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How Much House Can I Afford? Home Affordability Calculator

How much house you can afford depends on four things: how much you earn, how much you already owe each month, how much you can put down, and the mortgage rate. Lenders turn the first two into two limits. The housing payment should stay under about 28% of your gross monthly income, and your housing payment plus all your other debts under about 36%. This calculator applies both limits, takes the smaller one as your monthly budget and solves for the highest home price that fits.
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The monthly payment it checks is the real one, not just principal and interest: it adds property tax, homeowners insurance, private mortgage insurance (PMI) when you put down less than 20%, and HOA dues. Enter your down payment as a percent of the price or as the dollars you have saved, and change the rate, term, tax and insurance to match your area. You can also switch the limits to 31/43, the FHA benchmark, or a stretch 36/45 to see how much more a lender might approve.
The result is a planning estimate. Lenders look at your credit score, employment history and reserves too, and being approved for an amount is not the same as being comfortable paying it. Compare the payment with your take-home pay and leave room for maintenance, utilities and savings.
Gross income of everyone on the loan
Car loans, student loans, credit card minimums and other loans. Do not include rent, utilities or groceries
Under 20% usually adds private mortgage insurance (PMI)
Freddie Mac's weekly average for a 30-year fixed was 7.40% on October 15, 2026. Your rate depends on your credit and the lender
Varies a lot by state and county. About 1% is a common planning figure
Standard: 0.5
Charged only when the down payment is under 20%. It often runs 0.3% to 1.5% of the loan
Standard: 0
Housing payment as a share of gross monthly income. 28% is the conservative rule
Housing plus all other debts. 36% is conservative; 43% is the usual upper limit
How cautious:
Down payment:
Income:

Detailed Breakdown

12 metrics
PRIMARY RESULT
$218,347.00
Home Price You Can Afford
Monthly Housing Payment
$1,750.00
Principal & Interest
$1,360.61
Property Tax
$200.15
Homeowners Insurance
$90.98
Mortgage Insurance (PMI)
$98.26
Loan Amount
$196,512.30
Down Payment
$21,835 (10.0% of the price)
Housing Payment as Share of Income
28.0%
All Debts as Share of Income
34.4%
What Sets Your Limit
Housing limit: 28.0% of income
Cash Needed at Closing (Down Payment + 3% Costs)
$28,385.11

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In-Depth Guide

How Much House Can I Afford on a $75,000 Salary in 2026?

On a $75,000 salary, most buyers can comfortably afford a home between roughly $225,000 and $265,000 in 2026. Here is the payment math, the lender rules, and how your down payment and interest rate move the number.

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When to Use This Calculator

Everyday financial situations where this tool gives you fast, accurate clarity:

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Set a Home Budget Before You Shop

Know the price range that fits your income and debts before you tour homes.

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See What the Rate Does

Check how much a point of interest changes the price you can afford.

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Compare Down Payments

See how 5%, 10% or 20% down changes the price, PMI and cash needed.

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Test Lender Limits

Compare the conservative 28/36 rule with 31/43 and a stretch scenario.

Calculation Formula

Standard Method
Monthly income = Annual income ÷ 12
Housing limit = Housing % (default 28%) × Monthly income
Total debt limit = Total debt % (default 36%) × Monthly income − Other monthly debts
Monthly budget = the smaller of the two limits
Payment = Principal & interest + Property tax + Insurance + PMI + HOA
Principal & interest = Loan × r ÷ (1 − (1 + r)^−n), with r = rate ÷ 12 and n = years × 12
Property tax and insurance = Price × yearly rate ÷ 12
PMI = Loan × yearly PMI rate ÷ 12, only when the down payment is under 20% of the price
Because the payment grows in a straight line with the price, the calculator solves for the largest price whose payment equals your budget, handling the point where PMI disappears at 20% down. The 28/36 rule is a common conservative guideline, and 31/43 is the standard FHA benchmark. Lenders can approve more in some cases, but what they approve is a ceiling, not a recommendation.
Benchmark Example:
A household earning $75,000 with $400 a month of other debts, 10% down, a 7.4% 30-year rate, property tax of 1.1% and insurance of 0.5% a year:
• Monthly income: $75,000 ÷ 12 = $6,250
• Housing limit: 28% × $6,250 = $1,750
• Total debt limit: 36% × $6,250 − $400 = $1,850, so the housing limit of $1,750 is the smaller one
• Highest price: about $218,347, with a loan of about $196,512 and $21,835 down
• Payment: $1,361 principal and interest + $200 tax + $91 insurance + $98 PMI = $1,750
• Cash needed at closing with 3% costs: about $28,385
With 20% down the same household can afford about $254,642, because the loan is smaller and there is no PMI. At a 6.4% rate instead of 7.4%, the 10% down price rises from about $218,347 to about $236,075. To afford a $300,000 home with 10% down at 7.4%, the same household would need an income of about $103,000.

Frequently Asked Questions

8 answers

Applicable Laws & Regulatory Standards

CFPB, HUD & Federal Reserve Consumer Regulations

Official Legal Reference
Ability-to-Repay and Qualified Mortgage Rule — Regulation Z (12 CFR § 1026.43)

Requires lenders to make a reasonable, good-faith determination that you can repay a home loan, which is why they look at your income, debts and the monthly payment, the same inputs used here.

HUD Handbook 4000.1 — FHA Single Family Housing Policy Handbook

Sets the underwriting standards for FHA loans, including the benchmark housing and total debt ratios of 31% and 43% that this calculator offers as a preset.

Homeowners Protection Act of 1998 (HPA) — 12 U.S.C. § 4901

Lets you ask to cancel private mortgage insurance once equity reaches 20% and requires lenders to end it automatically at 22%, which is why PMI is only counted when the down payment is under 20%.

Legal citations and statutes are provided for consumer transparency, analytical validation, and educational reference under U.S. consumer financial regulations. This tool is not a substitute for formal legal, accounting, or tax counsel.

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Found an error or have a suggestion?

Help us calibrate this tool for US regulations and consumer standards.

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