CanYouAffordIt?Calculate

House reality check

Can I Afford a $1,000,000 House?

$1,000,000 is the threshold for 'jumbo loan' territory in most U.S. markets. Requires real income, real reserves, and real comfort with property tax + insurance as a meaningful second mortgage.

Estimates only. Not mortgage approval, not lender precision, not legal or tax advice.

Default verdict (you can edit any of this)

Manageable

Workable on $300k–$360k household income with reasonable other debt.

30 years at 7% with 20% down ($200k) puts P&I at $5,322/mo. Add tax (~$917), insurance (~$380), no PMI = ~$6,619 all-in. On $28,000 gross monthly ($336k/yr) that's 24% — comfortably 'Manageable'. Below $24,000 gross, the same purchase starts crossing into 'Stretching' territory.

All-in monthly
$6,619
Income needed (28% rule)
$283,675
Housing % of gross
23.6%
Total DTI
27.2%

Run the numbers on a $1,000,000 house

Edit anything. Every field updates the results live.

Sticker price of the home.

Cash you bring to closing.

Annual interest rate.

Years (most loans are 30).

Annual property tax. We split into months.

Homeowner's insurance monthly.

0 if no HOA.

Private mortgage insurance. 0 with 20%+ down.

Pre-tax income across all earners.

Car loans, student loans, credit-card minimums.

Estimates only. Not mortgage approval, not financial advice. Numbers vary by lender, credit, state, ZIP, and the day.

Costs people forget

The line items that don’t show up on the loan estimate but absolutely show up in the bank account.

  • Jumbo-loan territory

    Above the conforming limit ($766,550 in 2024 for most counties, higher in HCOL areas), you're shopping jumbo lenders. Rates can be slightly lower, reserves required are higher, and pricing varies more by lender.

  • Insurance is now a serious line

    $380/mo national; $700-$1,500/mo in Florida / Louisiana / wildfire CA. Some markets are losing insurers entirely — premium can double overnight.

  • Property tax at $1M

    $11,000/yr (1.1%) on average; NJ / IL / TX can be $20,000–$30,000/yr. The same house in Houston vs Sacramento is a different monthly.

  • Closing costs: $20–$50k

    Title, escrow, prepaid escrows, lender fees, plus the inevitable inspection findings. Out-of-pocket.

  • Maintenance: $10,000/yr+

    Bigger systems, more square footage, more landscaping, pool / spa / detached structures.

  • Furniture + first-year setup

    $50k–$150k is common when moving into a $1M home. Empty rooms multiply. Window treatments alone run $5k+ in larger homes.

Reality check before you bid

  • Aim for housing ≤ 28% of gross; total DTI ≤ 36%. At $28,000 gross + $1,000 debt + $6,619 housing, DTI is 27% — solidly 'Manageable'.

  • Drop income to $20,000 gross and the same purchase is 33% housing — 'Stretching'.

  • Insurance has been the fastest-rising line item in coastal/wildfire markets. Get a fresh quote.

  • Jumbo lenders typically want 6-12 months of housing in cash reserves. Don't deplete savings to make the down payment.

What salary carries a $1,000,000 house?

A few salary reality checks that line up reasonably with this price point.

Cars that fit a $1,000,000 household

Curated picks. Open a car page to run the affordability calculator with your real income and APR.

Build this house into something bigger

FAQ: Affording a $1,000,000 house

Short, honest answers — not pre-approval.

  • What income do I need for a $1,000,000 house?
    Roughly $300,000–$360,000/yr to keep housing near 28% of gross with average tax rates and modest other debt. Doctor-loan and jumbo programs sometimes stretch this.
  • What is the monthly payment on a $1,000,000 house?
    At 7% / 30 years with 20% down: ~$6,619 all-in (P&I + tax + insurance). HCOL markets push higher with property tax.
  • How much down payment do I need for a $1,000,000 home?
    20% = $200,000 to clear PMI. Plus 2-5% in closing costs ($20-$50k). Some jumbo / doctor programs allow 10% down with no PMI but at higher rates.
  • Does this include taxes, insurance, HOA, and PMI?
    Yes — all five line items roll into the monthly payment. Edit any field for your specific scenario.
  • Is this mortgage approval?
    No. Educational ballpark only. Jumbo loans in particular have lender-specific reserve and credit requirements no website can model.

This is not financial advice

CanYouAffordIt is for entertainment and ballpark planning only. Real insurance quotes, sales tax rules, dealer fees, loan approvals, and maintenance costs vary by location, vehicle, and credit profile. Before signing a contract, talk to a human you trust — and read the fine print.

See also other house reality checks: $200,000 house, $250,000 house, $300,000 house, $350,000 house, $400,000 house, $450,000 house, $500,000 house, $600,000 house, $750,000 house, $1,500,000 house. Canonical: https://trycanyouaffordit.com/can-i-afford-a-1000000-house.