 4Download the free PDF showing all five affordability methods and your complete monthly payment breakdown to share with your real estate agent or lender.
Example Calculation
Income $120,000 | Down $60,000 | Car $400 | Student $300 | Other $200 | Rate 6.5% | 30yr | Tax 1.2% | Insurance $150
- 28% Rule: Max Home ~$553,738 | Monthly ~$2,800
- 36% Rule: Max Home ~$477,000 | Monthly ~$2,400 (after debts)
- Recommended: ~$477,000
- Monthly Breakdown: Mortgage ~$2,636 + Tax ~$477 + Insurance $150 = ~$3,263
- DTI: ~38%
Frequently Asked Questions
How much house can I afford on my salary?
A common guideline is that your home price should be 3 to 5 times your annual gross income. On a $120,000 salary this suggests a home between $360,000 and $600,000. However the more precise method is to ensure your monthly housing costs including principal interest taxes and insurance stay below 28% of your gross monthly income. Your existing debts also matter significantly.
What is the 28/36 rule for home affordability?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income and your total debt payments including housing should not exceed 36%. The 28% front-end ratio covers principal interest property taxes and insurance. The 36% back-end ratio includes all monthly debts. This dual test is used by many lenders as the standard affordability benchmark.
How does my down payment affect how much house I can afford?
A larger down payment increases the home price you can afford in two ways. First it directly adds to the purchase price you can offer. Second a 20% down payment eliminates private mortgage insurance which typically costs 0.5% to 1.5% of the loan annually saving $200 to $500 per month on a $400,000 home.
What credit score do I need to buy a house?
For a conventional mortgage most lenders require a minimum credit score of 620 though 740 or higher gets the best rates. FHA loans are available with scores as low as 580 with 3.5% down. VA loans for veterans have no minimum set by the VA though lenders typically require 580 to 620. A higher credit score directly impacts your interest rate and therefore how much house you can afford.
What costs beyond the mortgage should I budget for?
Beyond your monthly payment budget for property taxes (0.5% to 2.5% of home value annually), homeowners insurance ($1,200 to $2,000 per year), PMI if down payment is less than 20% (0.5% to 1.5% of loan annually), HOA fees if applicable, and maintenance reserves (1% to 2% of home value per year). These additional costs can add $500 to $1,500 per month beyond your mortgage payment.