How much house can I afford on a $100,000 salary?

Using the 28% rule, your maximum monthly payment should be about $2,333. At current rates (6.5–7%), that supports a home price of approximately $350,000–$380,000 with 20% down, or $280,000–$300,000 with 5% down including PMI.

What is a good mortgage interest rate in 2026?

As of early 2026, average 30-year fixed rates are 6.5–7.0%. A rate below 6.5% is considered good. Rates below 6% are excellent and typically require a credit score of 760+ and 20%+ down payment.

Should I get a 15-year or 30-year mortgage?

A 30-year mortgage has lower monthly payments (better cash flow), while a 15-year mortgage saves significantly on total interest. On a $300,000 loan, the 15-year option saves approximately $200,000 in interest but costs about $800 more per month.

What is PMI and when can I remove it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5–1% of the loan annually ($125–250/month on a $300,000 loan). You can request removal once your loan-to-value ratio reaches 80%.

How much should I put down on a house?

20% down eliminates PMI and gets the best rates. However, many buyers start with 3–5% using FHA or conventional loans. The trade-off: lower down payment means higher monthly payment due to PMI and a larger loan balance.

Free Mortgage Calculator Guide 2026: Monthly Payment, Rates & Amortization

A mortgage calculator estimates your monthly home loan payment based on the loan amount, interest rate, loan term, and additional costs like property taxes, insurance, and PMI.

What Is a Mortgage Calculator?

A mortgage calculator is a financial planning tool that estimates your monthly home loan payment based on the loan amount, interest rate, and term length. It helps homebuyers understand what they can afford before committing to the largest purchase of their lives.

According to the Federal Reserve H.15 release, average 30-year fixed mortgage rates in early 2026 are approximately 6.5–7.0%. On a $350,000 loan, that difference means $117/month — or $42,120 over 30 years.

How to Calculate Your Mortgage Payment

Enter your home price: The total purchase price of the property.
Subtract your down payment: Typically 3–20%. Below 20% usually requires PMI.
Set your interest rate: Your quoted annual rate from lenders.
Choose your loan term: 30-year (lower payments) or 15-year (less total interest).
Add property taxes and insurance: These are escrowed into your monthly payment.

Try ConvertMart's free mortgage calculator — includes PMI, taxes, insurance, and a full amortization schedule.

Expert Mortgage Tips Most Buyers Miss

The 28/36 rule: Lenders prefer your mortgage payment under 28% of gross monthly income and total debt under 36%. A $100,000/year household should target payments under $2,333/month.
One extra payment per year reduces a 30-year mortgage by 4–5 years and saves tens of thousands in interest.
PMI drops at 80% LTV: Once equity reaches 20%, request PMI removal — saves $100–300/month on a typical loan.
15-year vs 30-year: A 15-year mortgage saves approximately $200,000 in interest on a $300,000 loan at 6.5%, but monthly payments are $800 higher.
Rate buydown math: 1 point (1% of loan) typically reduces rate by 0.25%. On a $400,000 loan, that's $4,000 upfront to save ~$67/month — breakeven at 60 months.

Frequently Asked Questions

How much house can I afford on a $100,000 salary?: Using the 28% rule, your maximum monthly payment should be about $2,333. At current rates (6.5–7%), that supports a home price of approximately $350,000–$380,000 with 20% down, or $280,000–$300,000 with 5% down including PMI.
What is a good mortgage interest rate in 2026?: As of early 2026, average 30-year fixed rates are 6.5–7.0%. A rate below 6.5% is considered good. Rates below 6% are excellent and typically require a credit score of 760+ and 20%+ down payment.
Should I get a 15-year or 30-year mortgage?: A 30-year mortgage has lower monthly payments (better cash flow), while a 15-year mortgage saves significantly on total interest. On a $300,000 loan, the 15-year option saves approximately $200,000 in interest but costs about $800 more per month.
What is PMI and when can I remove it?: Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5–1% of the loan annually ($125–250/month on a $300,000 loan). You can request removal once your loan-to-value ratio reaches 80%.
How much should I put down on a house?: 20% down eliminates PMI and gets the best rates. However, many buyers start with 3–5% using FHA or conventional loans. The trade-off: lower down payment means higher monthly payment due to PMI and a larger loan balance.

Related Calculators

Browse all 311+ free online calculators