How it works
Lenders use the 28/36 rule: housing costs (principal, interest, tax, insurance) shouldn't exceed 28% of gross monthly income, and all debts combined shouldn't exceed 36%.
Max payment = (income ÷ 12) × 28% − taxes − insurance
This is a lender's ceiling, not a recommendation — many buyers are happier well below it.
Frequently asked questions
What is PITI?
Principal, Interest, Taxes, Insurance — the four parts of a mortgage payment. Lenders judge affordability on PITI, not just principal+interest.
Is the 28% rule strict?
Conventional lenders allow up to ~28%; FHA allows ~31%. Some buyers qualify higher with strong credit and reserves.
Should I buy the max I qualify for?
Being 'house poor' is miserable. Leave room for maintenance (1–2% of value yearly), savings and life.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.