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Loan Affordability Calculator

Find out how much you can realistically borrow. Enter your income, existing debts, a debt-to-income limit, rate and term, then press Calculate to see your affordable payment and loan amount.

Written by TopicDrill Editorial Team·Updated June 2026

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Your budget

Tell us your income and debts, then press Calculate.

$
$

You could borrow up to

$75,357

Affordable payment / mo$1,510
Max total debt / mo$2,160
Total interest$15,243
Total of payments$90,600

How much you can borrow at each rate

Loan amount
$0$20.8k$41.5k$62.3k$83.0k3.5%4.5%5.5%6.5%7.5%8.5%9.5%10.5%11.5%

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How the loan affordability calculator works

Rather than asking how much a loan costs, this tool asks how much loan your budget can carry. It multiplies your gross monthly income by the debt-to-income ceiling to find the total your lender will allow toward debt, then subtracts the payments you already make. What is left is the room available for a new loan payment.

That affordable payment is then turned into a principal using the present value of an annuity, which is the same math a lender uses in reverse. Feed in a different rate or term and the loan amount moves, since both change how much principal a fixed payment can support.

A worked example

Say you earn 6,000 dollars a month, already pay 650 dollars toward other debts, and a lender uses a 36 percent DTI cap. That allows 2,160 dollars of total debt, leaving 1,510 dollars for a new loan. At 7.5 percent over five years, that payment supports a loan of roughly 75,000 dollars before interest is added on top.

Things to keep in mind

Lenders also weigh credit history, down payment, taxes and insurance, so an approval may land above or below this estimate. The maximum is a ceiling, not a goal, and borrowing below it protects your budget. For a primer on the ratio behind the math, see the CFPB explainer on debt-to-income ratio. Once you settle on an amount, our loan calculator will show the full payment schedule.

Frequently asked questions

How does this calculator decide what I can afford?

It works backward from your budget. Your gross monthly income times the debt-to-income ceiling gives the most a lender will let go to all debt. Subtracting your existing debt payments leaves the room for a new loan, and that affordable payment is converted into the loan amount it can support at your rate and term.

What is debt-to-income ratio and what is a safe number?

Debt-to-income, or DTI, is the share of your gross income that goes to debt payments each month. Many lenders cap total DTI around 36 to 43 percent. A lower ceiling leaves more breathing room in your budget, while a higher one stretches you closer to the limit.

Does a longer term let me borrow more?

Yes. Spreading the same affordable payment over more months supports a larger principal, so a longer term raises the loan amount. The trade-off is more total interest over the life of the loan, since you carry the balance for longer.

Should I borrow the full amount the calculator shows?

Not necessarily. The figure is a ceiling based on a lender's ratio, not a comfort level. It ignores savings goals, irregular expenses and emergencies, so many people choose to borrow well below the maximum to keep their monthly budget flexible.

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