Affordability Calculator
Find out how much you can afford to borrow
How Much Can You Afford to Borrow?
This calculator helps you determine a comfortable loan amount based on your income, expenses, and desired debt-to-income ratio. Financial experts generally recommend keeping your total debt payments below 36% of gross income, with no more than 28% going to any single loan payment.
Your Finances
Recommended: 28% or less
Loan Terms
You can afford to borrow up to
$83,841
at 7.50% over 60 months
Max Monthly Payment
$1,680
Total Interest
$16,959
Debt-to-Income
28.00%
Monthly Budget Breakdown
Affordability FAQ
What is a good debt-to-income ratio?+
Most lenders prefer a DTI below 36%, with no more than 28% of gross income going toward housing costs. A lower DTI indicates better financial health and increases your chances of loan approval.
How do I calculate how much I can borrow?+
Start with your monthly income, subtract your fixed expenses, and determine what percentage of income you're comfortable dedicating to loan payments. Then use the loan payment formula to back-calculate the maximum loan amount at your expected interest rate and term.
Should I borrow the maximum I can afford?+
Generally, no. It's wise to leave a financial cushion for unexpected expenses, savings, and lifestyle flexibility. Many financial advisors recommend borrowing 10-20% less than your calculated maximum.