Find out how large a loan you can afford based on the monthly payment that fits your budget.
Enter your budget
$
%
years
Your results
$0
Maximum Loan Amount
$0
Total Interest at That Amount
$0
Total Cost
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Payoff Date
Remaining balance
How the Loan Affordability Calculator works
Instead of starting with a loan amount, this calculator starts with what you already know you
can comfortably pay each month. It then works the standard loan payment formula backwards to
find the largest principal that payment can support at your interest rate and term.
This is the mirror image of the usual loan payment calculation — rather than solving for the
payment, it solves for the principal.
Principal = Payment × (1 − (1 + r)^−n) / r
Once the maximum principal is found, the calculator runs the full amortization schedule at that
amount so you can also see the total interest and total cost you'd take on at your budgeted
payment.
Frequently asked questions
A common guideline is to keep any single loan payment under about 10-15% of your gross monthly income, and all debt payments combined under roughly 36%. Your comfortable limit depends on your other expenses and financial goals.
No. This calculator only looks at the monthly budget you enter for this specific loan. If you have other debts, factor in their payments separately when deciding how much you can truly afford to borrow.
A shorter term reduces the loan amount you can afford at the same monthly payment, since you're paying it off faster, but it also means less total interest. Adjust the loan term field above and recalculate to compare.
Not necessarily. The maximum amount shown here assumes your full budget goes to this one payment with no cushion. It's often wiser to borrow less than the maximum, leaving room for other expenses, savings, and unexpected costs.