What’s the 28/36 rule?

PITI ≤ 28% of gross monthly income; total debt payments ≤ 36%. Lenders often go beyond these in pre-approvals; they’re still a useful personal guardrail.

Should I use gross or net income?

Lenders use gross. For personal budgeting, net is more realistic. We recommend running both.

Why are pre-approvals usually higher than the 28% rule suggests?

Lenders use the maximum DTI ratios allowed by their loan products: conforming conventional 43-45% DTI, FHA up to 50%, VA up to 60%+. Those upper limits are based on what you can technically pay without defaulting; they don't account for retirement savings, college savings, lifestyle, vacations, or hobbies. A pre-approval at 45% DTI means PITI is 35-40% of gross income. That's lender-comfortable but lifestyle-tight: you'll likely have $200-500/month less for everything beyond core expenses. Most personal-finance experts recommend the 28% rule as a self-imposed ceiling.

How much house can I afford on a $100K salary?

Conservative (28% rule): $100K gross = $8,333/month gross = $2,333/month max PITI. With 20% down at 6.75% rate, plus typical 1.2% property tax and $100/mo insurance, that's about $310K-330K home. Aggressive (lender max 45% DTI): $375K-450K home, but you'd be house-poor. Real-world balance: aim for $300K home if you also want to max retirement savings (15% of gross), build emergency fund (3-6 months expenses), and have flexibility for unexpected costs. Higher home prices require either higher income or lower other-financial-priorities.

What if I can't afford a home in my city?

Three options: (1) Wait — save more down payment, advance career to higher salary, or wait for market correction (long-term price patience often works). (2) Move — many cities, suburbs, or remote areas have homes 30-50% cheaper than HCOL areas. Remote work makes this increasingly viable. (3) Adjust expectations — smaller home, longer commute, fixer-upper, multi-family with house-hacking strategy. Renting indefinitely in HCOL areas isn't financial failure; many couples find renting cheaper than the same lifestyle of owning when accounting for opportunity cost of down payment.

How does buying with my partner change affordability?

Combined gross income raises the 28% ceiling proportionally: two $80K incomes = $160K combined = $4,440/month max PITI. But: lenders evaluate both credit scores (the lower one often determines rate), both DTI ratios, and require both signatures. If one partner has bad credit or a recent bankruptcy, applying alone with the better-credit partner sometimes yields a better rate than joint applying. Marriage isn't required — unmarried couples can co-own. Have a written agreement covering: ownership split, what happens if one party leaves, how repairs are paid for. A real estate attorney's $500-1500 fee is cheap insurance.

Money & Finance · Free tool

Mortgage Affordability Calculator

Calculate how much home you can afford instantly. Based on your income and debt, using the 28/36 rule lenders actually apply. Free and no sign-up required.

Updated June 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)HOA ($ / mo)PMI (% / yr)

Monthly payment (all in)

$2,643

P&I

$2,043

Property tax

$350

Insurance

$100

PMI (avg)

$149

drops off in ~8 yr

Total cost over 30 years

Down payment: $35,000
Loan amount: $315,000
Total interest: $420,510
Total PMI: $14,500
Total cost of home: $947,010

P&I uses the standard fixed-rate amortization formula. PMI assumes conventional rules (drops off when balance ≤ 80% of original price). Taxes, insurance, and HOA are held flat — in reality they drift up over time.

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What it does

A mortgage affordability calculator that shows full PITI on various home prices. Lenders use the 28/36 rule: PITI should be no more than 28% of your gross monthly income, and total debt payments (PITI + car + student loans + minimum credit card payments) should stay under 36%.

Run prices up and down until the PITI lands at or below 28% of your gross monthly. Then pressure-test it: could you still hit all your other financial goals (emergency fund, retirement, kids) at that payment? If the answer is “only if nothing goes wrong,” go lower.

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Example input & output

Input

Gross monthly income: $9,000 (example)
28% of that: $2,520
If your target PITI ≤ $2,520/mo: about a $310,000 home with 10% down at 6.75%.

Output

Home price: $310,000
Down: $31,000
P&I: $1,810/mo
Taxes: $310/mo
Insurance: $80/mo
Total PITI: $2,200/mo

Pre-approvals often stretch higher than the 28% rule; just because a lender will lend it doesn’t mean you should borrow it.

How to use it

Start with a candidate home price.
Enter your realistic down payment.
Enter today’s mortgage rate.
Add property tax rate and insurance estimate.
Check PITI against 28% of your gross monthly income.

When to use this tool

Early in the home-buying process.
When a pre-approval comes back higher than you expected — check whether you can actually afford it.

When not to use it

As the only decision input — budget priorities (retirement, kids, travel, job risk) matter too.

Common use cases

Figuring out a realistic home-price range before shopping.
Running the 28/36 check on a lender’s pre-approval amount (often higher than you should actually spend).
Comparing what different down-payment amounts enable.

Frequently asked questions

What’s the 28/36 rule?: PITI ≤ 28% of gross monthly income; total debt payments ≤ 36%. Lenders often go beyond these in pre-approvals; they’re still a useful personal guardrail.
Should I use gross or net income?: Lenders use gross. For personal budgeting, net is more realistic. We recommend running both.
Why are pre-approvals usually higher than the 28% rule suggests?: Lenders use the maximum DTI ratios allowed by their loan products: conforming conventional 43-45% DTI, FHA up to 50%, VA up to 60%+. Those upper limits are based on what you can technically pay without defaulting; they don't account for retirement savings, college savings, lifestyle, vacations, or hobbies. A pre-approval at 45% DTI means PITI is 35-40% of gross income. That's lender-comfortable but lifestyle-tight: you'll likely have $200-500/month less for everything beyond core expenses. Most personal-finance experts recommend the 28% rule as a self-imposed ceiling.
How much house can I afford on a $100K salary?: Conservative (28% rule): $100K gross = $8,333/month gross = $2,333/month max PITI. With 20% down at 6.75% rate, plus typical 1.2% property tax and $100/mo insurance, that's about $310K-330K home. Aggressive (lender max 45% DTI): $375K-450K home, but you'd be house-poor. Real-world balance: aim for $300K home if you also want to max retirement savings (15% of gross), build emergency fund (3-6 months expenses), and have flexibility for unexpected costs. Higher home prices require either higher income or lower other-financial-priorities.
What if I can't afford a home in my city?: Three options: (1) Wait — save more down payment, advance career to higher salary, or wait for market correction (long-term price patience often works). (2) Move — many cities, suburbs, or remote areas have homes 30-50% cheaper than HCOL areas. Remote work makes this increasingly viable. (3) Adjust expectations — smaller home, longer commute, fixer-upper, multi-family with house-hacking strategy. Renting indefinitely in HCOL areas isn't financial failure; many couples find renting cheaper than the same lifestyle of owning when accounting for opportunity cost of down payment.
How does buying with my partner change affordability?: Combined gross income raises the 28% ceiling proportionally: two $80K incomes = $160K combined = $4,440/month max PITI. But: lenders evaluate both credit scores (the lower one often determines rate), both DTI ratios, and require both signatures. If one partner has bad credit or a recent bankruptcy, applying alone with the better-credit partner sometimes yields a better rate than joint applying. Marriage isn't required — unmarried couples can co-own. Have a written agreement covering: ownership split, what happens if one party leaves, how repairs are paid for. A real estate attorney's $500-1500 fee is cheap insurance.

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