How Much House Can I Afford?
Lenders will tell you what you can borrow. This guide tells you what you can afford - those are often two different numbers.
Quick rule: multiply your annual gross income by 3–4x for a conservative estimate. On $100k salary that's $300k–$400k. But your actual number depends on debt, down payment, and rate. The full breakdown is below.
How much house can you afford by income?
The multiplier rule gives you a quick range before you run any calculations. Conservative = safe with existing debt. Standard = minimal debt, stable income. Aggressive = no debt, excellent credit, large down payment.
| Annual income | Conservative (3×) | Standard (4×) | Aggressive (5×) |
|---|---|---|---|
| $50,000 | $150,000 | $200,000 | $250,000 |
| $75,000 | $225,000 | $300,000 | $375,000 |
| $100,000 | $300,000 | $400,000 | $500,000 |
| $125,000 | $375,000 | $500,000 | $625,000 |
| $150,000 | $450,000 | $600,000 | $750,000 |
| $200,000 | $600,000 | $800,000 | $1,000,000 |
Multiplier rules are starting points only. Actual limit depends on debt load, down payment, credit score, and current interest rates.
Get your exact number with income and debts →What lenders approve vs what you should spend
The gap that costs you
On a $100k salary, lenders will often approve you for $450,000. The 28% rule says your ceiling is around $380,000. That $70,000 difference translates to roughly $440 more per month - every month - for 30 years. That's $158,000 in extra payments over the life of the loan for a house you technically qualified for but probably shouldn't have bought.
Approved means the bank is willing to take the risk. Affordable means you can make the payment and still save, invest, and handle surprises. Use the lender's number as a ceiling - not a target.
The 28/36 rule - with real numbers
These are the two DTI limits most conventional lenders use. Front-end covers housing only. Back-end covers housing plus all other debts.
≤ 28%
Housing costs only
Principal, interest, taxes, insurance, HOA. Nothing else counts here.
On $80,000/year ($6,667/mo gross):
Max housing payment → $1,867/month
≤ 36–43%
All debts combined
Housing payment plus every other minimum: car loans, student loans, credit card minimums.
On $80,000/year with $500/mo existing debt:
Max all debts → $2,400/mo
Max housing → $1,900/month (~$280k home)
How debt reduces what you can afford
This is the number most buyers miss. Your income didn't change - but every $200/month in existing debt removes roughly $40,000 from your home price ceiling.Which debts count and how lenders calculate them →Have a car payment? See how it specifically affects your home price →
| Monthly debt | What it covers | Max home price | vs no debt |
|---|---|---|---|
| $0 | No existing debt | ~$400,000 | baseline |
| $200/mo | Car payment | ~$360,000 | -$40,000 |
| $400/mo | Car + student loan | ~$320,000 | -$80,000 |
| $600/mo | Multiple debts | ~$280,000 | -$120,000 |
| $800/mo | Heavy debt load | ~$240,000 | -$160,000 |
Assumes $100,000 gross income, 6.4% rate, 30-year fixed, 10% down, 28% front-end / 43% back-end DTI limits.
See how debt changes your qualifying income →Have student loans? See how deferment and IDR change the calculation →How your down payment changes the equation
Same $80,000 salary. Same rate. The down payment shifts your maximum price - and adds or removes PMI, which costs more than most buyers expect.
5% down
~$310,000
- Down payment: $15,500
- Monthly P&I: ~$1,740
- PMI: ~$145/mo ⚠️
- Total /mo: ~$2,185
10% down
~$330,000
- Down payment: $33,000
- Monthly P&I: ~$1,880
- PMI: ~$115/mo ⚠️
- Total /mo: ~$2,295
20% down
~$380,000
- Down payment: $76,000
- Monthly P&I: ~$2,150
- PMI: $0 ✓
- Total /mo: ~$2,500
Before you run the numbers - check these first
These aren't optional. Buying without them in place turns a good asset into a financial burden.
Emergency fund first
3–6 months of expenses in cash before you buy. You can't withdraw equity in an emergency without refinancing or selling.
No high-interest debt
Pay off credit cards and personal loans above 8% first. There's no point building home equity at 6.4% while paying 22% elsewhere.
Stable employment
Lenders require 2 years of documented income history. A job change during the mortgage process can delay or kill approval.
Three real buyer profiles
Income: $75,000/year
Debt: $400/month (car + student loan)
Down payment: 10%
Safe range: $220,000–$260,000
Monthly payment: ~$1,800
DTI: ~31% front-end
Income: $100,000/year
Debt: $200/month (car payment)
Down payment: 20%
Safe range: $350,000–$400,000
Monthly payment: ~$2,400
DTI: ~27% front-end
Combined income: $150,000/year
Debt: $500/month total
Down payment: 20%
Safe range: $500,000–$550,000
Monthly payment: ~$3,200
DTI: ~26% front-end
Looking closely at the limits: The 28/36 rule applied → See the full 28/36 rule explanation
Tables give you the benchmark. The calculator gives you the number for your actual income, debts, and down payment.
Primary tool
Home Affordability Calculator
Enter income, debts, down payment, and rate. Get your safe range, stretch max, and monthly payment breakdown.
Related guides
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Is Now a Good Time to Buy a House?
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Estimates based on your inputs. Actual results may vary. Terms →