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

On a $100,000 annual salary with minimal debts, you could typically afford a home priced between $350,000 and $450,000 depending on your down payment, interest rate, and local property taxes. The 28/36 rule suggests a maximum monthly housing payment of about $2,333.

What is the 28/36 rule?

The 28/36 rule is a guideline suggesting you spend no more than 28% of gross monthly income on housing costs and no more than 36% on total debt including housing. Many lenders use this or similar ratios to determine loan eligibility.

Does my down payment affect how much home I can afford?

Yes, a larger down payment directly increases your purchasing power. It reduces the loan amount needed, may eliminate PMI, and can help you qualify for a better interest rate.

What debts count against my mortgage qualification?

Lenders count car payments, student loans, credit card minimum payments, personal loans, child support, and any other recurring monthly obligations. They do not typically count utilities, insurance, or subscriptions.

Affordability Calculator: How Much Home Can You Afford?

Find out the maximum home price you can comfortably afford based on your income, debts, down payment, and current interest rates. Set a realistic budget before you start house hunting.

Mortgage Affordability Calculator

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Income

Annual household income Monthly non-housing debt paymentsCar loans, credit cards, student loans, etc. Down payment

Loan assumptions

Loan term Interest rate (APR %)Editable (estimate only) Credit score

Housing costs & Qualification rules

Property tax (monthly) Homeowner's insurance (monthly) HOA fees (monthly) PMI / MI (monthly)

Auto estimates MI if down <20%. Max front-end DTI (%)

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Housing ÷ gross monthly income Max back-end DTI (%)

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(Housing + debts) ÷ gross monthly income ZIP Code (optional)Location label only Target monthly budget (optional override)Overrides DTI limits if set.

Estimated max home price

$0

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Max housing payment

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Based on DTI.

Estimated loan amount

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Price − down payment

P&I portion (at max)

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Housing minus taxes/fees/MI

Payment breakdown (at max)—

Estimates only. Affordability depends on underwriting, reserves, credit, property type, and local taxes/insurance.

What Is a Home Affordability Calculator?

A home affordability calculator estimates the maximum purchase price you can handle based on your financial situation. It factors in your gross monthly income, existing debts, available down payment, expected interest rate, property taxes, and insurance to determine a comfortable price range.

Key Inputs That Determine Affordability

Gross Annual Income

Your total household income before taxes. Lenders use this to calculate your debt-to-income ratio, which determines how much you can borrow.

Monthly Debts

Include car payments, student loans, credit card minimums, and other recurring obligations. Lower existing debt means you can qualify for a larger mortgage.

Down Payment

The cash you bring to closing. A larger down payment increases your buying power and may eliminate PMI. See our no-down-payment guide for zero-down options.

Interest Rate

Even small rate differences significantly impact affordability. Check our daily rates page for current market rates.

Property Tax & Insurance

These are added to your monthly payment. Rates vary by location — California averages about 0.75% of home value annually for property tax.

DTI Ratio

Most lenders prefer a total debt-to-income ratio under 43%. Use our DTI calculator to check where you stand.

How to Use Our Affordability Calculator

Enter Your Financial Details

Annual Income: Enter your total gross household income (before taxes).
Monthly Debts: Add up all recurring monthly obligations (car, student loans, credit cards, etc.).
Down Payment: Enter how much cash you have available for a down payment.
Interest Rate: Use today's rate from our rates page or your pre-approval rate.
Loan Term: Choose 30-year or 15-year fixed.
Property Tax Rate: Enter your area's annual tax rate (California avg: ~0.75%).
Insurance: Estimated monthly homeowner's insurance cost.

The 28/36 Rule

Most financial advisors recommend the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt (housing + other debts). This is a conservative guideline — some loan programs allow higher ratios, but staying within these limits helps ensure long-term financial stability.

Max Housing Payment = Gross Monthly Income x 0.28

Tips for Maximizing Affordability

Pay down existing debts before applying — every $100/month in eliminated debt adds roughly $15,000–$20,000 to your purchasing power. Improve your credit score to qualify for lower rates. Consider a first-time buyer program for down payment assistance. Shop multiple lenders to find the best rate.

Remember, what you can afford and what a lender will approve are not always the same. Budget conservatively to leave room for maintenance, emergencies, and lifestyle expenses.