Calculate your maximum loan amount and monthly payments based on your income and debts to help budget for a new home or car.
It is generally recommended that monthly repayments do not exceed 50% of household monthly income to ensure quality of life and cope with emergencies.
FVIFA Calculator
Accurately calculate the Future Value Interest Factor of an Annuity (FVIFA) to evaluate future returns. Supports custom interest rates, periods, and decimal places.
CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of your investments. Enter the initial value, final value, and number of years to get an accurate annualized return assessment.
Bond YTM Calculator
Accurately calculate the annualized yield of a bond held to maturity to assist with investment decisions and bond valuation analysis.
When you are unsure how much you can afford to borrow, this tool quickly calculates your maximum loan amount and monthly payments based on the standard amortization formula and your Debt-to-Income (DTI) ratio. DTI is a key metric used by lenders to evaluate repayment ability. The formula is: Total Monthly Debt Payments ÷ Gross Monthly Income × 100%. The tool caps the DTI at 50% to ensure the results align with mainstream bank approval standards.
Q: Why is my calculated result lower than what a bank actually approved?
This tool uses a conservative 50% DTI standard, whereas some lenders may accept up to 60%. Additionally, your credit score, employment stability, and other factors will influence the final approval.
Q: Does the result include taxes and insurance?
No. This tool only calculates principal and interest. Your actual monthly payment will also need to account for property taxes, HOA fees, and mortgage insurance (PMI).
Results are generated instantly based on your current inputs and no historical data is saved. Interest rate fluctuations, policy changes, or shifts in your credit profile will affect actual loan approvals. We recommend re-evaluating your affordability quarterly.
Typical Scenario: With a monthly income of 20,000, an existing auto loan payment of 3,000, and applying for a 30-year mortgage (at a 4.2% interest rate), the calculator estimates a maximum loan amount of 1.36 million with a monthly payment of approximately 6,650 (DTI = 48.25%). We recommend keeping a 10% income buffer and limiting your actual loan application to around 1.2 million.
