How Much House Can I Afford?

Free · no sign-up · reviewed September 2026

Before you fall in love with a listing, find your number. This calculator uses the lender's classic 28/36 rule to estimate the maximum home price you can comfortably afford based on your income, debts and down payment.

Slide in your details and you'll see a realistic price ceiling plus the monthly payment that comes with it — and, because a lender's rule covers the payment and not the house, what that home costs to keep up and the smaller price that fits once upkeep is in the same budget.

Drag to adjust

Your numbers

Annual household income

Monthly debt payments

Down payment

Mortgage rate (APR)

Loan term

Year built

Sets the upkeep estimate — a new build costs far less to maintain. Lenders don't count upkeep, but you still pay it.

Property tax rate

0.89% is the national average effective rate: $8.88 of tax per $1,000 of home value (2024 American Community Survey). County rates run from about 0.3% to over 2%, so last year's bill divided by the price is the number to type here.

You can afford a home around

$297,206

About $2,100/mo payment + $248/mo upkeep · $257,206 mortgage

💡 This is capped by the standard 28% income rule. Lenders generally want your housing cost under 28% of gross income, which sets this ceiling. The payment above includes estimated property tax at 0.89% of the price a year and the measured US average premium for a home at this price (2024 American Community Survey), so $147 a month of it is insurance — about 0.59% of the price a year. At 13% down it also carries $107 a month of PMI at 0.5% of the loan a year, because a lender counts mortgage insurance inside the same 28% — which costs you about $14,858 of home price. PMI is the one line here with an end date: it comes off automatically after 7 yr 3 mo, and you can ask at 5 yr 10 mo. What it does not include is upkeep: a 1980s home at this price costs roughly $248 a month to keep up (1% of its value a year), which no lender counts and no escrow collects, so buying at this ceiling really costs $2,348 a month — 31% of your gross income, where the payment alone is 28%. Keeping the payment and the upkeep together inside the same limits means a home around $267,968.

$2,100

Max monthly payment

all-in (PITI + PMI)

$2,348

Payment + upkeep

31% of gross

$257,206

Mortgage needed

over 30 yrs

Down payment (cash)$40,000
Mortgage (borrowed)$257,206

Affordable monthly housing: $2,100
Estimated principal & interest: $1,626
Estimated taxes + insurance: $367
PMI at 13% down: $107/mo (0.5% of the loan a year)
PMI drops off after: 7 yr 3 mo ($9,324 of PMI)
Price PMI costs you: $14,858 ($200,000 is the most 20% down reaches)
Down payment: $40,000 (13%)
Max home price a lender fits: $297,206
Upkeep on a 1980s home at that price: $248/mo (1% a year)
Payment + upkeep: $2,348/mo
Max price with upkeep inside the same limits: $267,968 ($29,238 less)

⚠️ Your down payment is 13% of this price, so the payment above includes PMI — the price would be $14,858 higher without it. Putting 20% down instead would avoid PMI entirely, but on $40,000 of cash that caps the price at $200,000, so for most buyers the premium is the cost of buying sooner rather than a mistake. An FHA loan charges mortgage insurance at any down payment and is not modelled here.

How Much House Can I Afford · Far Better Off

https://farbetteroff.com/calculators/how-much-house-can-i-afford

Open that link to get this calculator back with these exact numbers. Estimates for education only — Far Better Off is not a lender or a financial advisor, and these results are not financial advice.

The 2-minute guide

The 28/36 rule in plain English

Lenders like to see your total housing payment stay under about 28% of your gross monthly income, and all your debts (housing + car + student loans + credit cards) under about 36%. This calculator finds the biggest home price that keeps you inside both limits, the same math a loan officer runs.

'Can afford' vs 'should spend'

The max a lender approves is often more than you'll want to actually spend. Leave room for savings, emergencies and a life outside your mortgage. Many people aim a notch below their ceiling so a surprise bill doesn't become a crisis.

Your down payment does double duty

A bigger down payment raises the price you can afford and shrinks your monthly payment. Hitting 20% down also lets you skip PMI (private mortgage insurance), an extra monthly fee lenders charge when you put down less — and because PMI comes out of the same 28%, it is charged in the ceiling above. On the default numbers it costs about $15,000 of home price. That is not an argument for waiting: 20% down on the same cash would cap the price far lower, so for most buyers the premium is what buying sooner costs.

PMI is in this number, and it has an end date

Under 20% down a conventional loan adds private mortgage insurance, and a lender counts it inside the housing payment your ratios are measured on — Fannie Mae's monthly housing expense is principal and interest plus "property, flood, and mortgage insurance premiums". So it lowers the price that fits rather than arriving on top of it. Unlike the other lines it does not last: on a conventional loan your servicer must drop PMI automatically once the scheduled balance reaches 78% of the home's original value, and you can ask at 80%. Both dates are shown above. The rate used is 0.5% of the loan a year, the middle of the $30–$70 a month per $100,000 borrowed Freddie Mac describes; your own quote depends on your credit score and the size of your down payment. FHA loans charge mortgage insurance at any down payment, often for the life of the loan, and are not modelled here.

