Income Vs Mortgage Calculator
Lenders do not ask what you feel comfortable paying. They run your income through two ratios and lend you the smaller answer. This income vs mortgage calculator applies the same front-end and back-end limits lenders use, then works backward to the maximum mortgage and home price your income supports.
Quick Answer
On a $100,000 income with $500 in monthly debts and $50,000 down at 7% for 30 years, conventional 28/36 rules allow $2,333 a month for housing. That supports a $350,718 mortgage, or a $400,718 home. The front-end ratio binds here; the debts are not the constraint.
- Two ratios, one answer. Lenders cap housing at 28% of gross income (front-end) and all debts at 36% (back-end), then use whichever gives the smaller housing payment.
- Gross income, not take-home. A $100,000 salary means $8,333 a month of qualifying income even though your paycheck is smaller.
- Debts shrink the answer fast. Every $500 of monthly debt cuts roughly $75,000 of borrowing power at current rates.
- This is the ceiling, not the target. Lenders approve the maximum; your budget decides what is actually comfortable [2].
How lenders turn income into a mortgage number
The process runs in one direction: income first, ratios second, loan amount last. There is no judgment involved, just two multiplications and a minimum [1].
Annual salary divided by 12. Bonuses and overtime count only with a two-year history.
Housing payment (P&I, taxes, insurance, HOA) capped at 28% of gross income for conventional loans.
All monthly debts plus housing capped at 36%. Subtract your debts to get the housing allowance.
The binding ratio sets your max housing payment, which converts to a loan amount at the current rate.
On the worked example, the front-end cap is $2,333 and the back-end cap is $2,500, so the front-end ratio binds. With heavy debts the back-end ratio binds instead, which is why two households with identical incomes can qualify for very different amounts [3].
What each income level can borrow
Conventional 28/36 rules, 7% 30-year fixed, $500 in monthly debts, $50,000 down. Principal and interest only; taxes and insurance reduce these figures in practice.
| Annual income | Max housing/mo | Max mortgage | Max home price |
|---|---|---|---|
| $60,000 | $1,300 | $195,400 | $245,400 |
| $80,000 | $1,867 | $280,600 | $330,600 |
| $100,000 | $2,333 | $350,718 | $400,718 |
| $125,000 | $2,917 | $438,400 | $488,400 |
| $150,000 | $3,500 | $526,100 | $576,100 |
| $200,000 | $4,667 | $701,400 | $751,400 |
Loan amounts reverse-solved from the max housing payment at 7% over 30 years. Below about $60,000 the back-end ratio (debts) starts binding instead of the front-end cap.
Which ratio binds you: front-end or back-end
The calculator names the binding ratio in your results, and it matters because each has a different fix. If the front-end ratio binds, your income is the constraint: a bigger down payment, a cheaper home, or a lower rate are the levers. If the back-end ratio binds, your debts are the constraint: paying down a car loan can unlock more house than a raise would [3].
FHA loans use 31/43 instead of 28/36, which stretches both caps for borrowers with smaller down payments, while VA loans skip the housing ratio entirely and cap total debt at 41% with no down payment required [3]. Switching programs in the calculator shows how much the answer moves.
Once you know the ceiling, check the payment against your real budget with our mortgage payment calculator, and see how the rest of your debts fit with our debt-to-income ratio calculator. If you are weighing whether to buy at all, our mortgage vs investment calculator compares paying down the loan against investing the difference.
What rival affordability calculators miss
Most affordability calculators we tested apply one ratio and hide the other, so you never learn which constraint actually limits you [4][5]. Several also quote the 3x-to-4x income rule for home price without adjusting for rates, which understates borrowing power when rates fall and overstates it when they rise [6]. A few ignore debts entirely, producing a fantasy number [7]. This calculator shows both caps, names the binding one, and converts the payment to a loan amount at your actual rate.
Frequently Asked Questions
Under conventional 28/36 rules at 7% for 30 years with $500 in monthly debts and $50,000 down, about a $350,700 mortgage, or a $400,700 home. Higher debts, a higher rate, or a smaller down payment all reduce this [2].
Lenders cap your housing payment at 28% of gross monthly income (front-end) and your total monthly debts including housing at 36% (back-end). The smaller of the two caps sets your maximum payment [1][3].
Gross income before taxes. A $100,000 salary counts as $8,333 a month of qualifying income. Lenders generally want a two-year history of stable income, especially for bonuses, commissions, and self-employment [3].
Directly and steeply. Under the back-end ratio, every dollar of monthly debt is a dollar subtracted from your housing allowance. At 7%, each $500 of monthly debt costs roughly $75,000 of borrowing power.
Often yes on paper: FHA allows 31% housing and 43% total debt ratios versus 28/36 conventional, and requires as little as 3.5% down. The tradeoff is mortgage insurance premiums that raise the monthly payment [3].
Not necessarily. Qualification is a ceiling based on ratios, not a budget. Property taxes, insurance, maintenance (budget 1-2% of home value yearly), and your savings goals all argue for buying below the max [2].
Debts, down payment, credit score (which moves the rate), and loan program all change the answer. The back-end ratio means a car payment can easily be the binding constraint [1].
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References
- Getaffordably. How Much House Can I Afford? Free Mortgage Calculator (28/36 rule and affordability table methodology). Accessed October 17, 2026.
- MLCalc. Affordability Calculator: How Much Can I Borrow (front-end/back-end ratio application with rate data). Accessed October 17, 2026.
- ServiceAgent. House Affordability Calculator (conventional, FHA, and VA DTI limits by loan type). Accessed October 17, 2026.
- Mortgage Info. How Much House Can I Afford 2026? Calculator (28/36 rule worked examples). Accessed October 17, 2026.
- JVM Lending. What Salary Do You Need to Afford a $250,000 Home? (income-required methodology and debt effects). Accessed October 17, 2026.
- MyMillennialGuide. Personal Finance Statistics 2026: Key Facts and Data (median household income $87,460, Census 2025). Accessed October 17, 2026.
- Internal Revenue Service. Publication 936: Home Mortgage Interest Deduction (itemizing vs standard deduction context). Accessed October 17, 2026.
- Nesto. Mortgage Affordability Calculator Canada (GDS/TDS ratio methodology). Accessed October 17, 2026.
- Canada Mortgage Rates. How Much Mortgage Can I Afford in Canada? (2026 Calculator Guide) (GDS/TDS and stress test examples). Accessed October 17, 2026.
- Casaplorer. How Much House Can I Afford in 2026? (salary-based affordability tables). Accessed October 17, 2026.