How Much House Can I Afford?
Based on the 28/36 DTI rule used by US lenders, see your real buying power in seconds.
Your Finances
Loan Details
Estimated Max Home Price
$277,000
with $40,000 down → $237,000 loan
manageable
Manageable but watch your other debts carefully.
Monthly Payment Breakdown
How lenders decide what you can borrow
US mortgage lenders commonly apply the "28/36 rule": your total housing costs (principal, interest, taxes and insurance) shouldn't exceed 28% of your gross monthly income, and your total debt payments (including housing) shouldn't exceed 36%. Some lenders will go higher, up to 43-50% for well-qualified borrowers, but staying within the traditional guideline generally means an easier approval process and a healthier financial cushion.
What this calculator doesn't capture
The 28/36 rule is a guideline, not a guarantee
Lenders use debt-to-income ratios as a key approval factor, but your actual approval also depends on credit score, employment history, cash reserves, and the specific lender's policies.
PMI adds a real ongoing cost
Putting down less than 20% typically triggers Private Mortgage Insurance, adding to your monthly payment until you reach 20% equity, factor this into your true monthly cost, not just principal and interest.
Property tax varies enormously by location
Effective property tax rates range from under 0.3% of home value annually in some states to over 2% in others, this calculator uses an estimate, but check actual local rates before committing to a home price.
Don't max out your approval amount
Just because a lender approves you for a certain amount doesn't mean you should spend it all, many financial planners recommend staying comfortably below your maximum to leave room for savings, emergencies, and lifestyle flexibility.
Related tools
Worked example: $90,000 income and $400 of other debt
Monthly gross income is $7,500. The 28% housing limit is $2,100. The 36% total debt limit is $2,700, and after $400 of other debt payments that leaves $2,300 for housing. The lower figure applies, so the guideline maximum for housing is $2,100 a month, covering principal, interest, taxes and insurance.
Frequently Asked Questions
Is the 28/36 rule a hard limit?
No. It is a guideline lenders commonly use. Some lenders approve higher ratios, but that does not mean the payment is comfortable.
What costs are not in the mortgage payment?
Maintenance, utilities, HOA fees and repairs. Many owners set aside about 1% of the home value yearly for upkeep.
How much deposit do I need?
It depends on the loan. Some loans allow low down payments, but under 20% usually means paying mortgage insurance.