The lender's ceiling leaves out the roof

The 28/36 rule covers the payment a lender collects: principal, interest, taxes and insurance. It says nothing about what a house costs to keep — the roof, the furnace, the water heater and the hundred smaller things. That is why this page shows two prices: the one a lender fits, and the one that still fits once upkeep is in the same budget. The gap between them is the surprise most first-time buyers describe.

A new build is cheaper to keep, for a while

Upkeep is not one rate for every house. Read from the 2023 American Housing Survey, routine maintenance as a share of a home's value climbs steeply for about 25 years and is then flat for the rest of the house's life: homes under five years old spent 0.07% of their value a year on routine maintenance, homes past about 25 years settle near 0.33%, and a 1925 house costs no more of its value than a 1975 one. Set the year built above and the estimate moves with it, averaged across the years you'd hold the loan, because the house ages while you own it.

Pay down debt to buy more house

If your number feels low, look at your monthly debt payments. Because the 36% rule counts them against you, knocking out a car loan or credit-card balance can noticeably raise how much home you qualify for.

Frequently asked questions

How much income do I need for a $400,000 house?

As a rough guide, many buyers target a home price around 3–4× their gross annual income, so a $400k home often fits an income of roughly $100k–130k, but it depends heavily on your down payment, debts and interest rate. Use the sliders above to see your own number.

What counts as 'monthly debt'?

Recurring required payments: car loans, student loans, minimum credit-card payments, personal loans and child support. Regular bills like groceries, utilities and streaming don't count toward the lender's ratio.

Does this include maintenance and repairs?

Both ways, and the difference is the point. The headline price is the lender's ceiling — the most expensive home whose payment (principal, interest, taxes, insurance and PMI) fits the 28/36 rule, which is the question underwriting actually asks. Underneath, the breakdown charges upkeep as well: on the default numbers, a $90,000 income supports a $297,206 home at $2,100 a month of payment, but a 1980s house at that price costs about $248 a month to keep up, so owning it really takes $2,348 a month — 31% of gross income rather than 28%. Keeping both inside the same limits means a home around $267,968, about $29,000 less.

How much should I budget for upkeep?

It depends on the house's age, not just its price. Set "Year built" above and the estimate follows: a 1980s home — the median US vintage — lands on the familiar 1% of value a year, while a 2020s build averages about 0.7% across a 30-year stay. That shape comes from the 2023 American Housing Survey's routine-maintenance question, where upkeep as a share of value climbs steeply for roughly 25 years and is then flat for the rest of the house's life. The rate is averaged over the years you'd hold the loan, because the house ages while you own it. It is an estimate of routine upkeep, not of a new roof in a single year.

Does this include PMI?

Yes, and inside the ratios rather than on top of them, because that is where a lender puts it: Fannie Mae's monthly housing expense — the figure the 28% and 36% are measured against — is principal and interest plus property, flood and mortgage insurance premiums. So under 20% down the price you see is already lower for it. On the default numbers the down payment is 13% of the ceiling, PMI is about $107 a month at 0.5% of the loan a year, and it costs roughly $14,858 of home price. It is also the only line in the payment that ends: your servicer must cancel it automatically when the scheduled balance reaches 78% of the home's original value, about 7 years 3 months in on these numbers, and you can ask at 80%, about 5 years 10 months in. Put 20% down and no premium is charged at all — but $40,000 of cash at 20% down only reaches a $200,000 house, which is why most buyers pay it for a while.

Does a higher interest rate lower what I can afford?

Yes. A higher rate makes each borrowed dollar cost more per month, so the same budget buys less house. Even a 1% rate change can move your ceiling by tens of thousands of dollars.

Related calculators

Mortgage Calculator Debt-to-Income Calculator Take-Home Paycheck Calculator

Related guides

The 28/36 rule, explained →

Embed this calculator

Free to use on your own site. Paste this where you want it to appear:

<iframe id="calcwise-how-much-house-can-i-afford" src="https://farbetteroff.com/embed/how-much-house-can-i-afford" title="How Much House Can I Afford by Far Better Off" width="100%" height="2640" frameborder="0" style="border:0;max-width:600px;width:100%" loading="lazy"></iframe>
<script>window.addEventListener("message",function(e){if(e&&e.data&&e.data.type==="cw-embed-height"&&e.data.slug==="how-much-house-can-i-afford"){var f=document.getElementById("calcwise-how-much-house-can-i-afford");if(f){f.style.height=e.data.height+"px"}}});</script>
<p style="font:13px/1.4 system-ui,sans-serif;text-align:center;margin:6px 0">Powered by <a href="https://farbetteroff.com/calculators/how-much-house-can-i-afford" target="_blank" rel="noopener">Far Better Off</a></p>

The little “Powered by Far Better Off” link keeps it free. Thanks for the credit!

Need a dark theme, a compact version for a sidebar, a different width or your own starting numbers? Customize it in the embed builder →

Or set them by hand — every field on How Much House Can I Afford, with the name to use and the values it takes: Starting-values reference →

On WordPress? One line instead of three.

With the free Far Better Off plugin installed, this shortcode is the same widget — and nothing for your editor or theme to strip:

[calcwise slug="how-much-house-can-i-afford"]

Download the plugin → Free, no account, and it adds a Far Better Off block too.