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FILE  WBH-MORT-04 SECTION  CALCULATOR DATE  05/14/2026

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What can you actually afford vs what the bank approves?

Banks approve you for more than you can safely afford. See your real number based on income, debts, and actual monthly costs.

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Your Finances

Car, student loans, credit cards

Comfort Level

28% - Conservative

Most financial advisors recommend staying under 28%. Banks will approve up to 43%.

You can afford

$275,549

at 28% DTI (Conservative)

Debt-to-Income Gauge

ConservativeModerateStretched
0%25%28%36%43%50%

Your actual DTI: 28% (housing: 21.8%)

Conservative (25%)

$242,387

Comfortable buffer

Recommended (28%)

$275,549

Standard guideline

Bank Maximum (43%)

$441,355

Highest approval

Monthly Payment Breakdown

Total Monthly$1,740
Principal & Interest
$1,362
Property Tax
$253
Insurance
$125
How Much House Can I Afford?
whatbankshide.com
You can afford
$275,549
Monthly payment$1,740/mo
DTI ratio28%
Comfort levelConservative

Affordability by salary

Pre-tailored breakdowns for 36 salary brackets, $40k to $500k. Each page shows the bank-max vs comfortable vs conservative number for that income, with down-payment scenarios.

Working-income — DTI is the binding constraint. Banks approve much more than is comfortable.

$40k $50k $60k $70k

Middle-income — The widest gap between bank-max and the comfortable number — the trap most buyers fall into.

$75k $80k $85k $90k $95k $100k $105k $110k $115k $120k $125k $130k

Upper-middle — Approval stops mattering; the question becomes how much of your income to lock in housing.

$135k $140k $145k $150k $160k $170k $175k $180k $190k $200k

High-income — DTI is irrelevant. The real constraint is opportunity cost on every locked dollar.

$220k $240k $250k $275k $300k $325k $350k

Top earners — Affordability is a wealth-allocation preference, not a constraint.

$400k $450k $500k
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How It Works

We calculate the maximum home price where your total monthly obligations (mortgage + taxes + insurance + HOA + existing debts) stay within your chosen DTI percentage of gross income.

The formula: Available for housing = (Income × Target DTI) − Existing debts. Then we solve for the home price where PITI equals the available housing budget, accounting for property tax rate and insurance as percentages of the home value.

The comfort slider lets you see the range from conservative (25% DTI, plenty of breathing room) to the bank's maximum (43% DTI, approved but tight). We show all three benchmarks so you can make an informed decision.

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Frequently asked

01 What is DTI (debt-to-income ratio)?
DTI is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to determine how much they'll lend you. There are two types: front-end DTI (housing costs only) and back-end DTI (all debts including housing). Banks typically approve up to 43% back-end DTI, but financial advisors recommend staying under 28-36%. Read our complete DTI guide at /guides/debt-to-income-ratio-mortgage.
02 Why does your calculator say I can afford less than my bank?
Banks determine the maximum they'll lend you - not what's comfortable. Their 43% DTI limit leaves little room for savings, emergencies, or lifestyle. Our calculator lets you choose your comfort level, with most financial advisors recommending 28% DTI or less.
03 What's included in the monthly payment?
PITI: Principal, Interest, Taxes, and Insurance. If you have an HOA, that's added too. Many first-time buyers forget about property taxes and insurance, which can add $500-1,000+ to your monthly cost beyond the mortgage payment.
04 How does my down payment affect affordability?
A larger down payment means a smaller loan, which means lower monthly payments. This lets you afford a more expensive home within the same DTI. It also eliminates PMI (typically required below 20% down), further reducing your monthly cost.
05 Should I use my gross or net income?
This calculator uses gross (pre-tax) income, which is the standard for DTI calculations. However, your actual take-home pay is lower. That's why we recommend a conservative DTI - the math works on gross income, but you pay bills with net income.
06 What is the 28/36 rule?
The 28/36 rule says spend no more than 28% of gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on all debts combined. Most banks will approve you well beyond this - that's how people end up house-poor. This calculator lets you see the difference.
07 How much should I have saved before buying a house?
Beyond the down payment (3.5-20% of home price), you should have 2-5% for closing costs, 1-3% for moving and initial repairs, plus 3-6 months of expenses as an emergency fund. Total: roughly 10-30% of the home's price in savings before buying.
08 What DTI ratio do lenders require?
Most conventional lenders cap at 43-45% back-end DTI (all debts including housing). FHA allows up to 50% in some cases. But qualifying at these levels means nearly half your gross income goes to debt - far above what financial advisors recommend (28-36%).