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Loan Affordability Calculator

Calculate how much loan you can afford

Your Financial Situation

$

Your total income before taxes

$

Credit cards, car loans, student loans, etc.

Loan Details

%

30 years 0 months

$

Cash you plan to put down

Target Debt-to-Income Ratio

36%
Conservative (20%)Max (43%)

Recommended DTI: Most lenders prefer a total DTI below 43.00% for mortgage / home loan.

Affordability Analysis

Enter your details and click Calculate

Find out how much you can afford to borrow

Understanding Loan Affordability

Debt-to-Income (DTI) Ratio

DTI measures what percentage of your gross monthly income goes toward debt payments. Lenders use this to assess your ability to manage payments.

Under 28%Excellent
28% - 36%Good
36% - 43%Acceptable
Over 43%High Risk

Max DTI by Loan Type

Mortgage / Home Loan43.00%
Auto Loan36.00%
Personal Loan36.00%
Student Loan40.00%
Other Factors Lenders Consider:
  • Credit score and credit history
  • Employment stability and income documentation
  • Assets and savings (reserves)
  • Loan-to-value ratio (for mortgages)
  • Type of income (salary vs. self-employment)

Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.

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