Salary to Mortgage: Our 2026 Calculator Reveals Exactly What You Qualify For (Debt-to-Income Decoded)

Many people ask:

• How much mortgage do I qualify for?
• How much can I borrow based on my salary?

Banks already have an answer — and it’s based on Debt-to-Income (DTI).

This guide explains how lenders calculate DTI in 2026, using simple words, real numbers, and a calculator mindset — no confusing finance talk.

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What Does “Mortgage Qualification” Really Mean?

When a lender says you qualify for a mortgage, they mean:

“Based on your income and debts, this is the maximum monthly payment you can handle.”

It does not mean:

• This is what you should borrow
• This is what feels comfortable
• This is what fits your lifestyle

Qualification is a risk check, not life planning.

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What Is Debt-to-Income (DTI)?

DTI shows how much of your income goes toward debt every month.

Simple Formula

DTI = (Total Monthly Debt ÷ Gross Monthly Income) × 100

Lenders use this number to decide:

• If you qualify
• How much you can borrow
• What interest rate you get

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DTI Limits Lenders Use in 2026

Most lenders follow these ranges:

DTI Range	Meaning
Under 36%	Strong approval chance
36% – 43%	Still acceptable
43% – 50%	Risky, fewer options
Above 50%	Usually rejected

Some lenders allow higher DTI, but terms get worse.

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Step 1: Add Up Your Monthly Income

Use gross income (before tax).

Include:

• Salary
• Business income
• Side income (if stable)

Example:

• Monthly salary: $6,000
• Side income: $500
• Total income: $6,500

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Step 2: List All Monthly Debts

Include every fixed debt:

Debt	Monthly Amount
Car loan	$420
Student loan	$380
Credit cards	$150
Total debt	$950

Do not include:

• Groceries
• Rent
• Utilities

Banks don’t count those.

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Step 3: Add the Estimated Mortgage Payment

Your future housing payment includes:

• Mortgage
• Property tax
• Home insurance

Example estimate:

• Mortgage + tax + insurance = $1,700

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Step 4: Calculate Your DTI

Total monthly debt:

$950 + $1,700 = $2,650

DTI:

$2,650 ÷ $6,500 = 40.8%

✅ This usually qualifies, but not at the best rate.

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What a “How Much Mortgage Do I Qualify For” Calculator Does

A good calculator:

1. Takes your income
2. Adds your debts
3. Applies lender DTI limits
4. Converts that into a loan amount

Example Result

• Max DTI allowed: 43%
• Max housing payment: ~$1,850
• Estimated mortgage you qualify for: $275,000

This is pre-qualification, not approval.

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Why Down Payment Changes Everything

Higher down payment:

• Lowers monthly payment
• Improves approval chance
• Reduces interest cost

Down Payment	Result
3%	Higher payment, stricter DTI
10%	Balanced
20%	Easier approval, better rate

A calculator should let users change this easily.

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Why Banks Approve More Than You Should Borrow

Banks focus on:

• Income stability
• Debt ratios

They don’t care about:

• Your lifestyle
• Emergency savings
• Childcare or WFH costs

That’s why many people feel stretched after buying.

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Safe Rule for Borrowers (Reality Check)

Even if the bank approves you:

• Stay 5–8% below the max
• Leave room for savings
• Plan for rate increases

Approval is the ceiling.
Comfort is lower.

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Final Thoughts

A mortgage calculator doesn’t decide your future — you do.

Use it to:

• Understand lender limits
• See how salary affects borrowing
• Test debt reduction impact
• Plan smarter before applying

Knowing what you qualify for gives you control, not pressure.

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Disclaimer: This content is for education only. Mortgage rules, rates, and DTI limits vary by lender and location. Always confirm with a licensed mortgage professional.