How Much House Can I Afford on a $100,000 Salary?
On a $100k salary, a typical buyer can afford roughly a $400,000–$450,000 home. Your exact number depends on your debts, down payment, and rate — the answer below updates the moment you change them.
On a $100,000 salary, you can afford a home priced around $409,000.
That’s a max payment of about $2,330/mo (principal & interest) under the 28% rule — assuming $40,000 down, a 6.5% rate, and ~$500/mo of other debt. Adjust for your situation ↓
Home price split
How you compare
What you can afford vs. your county’s median home value
🏠 Get pre-qualified with a lender
Get quotesHow lenders judge affordability
Lenders use debt-to-income ratios: roughly 28% of gross income toward housing and 36% toward all debt are common limits. This tool finds the payment those rules allow, then works backward to a loan and price. It treats the budget as principal and interest, so once you add property tax and insurance your realistic price is a bit lower — a useful, conservative starting point.
How it’s calculated
Max payment = lesser of (front-end % of income) and (back-end % − monthly debts). Max loan works backward from that payment; price = loan + down payment. Annual property tax, insurance, HOA, and (if you opt in) PMI are converted to monthly amounts and subtracted from the allowed payment before sizing the loan; preset DTI options apply 28/36 (conventional), 31/43 (FHA), 29/41 (USDA guaranteed loan), or a back-end-only limit (VA 41% or a chosen 10–50%), and in fixed-budget mode the monthly budget (less tax, insurance, HOA, and maintenance) is used directly as the P&I payment. PMI defaults to off (down payment 20%+): switch "Apply PMI to affordability?" to yes if your down payment will be under 20% so the estimate accounts for that added monthly cost.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Worked example
On a $100,000 salary with $500 of monthly debt and $40,000 down at 6.5%, the 28% rule supports about a $409,000 home — a ~$369,000 loan plus your down payment. Trim your other debt to $0 and it rises toward $430,000; push the rate to 7.5% and it falls to about $380,000.
Common mistakes
- Treating the maximum as a comfortable budget.
- Forgetting taxes and insurance lower real affordability.
Where it is used
- Setting a home-price budget before shopping.
- Seeing how paying down debt raises your budget.
Frequently asked questions
What are the 28/36 rules?
Guidelines that cap housing at ~28% of gross income and total debt at ~36%. Some loan programs allow higher.
Does this include taxes and insurance?
The payment is principal and interest. Property tax, insurance, and HOA reduce what you can actually afford, so treat the result as a ceiling.
Should I borrow the maximum?
Often no. Borrowing below your limit leaves room for savings, emergencies, and lifestyle.
Do I need to pay PMI?
Conventional loans generally require private mortgage insurance when your down payment is below 20% of the home price. Enter an annual PMI estimate and set "Apply PMI to affordability?" to yes to include it in your monthly housing cost; leave it at no once you reach 20% down, since PMI usually drops off at that point.