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How to calculate how much house I can afford?
$100K of mortgage debt at 4%, 30 years will result in a $477/mo mortgage. It would take about $23K in income to have 25% of the monthly income cover the mortgage.  This means, that with no other large debts, a bank will lend you about 4X your income.  If, instead of 25%, we decided that having 20% of income go to the mortgage, the ratio drops to just over 3X.  In the end, it comes down to keshlam's advice regarding a budget. I think the question can't be answered as asked, given the fact that you offer no numbers. For the average person, credit card debt, student loans, and cars payments add up to enough to chip away at the amount the bank will lend you. Since (per one of the linked questions) the maximum debt service should be 36%, you start with that and subtract all current payments.  If this doesn't suffice, let us know what, exactly you're looking for .