🏠 Mortgage Calculator

Can you afford that mortgage?

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

→Lenders use the 28/36 rule: housing costs under 28% of gross income, total debt under 36%.

→The absolute max DTI most lenders allow is 43% — FHA loans can go to 50% in some cases.

→Every 1% increase in interest rate on a $300k loan adds ~$170 to your monthly payment.

28%

Max housing cost of gross income

36%

Max total debt ratio (28/36 rule)

30yr

Most common mortgage term

20%

Ideal down payment to avoid PMI

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 has lower monthly payments but you pay nearly double the home's price in total interest.

A 15-year mortgage cuts total interest roughly in half — but monthly payments are 40-50% 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 — right at the absolute limit most lenders allow. You'd have very little margin for other debts or emergencies. Most financial advisors would call this too 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.