Worked example · Free tool

Can I afford a $400,000 house on $200,000 a year?

Inside the comfortable zone

With 20% down and a 30-year loan at 6.5%, a $400,000 house costs about $2,523 a month all-in. That is 15% of gross income, under the 28% line lenders read as comfortable.

Cash needed at closing

Down payment (20%): $80,000
Closing costs (est. 3%): $12,000
Total: $92,000

Estimated monthly payment

Loan (P&I at 6.5%): $2,023
Taxes + insurance (est.): $500
Total (15% of income): $2,523

For this payment to sit under the 28% comfort line, a household needs roughly $108,112 a year. The two checks this page cannot run for you: whether you will have the $92,000 at closing without draining your emergency fund, and how many months of cushion the purchase leaves you. The calculator below runs all three with your own savings, spending, and timeline.

Run the full check with your numbers

Nearby scenarios

$300,000 on $200,000 $400,000 on $80,000 $400,000 on $100,000 $400,000 on $150,000 $400,000 on $250,000 $500,000 on $200,000 $600,000 on $200,000 $750,000 on $200,000 $1,000,000 on $200,000

Educational estimates with stated assumptions (20% down, 6.5% APR, 30-year term, 3% closing costs, 1.1% property tax, 0.4% insurance). Not financial, lending, or tax advice. Rates and costs vary by lender, location, and property.