Purchasing Power

How much house can I afford?

Stop guessing. Enter your salary and debts to see your Max Home Price, Rent Budget, and Safe Car Payment instantly.

Your Finances

Annual Income (Gross)

Monthly Debts (Car, Loans)

Down Payment Savings

Location / Mode

Max Home Price

$227,652

Based on a monthly budget of $1,750

Using the 28/36 Rule. Your debts reduce your buying power by roughly $40,000.

Max Rent Budget

$1,875/mo

Based on 30% of gross income rule.

Car Affordability

$32,625

Using the 20/4/10 rule (Conservative).

Debt-to-Income Health

34.4% Ratio

Healthy (<36%)Stretch (<43%)High Risk (>43%)

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How is affordability calculated?

We use the 28/36 Rule, which is the standard used by 90% of US mortgage lenders.

28% Front-EndMaximum 28% of your gross income should go to housing (Mortgage + Tax + Insurance).
36% Back-EndMaximum 36% of your income should go to TOTAL debt (Housing + Cars + Student Loans + Credit Cards).

Income is Gross, Not Net

Lenders always look at your Gross Income (before taxes). If you earn $5,000/mo but take home $3,800, use $5,000 for this calculator.

The Car Payment Trap

Car payments are 'affordability killers'. A $600 car payment reduces your home buying power by about $75,000. Pay it off first if you can.

UK vs US Rules

In the US, debt-to-income (DTI) is king. In the UK, it's about income multipliers (usually capped at 4.5x your annual salary).

Affordability FAQs

What is the 28/36 rule?

The 28/36 rule is the golden standard lenders use. It states you should spend max 28% of gross income on housing (PITI) and max 36% on TOTAL debt (housing + cars + loans). Our calculator uses this to keep you safe.

Does my student loan affect how much house I can buy?

Yes, significantly. Student loans count towards your 'Back-End DTI' (the 36% limit). A $400/month student loan payment reduces your home buying power by roughly $50,000 - $60,000.

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

Assuming a 20% down payment and no other debt, you typically need a gross annual income of roughly $100,000 to $115,000 to afford a $400k home comfortably.

Does this work for the UK or Europe?

Yes! Switch the 'Location' toggle to UK or EU. The calculator adjusts the math (e.g., using the UK's 4.5x Income Multiplier cap instead of US DTI rules).