US Mortgage Calculator: How Much House Can You Afford?

Buying a home is one of the biggest financial decisions you'll ever make. Before you start house hunting, you need to know one number: how much house can you actually afford?

How to Use This Calculator

Our mortgage calculator needs just three inputs:

1. Loan Amount — the home price minus your down payment
2. Interest Rate — check current rates at your bank or on Bankrate
3. Loan Term — 30 years is most common; 15 years means higher payments but less interest paid overall

Current US Mortgage Rates (2026)

As of early 2026, 30-year fixed mortgage rates are hovering around 6.5–7%. This is significantly higher than the 3% rates of 2020–2021, which means monthly payments are substantially higher for the same loan amount.

Example: A $400,000 mortgage at 6.5% for 30 years costs $2,528/month — just in principal and interest. Add property taxes and insurance and your real monthly cost is typically $3,000–$3,500.

The 28% Rule

A common guideline: your monthly housing payment should not exceed 28% of your gross monthly income.

• Earning $8,000/month → maximum housing payment: $2,240
• Earning $12,000/month → maximum housing payment: $3,360

How Interest Rate Affects Your Payment

| Rate | Monthly Payment (on $400k/30yr) | |------|---------------------------------| | 5.5% | $2,271 | | 6.5% | $2,528 | | 7.5% | $2,797 |

A 1% rate difference on a $400,000 loan adds roughly $250/month — or $90,000 over 30 years.

Should You Choose 15 or 30 Years?

• 30-year term: Lower monthly payment, more flexibility, but you pay far more interest
• 15-year term: Higher monthly payment (~40% more), but you pay roughly half the total interest

Use our calculator to compare both scenarios side by side.

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Try the free mortgage calculator to run your own numbers.