Loan Affordability Calculator
Calculate the maximum loan amount you can afford based on your desired monthly payment, interest rate, and term.
How to use this tool
- Enter max monthly payment, annual interest rate and loan term in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your maximum loan amount and the full breakdown beneath it.
Flip the loan calculation: enter what you can afford to pay per month and find out how much you can borrow.
Frequently asked questions
- How is maximum loan calculated?
- This uses the present value of an annuity formula: PV = PMT × [1 - (1+r)^-n] / r. It tells you the loan amount whose payments exactly match your target monthly payment.
- Should I borrow the maximum I qualify for?
- Not necessarily. Borrowing the maximum leaves no buffer for unexpected expenses. Consider borrowing 80-90% of the maximum to maintain financial breathing room.