USA: Mortgage & home
How Much House Can I Afford
Work out a realistic home budget before you start house hunting. Enter your household income, monthly debts and savings for a down payment, then choose a comfort level. The calculator uses debt-to-income (DTI) limits that lenders apply to find the highest price that fits.
How to use the How Much House Can I Afford
- Enter your yearly gross household income.
- Add monthly debt payments like car loans, cards and student loans.
- Enter the cash you have for a down payment and the mortgage rate.
- Pick a comfort level and read your maximum price.
Formula
Example
With $110,000 income, $600 of other debts, $60,000 down and a 6.5% rate, the standard 36% rule allows a home of about $400,000.
The 28/36 rule
Many advisors suggest spending no more than 28% of gross monthly income on housing and no more than 36% on all debts combined. Lenders often allow up to 43-45% for conventional loans and higher for FHA, but a lower ratio leaves room for savings and surprises.
Costs people forget
- Closing costs (2-5% of the price)
- Moving and furniture
- Maintenance - budget 1-2% of the home's value a year
- Higher utilities in a bigger home
Related free tools
Frequently asked questions
Should I use gross or take-home pay?
Lenders use gross (before-tax) income, which is what this tool uses. Check the payment against your take-home pay too.
Does my credit score matter?
Yes. A higher score gets a lower rate, which raises the price you can afford.
What if I have no debts?
Enter 0 - more of your income can go toward housing.
Can I afford more with a bigger down payment?
Yes. A larger down payment lowers the loan and may remove PMI.
Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.
Last updated: November 2026