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Can you afford that mortgage?

The 28/36 rule, your DTI, your leftover money — all in one instant check. No bank appointment needed.

→A common guideline is the 28/36 rule: housing costs under 28% of gross income, total debt under 36%.
→Many lenders prefer a total DTI between 36% and 43%. Some programs, such as FHA loans, can approve higher ratios (up to about 50%) with strong compensating factors.
→On a $300,000 30-year loan, each 1-point rise in the interest rate (for example from 6.5% to 7.5%) adds roughly $200 to the monthly principal and interest payment.
28%
Guideline: housing cost as % of gross income
36%
Guideline: total debt as % of gross income (28/36 rule)
30yr
Most common mortgage term
20%
Ideal down payment to avoid PMI

Your Numbers

Include mortgage insurance if your loan requires it: PMI on conventional loans with less than 20% down, or the monthly MIP on FHA loans. Lenders count these costs in your DTI.

Your Verdict

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The 28/36 Rule explained

Banks use this rule to decide if you can afford a mortgage. Your monthly housing cost (mortgage + insurance + taxes) should not exceed 28% of your gross monthly income.

Your total monthly debt — housing plus car payments, credit cards, student loans — should not exceed 36%. Our calculator flags when either threshold is crossed.

What really drives your mortgage payment

Three factors move your payment the most: the loan amount, the interest rate, and the term. A 30-year term lowers the monthly payment, but at about 7% the total interest comes to roughly 1.4 times the amount you borrow.

At rates between 6% and 7%, a 15-year mortgage cuts total interest by more than half, but the monthly payment is roughly 35–45% higher. Use the calculator to find the right balance for your income.

Common questions

How much house can I afford on a $80,000 salary?
On $80,000/year (~$6,667/month gross), the 28% rule allows up to $1,867/month for housing costs. At current rates (~7%), that supports a mortgage of roughly $280,000–$300,000 over 30 years, before factoring in property taxes and insurance.
Is a $2,500 mortgage too much on a $70k salary?
On $70,000/year (~$5,833/month gross), a $2,500 mortgage payment represents 43% of gross income, which is at the upper end of what many lenders accept. That leaves very little margin for other debts or emergencies, so many advisors would call it aggressive.
Do I need 20% down to get a mortgage?
No — FHA loans allow as little as 3.5% down, and conventional loans can go as low as 3%. However, putting less than 20% down means paying Private Mortgage Insurance (PMI), which adds $50–$200/month to your payment depending on the loan size.

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