Can You Afford
That Home?
Enter your income, debts, and down payment to instantly calculate how much home you can afford — including a full monthly breakdown and DTI analysis.
“Note: This calculator provides estimated home budgets for educational purposes only. It does not constitute an official loan offer or professional financial advice. Always consult with a qualified lender for exact rates and pre-approval.”
The 28/36 Rule – The Standard Lender Guideline
28% rule: Monthly mortgage payment (PITI) should not exceed 28% of gross monthly income
36% rule: Total monthly debt payments should not exceed 36% of gross monthly income
Affordable Home Price by Annual Income
| Annual Income | Conservative (3x) | Moderate (4x) | Aggressive (5x) |
|---|---|---|---|
| $50,000 | $150,000 | $200,000 | $250,000 |
| $75,000 | $225,000 | $300,000 | $375,000 |
| $100,000 | $300,000 | $400,000 | $500,000 |
| $150,000 | $450,000 | $600,000 | $750,000 |
Hidden Costs of Homeownership
| Cost | Estimated Amount |
|---|---|
| Property taxes | 0.5%–2.5% of home value annually |
| Homeowner’s insurance | $1,000–$2,500/year |
| Maintenance & repairs | ~1% of home value per year |
| PMI (if under 20% down) | 0.5%–1.5% of loan annually |
| Closing costs | 2%–5% of purchase price (one-time) |
| Moving costs | $1,000–$5,000 (one-time) |
Down Payment Impact on $400,000 Home at 7%
| Down Payment | Loan Amount | Monthly P&I | PMI? |
|---|---|---|---|
| 3.5% – $14,000 | $386,000 | $2,569 | ~$250/mo |
| 10% – $40,000 | $360,000 | $2,396 | ~$200/mo |
| 20% – $80,000 | $320,000 | $2,129 | None |
Related Calculators
Self-Employment Tax Calculator
Frequently Asked Questions
At 20% down, 7%, 30-year term, monthly payment is ~$2,129. To stay under 28% of gross income, you need at least $7,600/month ($91,200/year). With existing debts factored in, $100,000+ income is typically needed.
Aim for 20% to avoid PMI. FHA loans accept 3.5% down with 580+ credit score. Always add 2%–5% of purchase price for closing costs and keep 3–6 months of mortgage payments in emergency savings.
Not always. Buying makes sense if you plan to stay 5–7+ years, have stable income, and a solid down payment. In very high-cost markets, renting and investing the difference can sometimes be the better financial outcome.
Conventional loans require 620 minimum. Best rates with 740+. FHA accepts 580 (3.5% down) or 500 (10% down). VA loans have no official minimum. Higher credit score = lower rate = tens of thousands saved over 30 years.
Typically 3–6 months from starting search to closing. Pre-approval: 1–3 days. Finding and making an accepted offer: 1–3 months. Closing after acceptance: 30–60 days. Getting pre-approved first speeds up the entire process.