How much house can I afford on a $75,000 salary?

Using the conservative 28/36 rule with 20% down and a 6.5% rate, a $75,000 salary typically supports a home price around $275,000-$300,000, depending on your existing debts. Use the calculator above to see your personalized range.

Does my down payment affect how much house I can afford?

Yes -- a larger down payment means a smaller loan, which means lower monthly payments and potentially a better interest rate. With 20% down, you also avoid private mortgage insurance (PMI) -- an extra monthly fee lenders require when your down payment is under 20%; it protects the lender, not you -- saving $100-$300 per month on a typical mortgage.

Which debts count toward your debt-to-income (DTI) ratio?

Lenders count all recurring monthly debt payments: car loans, student loans, credit card minimum payments, personal loans, child support, and alimony. They typically do NOT count utilities, insurance (non-mortgage), subscriptions, or cell phone bills.

For educational purposes only — not financial advice. Learn about our editorial process

C.02 · Housing

What house can you actually afford?

Lenders will often approve you for as much as 43% of your pre-tax income going to debt. A comfortable budget usually sits well below that. We show all three — cautious, typical, stretched — so you can see where the math gets uncomfortable.

Debt-to-income limits

28/36 · 30/43 · 35/50

Housing share / total-debt share of pre-tax income

Inputs

Annual income (before taxes)

$85,000

Monthly debt paymentsCars, student loans, credit cards

$400

Down payment (% of home price)

20.00%

Interest rate

6.69%

Most home you could buy · moderate budget

$412,068

The two numbers are caps on the share of your pre-tax (gross) monthly income that can go to (1) your housing payment and (2) all your debts combined. Lower = safer.

Estimated monthly payment (loan principal & interest only): $2,125

This does not include property tax, home insurance, or PMI, which raise your real monthly cost.

What you still owe, year by year

Based on a 30-year loan at the moderate budget's top price

Year-by-year breakdown

How your payments add up · Typical budget

How this loan gets paid down over 30 years. Each year, part of your payment chips away at the loan (principal) and part is interest — this shows the split. Pick a different budget above to see how the numbers change.

Year

Principal

Interest

Balance

Progress

$3,554

$21,946

$326,101

$3,799

$21,701

$322,302

$4,061

$21,439

$318,241

$4,341

$21,159

$313,899

$4,641

$20,859

$309,259

$4,961

$20,539

$304,298

$5,303

$20,197

$298,995

$5,669

$19,831

$293,326

11%

$6,060

$19,440

$287,265

13%

$6,478

$19,022

$280,787

15%

$6,925

$18,575

$273,862

17%

$7,403

$18,097

$266,459

19%

$7,914

$17,586

$258,546

22%

$8,460

$17,040

$250,086

24%

$9,043

$16,457

$241,043

27%

$9,667

$15,833

$231,376

30%

$10,334

$15,166

$221,042

33%

$11,047

$14,453

$209,995

36%

$11,809

$13,691

$198,186

40%

$12,624

$12,876

$185,562

44%

$13,495

$12,005

$172,067

48%

$14,426

$11,074

$157,641

52%

$15,421

$10,079

$142,221

57%

$16,485

$9,015

$125,736

62%

$17,622

$7,878

$108,114

67%

$18,838

$6,662

$89,276

73%

$20,137

$5,363

$69,138

79%

$21,527

$3,973

$47,611

86%

$23,012

$2,488

$24,600

93%

$24,600

$901

100%

How we compute this

Why three numbers, not one.

It comes down to two ratios: your housing cost divided by your pre-tax income (the 'housing ratio'), and all your debt divided by your pre-tax income (the 'total-debt ratio'). Different lenders and risk tolerances use different caps.

max monthly housing payment = the smaller of: (monthly pre-tax income × housing-ratio)  or  (monthly pre-tax income × total-debt-ratio − your current monthly debt payments)

Cautious uses 28/36 (the classic rule). Typical uses 30/43 (most conventional lenders). Stretched uses 35/50 — the limits some government-backed (FHA) loans and certain banks will allow. We find the biggest loan that fits each monthly limit at your rate, then work out the home price that down payment supports.

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Frequently Asked Questions

The 28/36 rule says your monthly housing costs should not exceed 28% of your gross (pre-tax) income -- your housing share, a.k.a. the front-end ratio -- and total debt should not exceed 36% -- your total-debt share, or back-end ratio. This is the cautious standard most financial advisors recommend.

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A deep dive into home affordability -- DTI ratios, down payment strategies, PMI costs, hidden expenses, and the gap between what lenders approve and what you can comfortably spend.

Guide

How Much House Can You Actually Afford?

A realistic guide to home affordability -- beyond the bank's pre-approval number, using the 28/36 rule and real math.

What house can you actually afford?

How your payments add up · Typical budget

Why three numbers, not one.

Continue the decision

Make it a habit.

Frequently Asked Questions

What is the 28/36 rule for home buying?

How much house can I afford on a $75,000 salary?

Does my down payment affect how much house I can afford?

Which debts count toward your debt-to-income (DTI) ratio?

Guides That Pair With This Calculator

How Much House Can You Afford? A Complete Guide

How Much House Can You Actually Afford?