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
$285,000
with $40,000 down → $245,000 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.
