Loan Affordability Calculator
Calculate how much you can afford to borrow based on your income, expenses, and loan terms. Determine monthly payments, total interest, and loan eligibility.
Step 1: Income & Expenses
Understanding Loan Affordability
Lenders typically recommend that your total monthly debt payments (including the new loan) should not exceed 35-45% of your monthly income after tax.
Step 2: Loan Terms
About Loan Terms
Longer loan terms result in lower monthly payments but higher total interest costs. Shorter terms have higher monthly payments but less interest overall.
Loan Affordability Results
Maximum Affordable Loan Amount
Loan Type Comparison
| Loan Type | Typical Interest Rate | Maximum Loan Amount | Monthly Payment |
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Payment Breakdown
Loan Affordability Formula
Maximum Monthly Payment = (Monthly Income × Debt-to-Income Ratio) – Existing Debt Payments
To calculate your maximum affordable loan amount: Determine your maximum monthly payment based on your income and existing debts, then calculate the loan amount that results in that payment.
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