Find your maximum home price based on income, debts, and current rates. See affordability tables for $50k-$200k incomes. Free mortgage affordability calculator included.
📊 The Short Answer
Using the 28/36 rule, you can afford a home priced at roughly 3-4x your annual income with 20% down. At $75,000 income: ~$250,000 home. At $100,000: ~$350,000. At $150,000: ~$525,000. The exact number depends on your interest rate, other debts, property taxes, and down payment. Our free calculator lets you enter your exact numbers.
Home Price at $75k Income (6.5%, 20% down)
Monthly payment: $1,750. Within 28% DTI ($1,750/$6,250). Requires $50,000 down.
Home Price at $100k Income
Monthly payment: $2,333. Within 28% DTI. Requires $70,000 down payment.
Home Price at $150k Income
Monthly payment: $3,499. Within 28% DTI. Requires $105,000 down.
Impact of $500/month Other Debt
The 36% back-end DTI includes all debts. $500/month in car/student loans reduces your max mortgage by ~$75,000.
Impact of 1% Rate Increase (6.5% → 7.5%)
At $100k income, a 1% rate hike drops your max home price from $350k to $315k. Rate shopping matters.
| Annual Income | Monthly Income | Max Monthly PITI | Max Home Price (20% down) |
|---|---|---|---|
| $50,000 | $4,167 | $1,167 | $160,000 |
| $75,000 | $6,250 | $1,750 | $250,000 |
| $100,000 | $8,333 | $2,333 | $350,000 |
| $125,000 | $10,417 | $2,917 | $430,000 |
| $150,000 | $12,500 | $3,500 | $525,000 |
| $200,000 | $16,667 | $4,667 | $700,000 |
Maximum home price is derived from the 28/36 rule: monthly housing payment (PITI) must not exceed 28% of gross monthly income. Total debt payments (including housing) must not exceed 36%. Back-solve for loan amount using the mortgage payment formula, then add down payment to get home price.
Outcome: If you earn $100k but buy a $250k home instead of $350k, your monthly payment drops to $1,750. You save $583/month that can go to investments, travel, or an emergency fund.
Pros
Cons
Outcome: If you save 30% down instead of 20%, your max home price at $100k income rises from $350k to $385k. The extra $35k in cash buys you $35k more house without increasing monthly payments.
Pros
Cons
💡 What This Means For You
The 28/36 rule provides a reasonable ceiling, but your personal comfort zone may be lower. If you have stable income, minimal other debt, and a 6-month emergency fund, buying near the 28% limit is reasonable. If your income is variable, you have high non-debt expenses, or you value financial flexibility, aim for 20-25% of gross income instead. The best home price is one you can afford without sacrificing retirement savings and quality of life.
The 28/36 rule states: (1) housing costs should not exceed 28% of gross monthly income, and (2) total debt payments (housing + car + student loans + credit cards) should not exceed 36% of gross income. For $100k income ($8,333/month), that means max $2,333 for housing and $3,000 for all debts.
Conventional loans require 3-5% minimum, but loans under 20% down require Private Mortgage Insurance (PMI), adding $100-200/month. FHA loans allow 3.5% down but PMI lasts for the life of the loan. 20% down eliminates PMI and gives you the best rate.
Yes. A 1% rate drop (6.5% → 5.5%) increases your max home price by about 10-12%. At $100k income, that's roughly $35,000-40,000 more home. Use our calculator to test different rate scenarios.
Indirectly yes. A lower credit score means a higher interest rate, which increases your monthly payment on the same loan amount, which reduces how much home you can afford. The difference between 620 and 740+ credit can be 1-2% in rate — worth thousands in buying power.
Important Disclaimer — Not Financial Advice
The results from this calculator are for informational and educational purposes only. They are not a guarantee of actual outcomes and should not be considered financial, investment, tax, or legal advice. Always consult a qualified professional for advice tailored to your specific financial situation. See our Terms of Service and Privacy Policy for more information.
Last reviewed by Qasem Mohammed — May 31, 2026
AI & Software Engineer, Founder & Lead Developer at QFINHUB · Editorial Policy