How much house can you afford on your salary? The answer is not your maximum loan โ it is the monthly payment you can carry comfortably. Find your price range in seconds, then check the real payment with taxes and insurance.
How Much House Can I Afford on My Salary?
Based on the 28% rule: housing costs under 28% of gross monthly income. Free, instant and private โ nothing you type leaves your browser.
Estimates only, for planning. This is principal and interest only โ property tax, insurance, PMI and HOA are extra, so your real budget is lower. Lenders also check your total debts (the 36% rule).
The 28/36 rule โ how lenders judge affordability
Lenders use two ratios. The front-end ratio (28%): your housing payment โ principal, interest, taxes, insurance, PMI and HOA โ should stay under 28% of your gross monthly income. The back-end ratio (36%): all your debts together (mortgage plus car loans, student loans and credit cards) should stay under 36% of gross income. The calculator above uses the 28% rule on principal and interest; your real budget is lower once taxes and insurance are added, and lenders will check the 36% rule against your actual debts.
How much house can you afford by salary? (6.5%, 30 years, 20% down)
| Annual salary | Max monthly payment | Max loan | Max home price |
|---|---|---|---|
| $50,000 | $1,166.67 | $184,579.29 | $230,724.11 |
| $75,000 | $1,750.00 | $276,868.93 | $346,086.17 |
| $100,000 | $2,333.33 | $369,158.58 | $461,448.22 |
| $120,000 | $2,800.00 | $442,990.29 | $553,737.87 |
| $150,000 | $3,500.00 | $553,737.87 | $692,172.34 |
| $200,000 | $4,666.67 | $738,317.16 | $922,896.45 |
Principal and interest only, at 6.5% over 30 years with 20% down. Taxes, insurance, PMI and HOA are extra โ in practice, budget about 25โ30% less than the table price, or run the full payment on the mortgage calculator.
Worked example โ $80,000 salary
Gross monthly income is $80,000 รท 12 = $6,666.67. 28% of that is a maximum housing payment of $1,866.67 a month. At 6.5% over 30 years, that payment supports a loan of $295,326.86, and with 20% down that buys a home worth $369,158.58. But remember: that payment is principal and interest only. Add typical taxes and insurance (about $500โ$600 a month on a home this size) and the home you can truly afford is closer to $300,000 โ which is why you should always check the full payment, not just the loan.
Three ways to afford more house
1. Raise your down payment. A bigger down payment means a smaller loan for the same price โ and at 20% down, PMI disappears too. 2. Improve your credit score. A better score can cut your rate by 0.5% or more, and every 0.5% on a 30-year loan is worth roughly 5% more house. 3. Pay off other debts first. The 36% back-end rule counts car and student loans โ clearing a $400-a-month car payment can raise your approved mortgage by about $60,000.
Frequently asked questions
How much house can I afford on an $80,000 salary?
On an $80,000 salary, the 28% rule allows about $1,866.67 a month for housing. At 6.5% over 30 years with 20% down, that supports a loan of about $295,326.86 and a home price of about $369,158.58 โ before taxes, insurance and PMI, which lower the real budget.
What is the 28/36 rule?
The 28/36 rule says housing costs should stay under 28% of gross monthly income and all debts โ mortgage, car loans, student loans, cards โ under 36%. Lenders use it to judge whether you can afford a loan.
How much house can I afford with no down payment?
With 0% down, your max price equals your max loan amount. On a $100,000 salary at 6.5% over 30 years, that is about $369,158.58. VA loans allow 0% down; FHA allows 3.5% down.
Enter your price and see the exact monthly payment โ with taxes, insurance, PMI, FHA and VA modes, plus the full amortization schedule.