Home Affordability Calculator
Find out how much house you can afford, not just how much a lender might approve. See a comfortable price range based on your income, debts, and savings.
Quick Answer
With a $95,000 income, $500 in monthly debts, and $40,000 down, a comfortable home price is around $340,000, while a stretch budget could reach $405,000.
Your Budget
Comfortable Range
$340,000
28% of gross income on housing
Stretch Budget
$405,000
36% back-end DTI max
Monthly Payment at Comfortable Price
Principal & Interest
$1,596
Property Tax
$340
Insurance
$130
Total Monthly
$2,066
Affordability by Price Point
| Home Price | Monthly Payment | % of Income |
|---|
How Much House Can I Afford?
The general rule of thumb is that housing costs shouldn't exceed 28% of your gross monthly income (the front-end ratio), and total debt payments including housing shouldn't exceed 36-43% (the back-end ratio). This home affordability calculator applies both rules to your income, debts, and down payment to show a comfortable price range versus a maximum stretch budget, which is often higher than what actually feels affordable month to month.
Comfortable vs Stretch Budget: What's the Difference?
A lender may approve you for more than what's genuinely comfortable for your lifestyle. This tool shows both numbers so you can decide with your full financial picture in mind, not just the maximum you technically qualify for.
| Budget Type | Rule Applied | Best For |
|---|---|---|
| Comfortable | 28% front-end | Leaves room for savings and lifestyle |
| Stretch | 36% back-end | Maximizes buying power |
How to Use This Calculator
- Enter your annual household income.
- Enter your monthly debt payments and available down payment.
- Set your expected interest rate and loan term.
- Add estimated property tax and insurance costs.
- Compare your comfortable and stretch price ranges.
Frequently Asked Questions
How much house can I afford on my salary?
A common guideline is 3 to 5 times your annual income, though the more precise answer depends on your down payment, debts, interest rate, and local property taxes and insurance costs.
Is this the same as a pre-approval amount?
Not exactly. This tool shows what's financially comfortable based on standard budgeting rules. For the maximum amount a lender might approve, use our Pre-Approval Estimator, which applies formal DTI limits.
Should I aim for the comfortable range or the stretch budget?
Most financial advisors recommend staying closer to the comfortable range to leave room for savings, emergencies, and other financial goals, even if you qualify for more.