How Much House Can I Really Afford? – The 2026 Mortgage Calculator Guide (Beyond the 28% Rule)

Most affordability advice still pushes the 28% rule:

“Your housing costs shouldn’t exceed 28% of your gross income.”

In 2026, that rule is dangerously incomplete.

Modern households deal with:

• Student loan repayments
• Childcare costs
• Work-from-home utility expenses
• Higher maintenance and insurance
• Variable income and side hustles

If you rely only on outdated rules, you risk becoming house-poor.

This guide shows how to use a mortgage calculator the right way to answer:

• “How much mortgage can I afford?”
• “What mortgage can I afford on my salary?”
• “How much house can I really handle month to month?”

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Why the 28% Rule No Longer Works

The 28% rule assumes:

• Stable income
• No major debt
• Minimal childcare or education costs
• Low utility expenses

That’s not reality in 2026.

Example

• Gross monthly income: $6,500
• 28% housing limit: $1,820

Sounds reasonable — until you add:

• Student loan: $450
• Childcare: $900
• Health insurance: $350

Suddenly, that “affordable” mortgage becomes a cash-flow problem.

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What a Mortgage Calculator Should Actually Measure

A modern “how much mortgage can I afford” calculator must factor in:

Fixed Obligations

• Student loans
• Auto loans
• Credit card minimums

Lifestyle Costs (Often Ignored)

• Childcare or education expenses
• Work-from-home electricity & internet
• Transportation and fuel
• Insurance (home, health, auto)

Ownership Costs (Not Just the Mortgage)

• Property taxes
• Home insurance
• Maintenance (1–2% of home value annually)

If your calculator ignores these, it’s lying to you.

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Step 1: Start With Net Income (Not Gross)

Most calculators ask for gross income.
That’s a mistake.

You pay your mortgage with net income.

Example

• Gross monthly income: $7,500
• Taxes & deductions: $1,900
• Net income: $5,600

This is the number that matters.

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Step 2: Subtract Non-Negotiable Monthly Costs

Before touching a mortgage calculator, list your fixed expenses:

Expense	Monthly Cost (USD)
Student loans	$420
Childcare	$950
Car payment	$380
Insurance (non-home)	$310
Utilities & internet (WFH)	$260
Total fixed costs	$2,320

Remaining income for housing + savings:

$5,600 − $2,320 = $3,280

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Step 3: Apply a Reality-Based Housing Limit

Instead of the 28% rule, use this 2026-safe range:

• 25–30% of net income if you have dependents or high debt
• 30–35% of net income if debt is low and income is stable

Using 30% of net income:

$5,600 × 30% = $1,680

That’s your safe monthly housing budget, not your maximum.

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Step 4: Use the Mortgage Calculator Correctly

Now input into a what mortgage can I afford calculator:

• Monthly housing budget: $1,680
• Interest rate: 6.8%
• Loan term: 30 years
• Property tax + insurance: $320/month

Result:

• Max loan amount ≈ $245,000
• Estimated home price (10% down): $270,000

Anything above this pushes you into stress territory.

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The Hidden Costs Most Buyers Ignore

1. Maintenance Reality

• Even new homes need repairs
• Budget 1–2% of home value per year

$300,000 home → $3,000–$6,000 annually

2. WFH Utility Creep

Remote work means:

• Higher electricity
• Faster internet plans
• Equipment replacement

This adds real monthly cost your mortgage calculator must account for.

3. Rate Shock Risk

Floating-rate mortgages can change. Always test:

• +1% rate scenario
• +2% worst-case scenario

If you can’t afford it then, you can’t afford it now.

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What “Affordable” Really Means in 2026

A house is affordable if:

• You can pay the mortgage
• You can still save
• You can handle emergencies
• You don’t rely on bonuses or overtime

If your calculator result leaves you with:

• $0 buffer
• No savings
• Constant stress

That house is not affordable, even if the bank approves you.

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Final Thoughts

A mortgage calculator should answer one question honestly:

“Can I live comfortably after buying this house?”

Forget outdated rules. Use net income, real expenses, and stress-tested numbers.

That’s how you buy a home that supports your life — not controls it.

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Disclaimer: This content is for educational purposes only. Mortgage rates, taxes, and affordability vary by location and lender. Always consult a qualified financial professional before making decisions.