Is 36% DTI conservative?

Yes — the federal Qualified Mortgage rule allows up to 43%, and FHA loans up to 50%. 36% is the historical "safe" target; 28% is even safer.

Should I use my max approval as my budget?

Almost never. Lenders approve to their tolerance, not yours. Most homeowners are happiest spending 20–30% below their max approval, leaving room for life.

Home Affordability Calculator

Maximum home price you can afford, based on income, debts, and down payment.

Result

Max home price

$444,321.95

Loan amount$384,321.95
Down payment %13.5%
Estimated PITI$3,000.00
↳ Principal & interest$2,492.70
↳ Property tax$407.30
↳ Insurance (est.)$100.00
Max housing budget36% of income minus current debts$3,000.00

How to use this calculator

Enter your gross (pre-tax) annual income and any monthly debts you already pay.
Type your down payment and the current mortgage rate.
Adjust the DTI cap if you want a more conservative answer (try 28%).
See the max price plus the resulting PITI breakdown.

About this tool

How much house you can afford comes down to one ratio: your debt-to-income (DTI). Lenders usually want all your monthly debt — including the new mortgage — to stay under 36% of your gross monthly income, with hard caps around 43–50%. This calculator works backwards: given your income, existing debts, down payment, and the current rate, what's the largest home price that keeps you under that ceiling? It includes a realistic PITI estimate (taxes, insurance) instead of just the bare loan, so the answer matches what a lender will actually approve.

Frequently asked

That's how lenders calculate it. They use your gross income because they want consistency across borrowers regardless of state tax or 401(k) contributions.