How much house can I afford on a $80,000 salary?

With an $80,000 salary, no other debts, 20% down, and a 36% DTI limit at 6.75%, you could afford roughly a $355,000 home. With $400/month in existing debts, that drops to about $270,000.

What is the DTI ratio for mortgage qualification?

Most conventional lenders prefer a total DTI (all debts including mortgage) below 36%. Many lenders will approve up to 43%, and FHA loans allow up to 50% with compensating factors. A lower DTI gives you more favorable terms.

Does the 28% rule still apply for mortgages?

The 28% front-end rule suggests your housing payment shouldn't exceed 28% of gross monthly income. The 36% back-end rule covers all debts. These are guidelines, not hard limits — lenders ultimately decide based on your full financial picture.

Should I include property tax and insurance in my affordability calculation?

Yes, always include all housing costs (PITI: principal, interest, taxes, insurance) in your affordability calculation. Many buyers underestimate total costs by only considering the principal and interest payment. This calculator accounts for all components.

How does down payment size affect what I can afford?

A larger down payment reduces your loan amount, which lowers your monthly P&I payment, letting you afford a higher-priced home within the same budget. It also helps you avoid PMI (when 20%+ down) and often qualifies you for better rates.

Home Affordability Calculator

How much house can you afford? Enter your income, debts, and down payment to find your maximum home price with full payment breakdown.

Annual Gross Income

Monthly Debt Payments

Down Payment

Interest Rate

Loan Term

Max DTI Ratio

Maximum Home Price

$343,955

Based on 36% DTI with $90,000 annual income

Principal & Interest: $1,785

Property Tax: $315

Insurance: $100

Max Loan Amount

$275,164

Down Payment Needed

$68,791

Est. Monthly Payment

$2,200

Your DTI Ratio

36.0%

How to Use This Affordability Calculator

This calculator has two modes to help you understand what you can afford from different angles.

By Income Tab

Enter your Annual Gross Income and Monthly Debt Payments (car loans, student loans, credit cards). Set your expected Down Payment %, interest rate, and loan term. The calculator applies the DTI ratio to find the maximum home price where your total housing costs fit within your debt limits. Use "More options" to factor in property taxes, insurance, and HOA fees for a more accurate result.

By Monthly Payment Tab

Already know what monthly payment you're comfortable with? Enter that amount and the calculator works backwards to find the maximum home price you can buy. This is useful when you have a specific budget target regardless of your income calculation.

The DTI Formula for Home Affordability

Max Monthly Housing = (Gross Monthly Income × DTI%) − Monthly Debts

Solve for Home Price (P):
P × loan% / pvFactor + P × taxRate/1200 = Max Monthly Housing − HOA − Insurance/12

Where:
loan% = 1 − down payment %
pvFactor = [(1+r)^n − 1] / [r × (1+r)^n]
r = monthly rate, n = total payments

This calculator simultaneously solves for the home price that satisfies your budget constraint across principal, interest, taxes, and insurance — giving you a more accurate answer than simpler tools that only consider P&I.

Example: The Martinez Family in Dallas, TX

Combined Income: $120,000 | Monthly Debts: $600

Monthly Gross Income	$10,000
Max Total DTI (36%)	$3,600/mo
Existing Monthly Debts	−$600
Max Housing Budget	$3,000/mo
Down Payment (20%)	20%
Rate / Term	6.75% / 30yr
Property Tax Rate (TX avg)	1.7%
Max Home Price	~$470,000
Loan Amount	~$376,000
P&I Payment	~$2,440
Property Tax/mo	~$665
Insurance/mo	~$100

Note: Texas has higher property taxes (~1.7% vs national average of ~1.1%), which meaningfully reduces affordability compared to lower-tax states. Always use your local tax rate.

Frequently Asked Questions

With an $80,000 salary, no other debts, 20% down payment, 6.75% rate, and 36% DTI limit, you could afford roughly a $355,000 home. With $400/month in existing debts (car payment, student loans), that drops to about $270,000. Use this calculator with your specific debts and down payment for a precise number.

Most conventional loan lenders prefer a total DTI (all monthly debts including the new mortgage) below 36%. Many will approve up to 43%, which is also the FHA standard. Some lenders may allow up to 50% DTI with compensating factors like large cash reserves or an excellent credit score. A lower DTI improves your approval odds and often results in better loan terms.

Financial experts generally advise against buying at your absolute maximum. Leave room for maintenance costs (budget 1-2% of home value per year), unexpected repairs, property tax increases, and life changes. A common approach is to target 25-30% DTI rather than the maximum 36-43%. This provides a financial buffer and reduces stress.

Yes, a larger down payment reduces your loan amount and monthly P&I payment, allowing more of your housing budget to support a higher home price. Going from 10% to 20% down on the same income can increase your maximum home price by 10-15%. Additionally, 20%+ down eliminates PMI, further reducing your monthly payment.

The 28/36 rule says: spend no more than 28% of gross monthly income on housing (front-end DTI) and no more than 36% on all debts combined (back-end DTI). This is a conservative guideline that leaves plenty of room for savings and emergencies. Set the DTI limit to 28% in this calculator for the front-end rule, or 36% for the back-end rule.