Home Affordability Calculator

Rates matter here. The 30-year fixed rate averaged 7.28% on Oct. 1, 2026, up from 6.34% a year earlier, per Freddie Mac's Primary Mortgage Market Survey. That means the same income buys less house than it did a year ago.

Once you have a price range, you can compare mortgage lenders to see which rates and terms fit your budget.

Fill in your details, and the calculator finds the most you can spend on housing and the home price it supports. You don't need to enter a payment unless you want to test a lower one.

1. Enter your income and debts. Add your annual pretax income and your monthly debt payments, such as car loans, student loans, personal loans and credit card minimums.

2. Add your other regular bills. Put costs like childcare or insurance premiums in Monthly recurring expenses. They count toward your total monthly commitments, even though lenders may not see them on your credit report.

3. Enter your down payment. Use only the cash you'll have left after closing costs, not your total savings.

4. Set your loan terms. Change the interest rate to one a lender has quoted you. The field starts at 7.28%, the Oct. 1, 2026, Freddie Mac average. Then pick your loan term, such as 30 years.

5. Enter your monthly property taxes, homeowners insurance and HOA fees. Use numbers for the area where you plan to buy.

6. Add PMI if you're putting less than 20% down. The calculator doesn't estimate private mortgage insurance for you, so ask a lender for a monthly figure. For an FHA loan, enter the monthly mortgage insurance premium here instead.

7. Choose a target payment, if you want one. Leave Target monthly payment (optional) at 0 to see your max. Or enter a lower payment you'd prefer. If your target is higher than your max, the calculator uses your max instead.

One more tip: property taxes and insurance are entered as fixed dollar amounts. If your home price changes a lot, update them so your payment stays accurate.

Your results show the housing payment the calculator used, the home price it supports and the 36% limits behind it. Here's what each line means.

If Max affordable housing payment shows $0, your debts and recurring expenses already use up 36% of your income. To raise it, pay down debt or cut recurring costs. A bigger down payment raises your home price, but not your max payment.

The more your inputs match real quotes and local costs, the closer your result will be to what you'll actually pay.

What Interest Rate Should You Enter?

Enter the rate a lender has quoted you, if you have one. If not, use a current average. The 30-year fixed averaged 7.28% in Freddie Mac's Oct. 1, 2026, survey.

Your actual rate depends on factors like credit score, debt levels, loan type and down payment size. Borrowers with stronger credit profiles generally qualify for lower rates. If your quote looks high, review these ways to get a lower mortgage rate.

How Should You Estimate Taxes, Insurance and HOA Dues?

Use local numbers whenever you can. Property taxes and insurance vary widely by state and city. Check recent tax bills for homes in your target area, and ask an insurance agent for a quote.

Which Monthly Debts Should You Include?

Start with the debts on your credit report. Lenders typically count recurring debts, many of which appear on your credit report, according to Fannie Mae's monthly debt guidelines.

Your real budget also includes costs like childcare, subscriptions and retirement contributions. Adding them to Monthly recurring expenses gives you a more realistic picture of what you can comfortably afford. Because debts weigh heavily in your result, it helps to understand how your debt-to-income ratio affects your mortgage.

The 28/36 rule is a budgeting guideline that keeps housing at or below 28% of gross monthly income and all debt at or below 36%. It's built on your debt-to-income ratio (DTI), the share of your gross monthly income that goes to debt payments.

Think of your monthly income as a pie. DTI shows how big a slice your debts take before you pay for groceries, savings or anything else. The rule suggests:

• No more than 28% of gross monthly income on housing costs (mortgage, taxes, insurance, HOA).

• No more than 36% on total monthly debt payments, including housing.

The calculator applies the 36% limit only. It subtracts your debts from 36% of your income and gives you the rest as your max housing payment. It doesn't check the 28% housing limit separately, so if you have little or no debt, your max housing payment can go above 28%.

For example, with a gross monthly income of $7,000, 28% is $1,960 for housing and 36% is $2,520 for total debt. If your non-housing debts are $600 per month, that leaves $1,920 for housing under the 36% limit. Here the 28% and 36% limits land close together. With no debt, the 36% limit would allow $2,520 for housing, well above the 28% figure.

If you want the stricter budget, check that your housing payment stays at or below 28% of your gross monthly income. The CFPB's guide to deciding how much to spend on a home suggests setting your own comfortable housing budget before you shop.

For conventional loans sold to Fannie Mae, the maximum total DTI is generally 36%. It can rise to 45% or 50%, depending on underwriting. Those limits come from the Fannie Mae Selling Guide's debt-to-income ratio rules.

In plain terms, a lender may approve a bigger payment than the calculator's 36% limit suggests. Fannie Mae's limits apply to your total DTI, and the guide doesn't set a separate cap on housing costs alone.

Beyond ratios, lenders also consider:

• Cash reserves: Savings left after closing, often measured in months of mortgage payments.

• Employment history: Stable, predictable income, as outlined in Fannie Mae's income guidelines.

• Credit profile: Credit score and how much of your available credit you use.

• Down payment and its source: How much you put down and whether funds are your own savings or documented gifts.

On a $100,000 salary with no other debt, BestMoney's calculation puts your home price near $347,000 under the 28% housing guideline, or about $446,000 at the calculator's 36% limit. BestMoney ran the same math for other common salaries, using these assumptions:

• A 30-year fixed rate of 7.28%

• A 20% down payment, so no PMI

• Taxes and insurance estimated at 1.5% of the home price per year (our assumption, not a cited figure)

• No HOA dues or other monthly debt

BestMoney's Calculation: Home Affordability by Income, 2026

The gap between the two columns is the difference between a comfortable budget and the most the calculator allows. Treat these figures as starting points. Existing debt, a smaller down payment with PMI, or HOA dues would lower them. Enter your own debts, down payment and local costs in the calculator above for a personal estimate.

