Go beyond the bank's pre-approval number — find a payment that's actually comfortable for your real budget and goals.
This calculator uses the classic 28/36 rule that most lenders apply: your total housing payment (principal, interest, taxes, insurance — known as PITI) shouldn't exceed 28% of your gross monthly income, and your total debt payments (housing plus all other debt) shouldn't exceed 36%.
The "comfortable home price" figure works backward from these ratios to find the maximum home price where your monthly PITI stays within 28% of income — which is often lower than what a bank will actually approve you for.
Why "approved for" and "comfortable with" are different numbers: Banks often approve buyers up to a 43–50% back-end ratio, especially with strong credit. But that leaves very little room for savings, emergencies, or lifestyle spending. Many financial planners recommend staying closer to 25% front-end for genuine comfort, especially if income is variable.
Use the "approved for" number from your lender as a ceiling, not a target. The "comfortable" number this calculator produces is generally a better target for actually shopping — it leaves room for retirement savings, an emergency fund, and the unexpected costs that come with homeownership.