Home Affordability Calculator
Find your maximum home price based on income and monthly budget — with an adjustable income percentage slider.
How Much House Can You Afford?
The standard guideline is spending no more than 28–30% of gross monthly income on housing (the "front-end ratio"). At 3% of annual income monthly, a $100,000/yr earner can comfortably afford around $250,000. Zillow's research suggests many buyers stretch to 4.167% — but doing so leaves less financial buffer.
The Conservative Approach (3% of Gross)
Keeping your payment at or below 3% of monthly gross income leaves room for retirement savings, emergency funds, and life changes. This is the standard used by most financial planners.
The Aggressive Approach (up to 5%)
Some buyers stretch to 4.167%–5% of income — especially in high-cost markets. While lenders may approve this, it reduces financial flexibility and increases vulnerability during job loss or economic downturns.
- What income do I need to afford a $400,000 home?
- At 20% down and 7% rate, a $400,000 home requires roughly $2,400/month in P&I. Using the 28% rule, you'd need at least $103,000/year in gross income. At 3% of gross, you'd need $96,000/year.
- Does my existing debt affect how much house I can afford?
- Yes. Lenders use the back-end debt-to-income (DTI) ratio, which includes all monthly debts. Most conventional loans require a DTI under 43–45%. Reduce existing debts to qualify for a larger mortgage.