How to use the home affordability calculator
- Enter your gross yearly income (before tax, for everyone on the loan) and your monthly debt payments: car, student loans, card minimums.
- Enter your down payment and the mortgage rate you've been quoted, and choose the loan term.
- Pick how careful to be: conservative 28/36, FHA-style 31/43 or stretch 36/45.
- Adjust property tax, insurance, HOA and PMI for your area.
You'll see the most you can spend on a home, the full monthly payment, your debt-to-income ratios and the cash to bring to closing.
A worked example
Income: $90,000 a year ($7,500 a month). Debts: $450 a month. Down payment: $40,000. Rate: 6.3% for 30 years.
- 28% of income: $2,100 a month for housing
- 36% of income minus debts: $2,700 − $450 = $2,250
- The lower limit, $2,100, sets the budget
The most house that fits is about $294,000, with a $254,000 loan:
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,572 |
| Property tax (1.1%) | $270 |
| Home insurance | $150 |
| PMI (under 20% down) | $106 |
| Total | $2,098 |
Cash to bring: the $40,000 down payment plus about $8,800 in closing costs.
What income buys how much house
Same assumptions ($40,000 down, 6.3%, 30 years, 28/36 rule):
| Income | Home price |
|---|---|
| $60,000 | about $200,000 |
| $75,000 | about $247,000 |
| $100,000 | about $325,000 |
| $120,000 | about $387,000 |
| $150,000 | about $480,000 |
Property taxes, insurance and HOA dues vary hugely by area, so put in your local numbers. In a high-tax state the same income buys noticeably less.
Ways to afford more, safely
- Pay down debts first. Every $100 of monthly debt you clear raises your limit under the 36% rule. Check your ratio with the debt-to-income calculator.
- Save a bigger down payment. Reaching 20% removes PMI and lowers the loan.
- Shop the rate. Half a point lower adds roughly $10,000–$12,000 to the price you can afford in the example.
- Raise income on paper. If you're hourly, the salary calculator shows your yearly income the way lenders count it.
Renting for now?
If the numbers don't work yet, renting while you save isn't a failure. The rent affordability calculator shows a comfortable rent for your income. Thinking of buying a place to rent out instead? The rental property calculator checks cash flow and cap rate.
Plan the move with your whole budget
A home is the biggest line in most budgets. Vault is a personal finance dashboard that shows your income, bills and savings goals together, and Summit tracks your net worth as your home equity grows. If you're becoming a landlord, RentRoll tracks rent, expenses and tenants. Each has a free demo with sample data.
An estimate, not a loan offer. Lenders also look at your credit score, savings, employment history and the property.
Frequently asked questions
How much house can I afford on $100,000 a year?
What is the 28/36 rule?
How much house can I afford on $60,000 a year?
Does the calculator include PMI?
How much cash do I need to buy a house?
How do mortgage rates change what I can afford?
Should I buy the most house the bank will approve?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
