House Affordability Calculator
Banks will approve you for a larger mortgage than you should actually take. This calculator shows you both numbers so you can make an informed decision.
Your Finances
The 28/36 Rule
This is the gold-standard affordability metric used by financial planners. Your total housing costs (mortgage, taxes, insurance) should be no more than 28% of gross income. Your total debt payments including housing should be no more than 36% of gross income.
Go above these, and you become "house poor" — technically able to pay your bills but unable to save, invest, or absorb financial shocks.
Why Banks Approve You for More
Modern mortgage underwriting allows debt-to-income ratios up to 43% (sometimes 50%). That's the bank's maximum based on default risk — not a recommendation. It's the number at which their risk models start showing uncomfortable default probabilities, not the number at which you can comfortably live.
What This Calculator Doesn't Include (But You Should)
- Maintenance costs. Budget 1-2% of home value per year. On a $400,000 house, that's $4,000-$8,000 annually.
- HOA fees. Anywhere from $0 to $800+/month. Include these in your housing cost ratio.
- PMI (if applicable). Below 20% down, most lenders require private mortgage insurance, typically 0.5-1.5% of loan value annually.
- Furnishing and moving. First-time buyers often underestimate this by $5,000-$20,000.
The True Cost of Homeownership
A one-page checklist of every cost they don't mention in the listing. Updated for 2026.
Frequently Asked Questions
How much house can I afford on $100K salary?
Using the 28/36 rule, a $100,000 earner with moderate existing debt and 20% down can comfortably afford a $300,000-$350,000 home at today's rates. Banks may approve you for $450,000+, but that would leave you house-poor.
Is 20% down really necessary?
Not required, but valuable. Below 20%, you pay PMI, which adds $100-$400/month for nothing. You also start with less equity cushion. However, waiting years to save 20% while rents and prices rise may cost more than PMI would.
Should I include my spouse's income?
If you're buying jointly with combined finances, yes. If only one of you is on the mortgage, the bank only counts that person's income. Combined income qualifies you for more but also ties both incomes to the mortgage risk.
What if I buy below what I can afford?
Usually the smartest move. A house at 20-22% of income (vs the 28% max) means you can aggressively save, weather job changes, and avoid the stress that comes with maxing out your housing budget. Wealthy people almost universally live in smaller houses than they could afford.