A higher rate shrinks the loan your monthly budget can support, while a bigger down payment adds to the price you can pay.

How Much Buying Power Does a Higher Rate Cost You?

A rate jump from 6.5% to 7.28% can cut about $30,000 from your loan amount. Say you can spend $2,500 a month on principal and interest on a 30-year fixed mortgage.

At 6.5%, that payment supports a loan of about $395,500, according to BestMoney's calculation. At 7.28%, the same payment supports about $365,400. That's why it pays to enter a real quote from a lender.

Do You Really Need 20% Down?

No. Many loans allow less than 20% down, yet BestMoney's 2026 Real Estate, Money, and Your Future Survey found 31.8% of respondents think it's required.

According to the CFPB's explainer on private mortgage insurance, conventional loans with less than 20% down may require PMI. If that applies to you, enter a monthly PMI estimate in the calculator. Our mortgage insurance (PMI) guide explains how it works.

To see what other buyers put down, check the average down payment by region. You may also qualify for first-time homebuyer grants.

Yes, your loan type shapes your DTI limits, down payment and loan size, so it can shift your price range.

How Do Conventional Loans Affect Your Budget?

Conventional loans follow the Fannie Mae DTI limits covered in the lender section above. Loan size matters too.

The 2026 baseline conforming loan limit for a one-unit home is $832,750, according to the FHFA's 2026 conforming loan limit announcement. If you need to borrow more in most areas, you'd generally look at a jumbo loan.

What Should You Know About FHA Loans?

The CFPB points borrowers making a low down payment toward options such as FHA loans, as noted in its PMI explainer. HUD Handbook 4000.1 sets FHA underwriting standards.

To estimate an FHA loan in the calculator, enter your planned FHA down payment and put the monthly mortgage insurance premium in the PMI field. Then ask lenders how they apply HUD's standards to your file.

How Do VA Loans Change What You Can Afford?

VA loans often let eligible borrowers buy with no down payment, according to the VA's purchase loan guidance. That applies when the sales price isn't higher than the appraised value, which can put a home in reach sooner. Learn how a VA loan works before you set your budget.

The calculator doesn't include closing costs, maintenance, repairs, utilities or future changes to your income. First-time buyers often underestimate these costs. To avoid surprises, plan separately for:

• Closing costs: Fees and prepaid items you pay when you close. Set this cash aside before you decide how much to enter as your down payment.

• Maintenance and repairs: Costs vary with the home's age and condition, with older homes often needing more.

• Utilities: Heating and cooling a larger space typically costs more than renting, especially in extreme climates.

• HOA dues: Monthly association fees and special assessments can change over time.

• Transportation: Longer commutes or additional vehicles can significantly increase annual costs.

Many people use their calculator result as a ceiling rather than a target. Choosing a less expensive home may leave budget room for goals like retirement contributions and emergency savings, depending on your circumstances.

To plan for these costs before you shop, work through our first-time home buyer checklist.

This guide is for U.S. buyers who want a realistic price range before talking to lenders.

• If you're a first-time buyer, aim for the 28% housing guideline and read our first-time homebuyer guide.

• If you carry high monthly debt, pay it down before stretching your DTI.

• If you're a veteran or service member, check whether a VA loan lowers your upfront costs.

• If you're moving up, count expected sale proceeds from your current home toward your down payment.

How much house can I afford with a $100,000 salary?

BestMoney's calculation puts it near $347,000 if you keep housing at 28% of gross income, or about $446,000 at the calculator's 36% limit. Both assume a 7.28% rate, 20% down and no other debt.

Why is my home price lower when I enter a target payment?

Your home price is based on your target or your max, whichever is lower. A target below your max means a smaller loan, so a lower price. Leave the target at 0 to see the most you can afford.

Is the 28/36 rule what lenders use to approve me?

No. It's a budgeting guide, and Fannie Mae allows total DTI up to 45% or 50% for some conventional borrowers.

Do I need 20% down to buy a home?

No. Many loans allow less than 20% down, though conventional loans with less down may require PMI.

Should I include bonuses or overtime in my income?

Only if it's consistent. Fannie Mae's bonus and overtime income rules recommend a two-year history, though 12 months may work with offsetting factors.

Is a calculator estimate the same as preapproval?

No. A calculator gives you an estimate, while a lender preapproval verifies your income, credit and assets.

• Freddie Mac, Primary Mortgage Market Survey, Oct. 1, 2026

• Fannie Mae, Selling Guide B3-6-02, Debt-to-Income Ratios

• Fannie Mae, Selling Guide B3-6-05, Monthly Debt Obligations

• Fannie Mae, Selling Guide B3-3.1-01, General Income Information

• Fannie Mae, Selling Guide B3-3.3-02, Bonus, Commission, Overtime, and Tip Income

• Federal Housing Finance Agency, FHFA Announces Conforming Loan Limit Values for 2026

• CFPB, Figure Out How Much You Want to Spend

• CFPB, What Is Private Mortgage Insurance?

• U.S. Department of Housing and Urban Development, Single Family Housing Policy Handbook 4000.1

• U.S. Department of Veterans Affairs, VA-Backed Purchase Loan

• BestMoney, 2026 Real Estate, Money, and Your Future Survey, July 2026 (1,055 respondents)

• BestMoney, salary and rate calculations, October 2026

Run the calculator with a quoted rate and treat the result as a ceiling. Then get preapproved and compare mortgage rates and lenders side by side before you apply.