How Much House Can I Afford?

How much house can I afford? Enter your gross household income, down payment, interest rate and loan term, and the calculator shows the monthly payment you can carry, the loan that fits it and the home price you can reach. The table also shows how much the price moves at other interest rates.

Source: HUD USER – Defining Housing Affordability (housing costs above 30 percent of income = cost burdened). Updated: 30 September 2026.

Gross monthly household income

Before taxes – HUD’s 30% standard and lenders use gross income

Share of income for all loan payments

Rule of thumb: 30%; above 40% counts as overburdened

Existing monthly loan payments

Car, student or credit-card payments; they count toward the same share

Interest rate

% per year

Sample value – enter the rate from your loan offer

Loan term

years

Down payment

Closing costs

% of price

Taxes, fees and other purchase costs – 0 if you pay them from other funds

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Result

Home price you can afford: Home price up to about $435,281
Loan and monthly payment: Loan of $375,281 at a $2,250 monthly payment
After the payment: $5,250 of your income is left after the payment
Price at other interest rates: Rate Loan Home price
5 % $419,134 $479,134
6 % $375,281 $435,281
7 % $338,192 $398,192
8 % $306,638 $366,638
Working: $7,500 × 30% = $2,250 payment (after $0 of existing payments). Loan at 6% over 30 years: $375,281. Plus $60,000 down payment = $435,281 home price.; The interest rate is a sample value; your lender quotes current terms. A lender also checks your expenses, assets and the property. Closing costs are not deducted here. Enter them if they are financed with the loan or the same payment. Property tax and insurance are not included either.

Rate	Loan	Home price
5 %	$419,134	$479,134
6 %	$375,281	$435,281
7 %	$338,192	$398,192
8 %	$306,638	$366,638

How it is calculated

How the affordable price is calculated

Maximum payment: gross household income × share, minus loan payments you already have. At $7,500 and 30% that is $2,250 a month.
Loan: the loan that this payment repays completely over your term at your interest rate (an amortizing loan with monthly interest). At 6% over 30 years that is about $375,300.
Home price: loan plus down payment. With $60,000 down you reach about $435,300. If you pay closing costs, enter them as a percentage: the price then drops accordingly.

What share of income is reasonable?

There is no legal limit, but there are benchmarks. The U.S. Department of Housing and Urban Development (HUD) calls households “cost burdened” when they pay more than 30% of their income for housing. Eurostat, the EU statistics office, speaks of overburden above 40% of disposable income. Lenders decide case by case and look at your debts, savings and the property. Treat the result as orientation before you talk to a lender, not as a loan approval.

Interest rates change – the comparison

The table shows the same household at one percentage point less and at one and two points more. Even one point moves the loan you can carry by roughly a tenth – so check that your finances still work if your rate resets higher. The exact payment schedule comes from the mortgage calculator; the property purchase costs calculator covers the extras, and if you are still comparing with renting, try how much rent can I afford.

Frequently asked questions

How much house can I afford on $100,000 a year?

$100,000 gross is about $8,333 a month; 30% of that is $2,500 a payment. At 6% over 30 years that supports roughly a $417,000 loan, plus your down payment.

What percent of income should go to a mortgage?

A common rule of thumb is 30% of gross income for total housing costs (HUD). Lenders decide individually; above 40% Eurostat speaks of overburden.

How much house can I afford with no down payment?

Set the down payment to 0; the price then equals the loan. Lenders often charge more without a down payment, and closing costs still have to be paid.

How much does the interest rate matter?

A lot: one percentage point more interest cuts the loan you can carry at the same payment by roughly ten percent. The table shows this for your numbers.

Are closing costs included?

Only if you enter them under “Closing costs”. The price is then calculated so that price plus closing costs equal loan plus down payment.

Sources and legal basis

As of: 30 September 2026