How much house can I afford on $50k, $100k, or $150k a year?
At $50,000 a year this example reaches about $178,600, at $100,000 about $322,900, and at $150,000 about $467,400. Those figures use the 28/36 rule of thumb: housing up to 28% of gross income and all debts up to 36%.
| Income | Price at 28/36 | Payment | Price at 31/43 | Payment |
|---|---|---|---|---|
| $50,000 | $178,600 | $1,099 | $199,900 | $1,261 |
| $60,000 | $207,200 | $1,399 | $225,800 | $1,550 |
| $70,000 | $236,100 | $1,633 | $257,800 | $1,808 |
| $75,000 | $250,600 | $1,750 | $273,800 | $1,937 |
| $80,000 | $265,000 | $1,866 | $289,800 | $2,066 |
| $90,000 | $294,000 | $2,100 | $321,800 | $2,324 |
| $100,000 | $322,900 | $2,333 | $353,800 | $2,583 |
| $120,000 | $380,700 | $2,800 | $417,900 | $3,100 |
| $150,000 | $467,400 | $3,499 | $513,900 | $3,875 |
| $200,000 | $612,000 | $4,666 | $673,900 | $5,166 |
| $250,000 | $756,500 | $5,833 | $834,000 | $6,458 |
You'll often hear a rule like "three times your salary," but no single multiple holds. Your down payment is a fixed dollar amount, so it does more at lower incomes. Your rate and local taxes shift the answer too, so treat this table as a starting point and use your own numbers above.
How much house can I afford for $1,500 or $2,000 a month?
For $2,000 a month, all in, this example reaches about $281,600 with $40,000 down. Taxes, insurance, and any PMI have to fit inside that $2,000.
| All-in monthly budget | $20,000 down | $60,000 down |
|---|---|---|
| $1,200 | $165,500 | $208,500 |
| $1,500 | $202,700 | $248,200 |
| $1,800 | $239,900 | $287,800 |
| $2,000 | $264,700 | $299,900 |
| $2,500 | $326,600 | $360,400 |
| $3,000 | $388,600 | $422,400 |
| $5,000 | $636,400 | $670,200 |
The trap is treating your budget as a loan payment. If $2,000 covered only principal and interest, you'd seem able to buy about $356,422, which is $74,822 more than the all-in figure. HOA dues eat into the budget the same way. Every $100 a month of dues reduces what you can spend on the home itself, which matters when you compare a condo with a house. Also notice how the $60,000 column slows near $300,000. That's where the down payment falls below 20% and PMI starts, so the price can't climb as fast with each extra dollar of budget.
Is your income or your debt the real limit?
On $100,000, the 36% total limit takes over once your debts pass about $667 a month. Below that, the housing limit is what stops you, and paying off a card won't change this number. Above it, every $100 of monthly debt you clear adds about $12,400 of buying power.
| Monthly debts | Home price | Limit reached |
|---|---|---|
| $0 | $322,900 | Housing |
| $400 | $322,900 | Housing |
| $667 | $322,800 | Total debt |
| $1,000 | $281,600 | Total debt |
| $1,500 | $219,600 | Total debt |
| $2,000 | $165,400 | Total debt |
A new $600 car payment would lower this example's price by $41,300. A rate one point higher would lower it by $21,800. Fannie Mae's rules count installment debts running beyond ten months, revolving payments, leases of any length, and alimony or child support. Rent, utilities, and groceries don't count, though you'll still pay for food and power. To model clearing those debts first, use the debt payoff calculator.
What a lender approves is not what you can afford
A lender's limit can be well above 28/36, and it's measured on gross pay while you live on take-home. Fannie Mae caps total debt at 36% on manually underwritten loans, up to 45% with stronger credit and reserves, and up to 50% through its automated system. FHA's manual standard is 31% and 43%, rising to 40% and 50% with compensating factors. This calculator's "Stretch" setting stops at 31/43, so an approval can come in higher.
| Ratios | Home price | Housing payment | Share of take-home |
|---|---|---|---|
| 28% housing, 36% total | $322,900 | $2,333 | 35% |
| 31% housing, 43% total | $353,800 | $2,583 | 39% |
| 40% housing, 50% total | $446,800 | $3,333 | 51% |
Nothing in those ratios measures your retirement savings, your groceries, or your car repairs. Take the highest payment here and try living on what's left for a few months, by moving the difference into savings before you sign. The Consumer Financial Protection Bureau (CFPB) also lists maintenance, repairs, and utilities as costs that can be significant. Our budget calculator shows what remains.
How the rate and your down payment change the answer
| Rate | Home price | Loan amount |
|---|---|---|
| 5.5% | $347,400 | $307,400 |
| 6% | $334,700 | $294,700 |
| 6.5% | $322,900 | $282,900 |
| 7% | $311,700 | $271,700 |
| 7.5% | $301,100 | $261,100 |
Another $20,000 down raises this example's price by $16,900. You don't get the full $20,000, because a pricier home also costs more in tax and insurance. The same savings have other jobs. The CFPB says closing costs typically run 2% to 5% of the price, or $6,458 to $16,145 on a $322,900 home, and it suggests keeping three to six months of expenses in reserve. So don't count every dollar you've saved as down payment.
When to trust this number, and who to ask
This is a planning estimate, not a pre-approval. Lenders also weigh credit, reserves, job history, and the home itself. The insurance rate here is a percentage of value, and premiums can run far higher in some areas, so get a real quote. Taxes and insurance can rise after you buy. VA and FHA upfront fees aren't included here, so check those in the mortgage calculator.
A HUD-approved housing counselor can review your budget at little or no cost, before you talk with a lender. If you're torn about buying at all, try the rent vs. buy calculator.
Common questions
What salary do I need for a $300,000 or $400,000 house?
With 20% down, a 6.5% rate, and the same tax and insurance inputs, the 28% limit needs about $81,084 a year for a $300,000 home and $108,112 for $400,000. A smaller down payment raises both figures.
How much house can I afford with $20k down?
On $75,000 a year with $400 in debts, about $233,700 at 28/36. That's a $213,700 loan with $107 a month in PMI in this example, and it leaves nothing for closing costs if $20,000 is all you have.
Do lenders use gross or net income?
Gross. The CFPB defines debt-to-income as your monthly debt payments divided by gross monthly income. This calculator asks for gross income too, so check any result against your actual paycheck with the paycheck calculator.
Is 28/36 a law?
No. It's a rule of thumb. The CFPB says different loan products and lenders have different limits. It's useful because it leaves more room in your budget than a 43% or 50% limit does.
Can I use this for a VA loan?
Partly. Enter your numbers and set PMI to 0%, since VA loans have no monthly mortgage insurance. This calculator doesn't model the VA funding fee or VA's own underwriting rules, so confirm the result with a lender that makes VA loans.
Sources
- B3-6-02: Debt-to-income ratios (Selling Guide) · Fannie Mae
- FHA Single Family Housing Policy Handbook 4000.1 · U.S. Department of Housing and Urban Development
- What is a debt-to-income ratio? · Consumer Financial Protection Bureau
- Figure out how much you want to spend · Consumer Financial Protection Bureau
- Determine your down payment · Consumer Financial Protection Bureau
- VA purchase loan · U.S. Department of Veterans Affairs