House Affordability Calculator

The standard guideline: your total housing payment (PITI) should not exceed 28% of gross monthly income (front-end DTI). All debt payments combined should not exceed 36-43% (back-end DTI). On $100k salary: max housing payment ~$2,333/month, which supports roughly a $350-400k home with 10% down at 7%.

The 28/36 rule: spend no more than 28% of gross monthly income on housing (principal, interest, taxes, insurance), and no more than 36% on all debt combined. More generous modern guidelines use 28/43 or 36/50 for well-qualified buyers. The rule is a starting point — actual affordability depends on your full financial picture.

At 7% rate, 30-year loan, 20% down on a $400k home: monthly PITI ~$2,500-2,700. Using 28% rule: need ~$9,300/month ($112k/year) gross income. Using the 43% back-end with no other debt: could qualify on ~$6,300/month ($75k/year), but it would be tight. Higher down payment reduces income needed.

Existing debt directly reduces how much house you can afford. $500/month in car and student loan payments removes roughly $60-80k from your affordable home price. Paying off debt before buying can dramatically increase your budget. This is why mortgage lenders look at back-end DTI carefully.

Generally no. Being house-poor — spending 40%+ of income on housing — creates financial stress and prevents savings and investing. A smaller home you can comfortably afford is better than a larger one that keeps you from building wealth. Leave room for emergency savings, retirement contributions, and life expenses.