Finance · Quick Answer

How much house can I afford?

The 28/36 rule: spend no more than 28% of gross monthly income on housing and no more than 36% on total debt. For a $100K income, that's about $2,333/month for housing, roughly a $330,000 home at today's rates.

The 28/36 rule

Lenders and financial planners use two ceilings:

28% of gross income → maximum monthly housing cost (principal + interest + taxes + insurance + HOA)
36% of gross income → maximum total debt payments (housing + car + student loans + credit cards)

Quick math

At $100,000 gross annual income:

Gross monthly: $8,333
28% housing cap: $2,333/month
At 7% interest over 30 years with 20% down, that supports ~$330,000 home price
If existing debt already consumes 10% of income, housing budget drops

What the full affordability calculation includes

Down payment (target 20% to avoid PMI)
Closing costs (2-5% of purchase price)
Property taxes (varies by state, 0.3%-2.5% annually)
Homeowner's insurance
HOA fees if applicable
Ongoing maintenance (budget ~1% of home value/year)

Lenders focus on DTI, but your real affordability depends on your whole budget, not just what a bank will approve.

Run the numbers

All calculators →

Mortgage Affordability Calculator

Find out how much house you can afford based on your income, debts, and down payment.

Mortgage Payment Calculator

Calculate your monthly mortgage payment including principal and interest. See total cost over the life of your loan.

Debt-to-Income Ratio Calculator

Calculate your DTI ratio, a key metric lenders use to evaluate loan applications.