The Mortgage Ledger

United States

US affordability calculator

How much home you can afford, using the debt-to-income rule, your income and debts, and live US rates.

Your finances

Car loans, student loans, credit-card minimums, etc.

You could afford

California, United States · up to 36% of income on housing

$539,759

estimated maximum home price

Monthly housing budget
$3,200.00
Down payment (20%)
$107,952
Loan amount
$431,807
Principal & interest
$2,729.32
Property tax + insurance
$470.68
Open this in the full calculator →

An estimate to help you plan — not financial advice or a loan offer. A guideline based on the 36% debt-to-income rule — lenders also weigh credit, employment, and reserves. Tax and insurance are estimated regional averages.

Should you buy — or is renting smarter?

How much house you can afford in the US comes down to your debt-to-income ratio: lenders cap your total monthly debts — including the mortgage, property tax, and insurance — at roughly 36–43% of gross income. This calculator works backward from your income and existing debts to the most expensive home that fits.

How this calculator works

It applies the 28/36 rule: about 28% of gross monthly income toward housing and 36% toward all debt combined. Your existing debts come out of that budget before the mortgage does.

The affordable price is solved so principal, interest, your state's property tax, and insurance together stay inside the debt-to-income limit at the current rate.

A larger down payment, a lower rate, or paying down other debts each raises the price you can afford — you can test all three above.

A worked example

A $120,000 income with $400/mo of other debts, 20% down at 6.5% (California costs):

Monthly housing budget (36% DTI)
$3,200/mo
Most expensive home
$539,759

Property tax and insurance are baked into the limit, so the affordable price is lower in high-tax states.

Who it's for

  • You're setting a realistic budget before house-hunting.
  • You want to see how existing debts shrink your budget.
  • You're weighing how much of a down payment to save.

Frequently asked questions

How much house can I afford on my salary?

Lenders cap housing at roughly 28% of gross income and total debt at 36%. On a $120,000 income with modest debts and 20% down, that supports a mid-six-figure home in a typical-cost state.

What is the 28/36 rule?

A common guideline: keep housing costs under 28% of gross monthly income and all debt payments under 36%. Many lenders stretch to 43% total, but 36% is the conservative target.

Do my other debts affect affordability?

Yes — car loans, student loans, and credit-card minimums all count toward the 36% limit, so they directly reduce how much mortgage you qualify for.

Does a bigger down payment let me afford more?

It does: a larger down payment shrinks the loan and can remove PMI, both of which free up room under the debt-to-income cap.