How Much Mortgage Can I Afford? — Affordability Calculator 2026
A realistic budget for your home purchase.
The 28/36 Rule of Affordability
Most lenders recommend keeping housing costs below 28% of your gross monthly income and total debts below 36%. For a $7,000 monthly income, that means up to $1,960 for housing and $2,520 for all debts combined.
How Down Payment Changes Your Budget
A larger down payment means a smaller loan, lower monthly payments and possibly no PMI. A 20% down payment also unlocks the best rates and avoids private mortgage insurance entirely.
Affordability by Income
The table below shows a typical affordable home price range for different annual incomes, assuming a 20% down payment and a 6% interest rate:
| Annual Income | Affordable Home Price |
|---|---|
| $60,000 | $200,000 – $280,000 |
| $80,000 | $280,000 – $370,000 |
| $100,000 | $350,000 – $470,000 |
Debts, Rates and Property Taxes
Existing debts reduce how much a lender will approve, and higher interest rates shrink your buying power. Don't forget property taxes and insurance — a mortgage calculator with taxes and insurance gives you the true monthly number.
Frequently Asked Questions
What percentage of income should go to a mortgage?
Most experts recommend keeping your housing payment at or below 28% of your gross monthly income, and your total debt payments below 36%.
How much house can I afford with a $60,000 salary?
With a $60,000 salary, the 28% rule gives you $1,400 a month for housing. Depending on taxes, insurance and rates, that typically supports a home price between $200,000 and $280,000.
Should I include taxes and insurance in my budget?
Yes. Property taxes and insurance can add hundreds of dollars to your monthly payment. Always estimate your budget with taxes and insurance included.