Loan Affordability Calculator
Estimate a reasonable monthly payment using your income, debts, and target debt-to-income ratio.
Shopping for a car already? Jump to our Auto Loan Calculator.
Max monthly payment
$1,140.00
- Estimated loan amount
- $58,263.89
- Estimated purchase price
- $62,263.89
Uses your target debt-to-income ratio to estimate a comfortable payment and matching loan amount.
How term length changes your buying power
Longer repayment periods generally increase how much you can finance while keeping the same DTI-based payment.
Wondering how this fits into a full purchase? Our How Much Car Can I Afford? guide walks through real-world examples.
How to use the Affordability Calculator
Use your household income, debts, and savings rate to understand the ceiling on a purchase such as a home, car, or major renovation.
- Input gross monthly income along with recurring debts to calculate a realistic debt-to-income ratio.
- Set the desired down payment or cash on hand to see how far your savings stretch.
- Choose an interest rate and term that mirrors the financing product you plan to apply for.
- Review the suggested maximum purchase price and adjust until it fits comfortably inside your budget.
Affordability Calculator key terms
Knowing how each field influences the results keeps the math grounded in reality.
Debt-to-income ratio
Measures monthly obligations divided by gross income. Lenders use it to gauge how much additional debt you can take on.
Front-end ratio
The percentage of income that would go toward the new payment alone, excluding other debts. Helpful for comparing different loan types.
Cash reserves
Funds left over after the purchase. Maintaining a buffer keeps you from draining savings for emergencies.
Affordability Calculator planning ideas
Try running a few “what if” scenarios to translate the numbers into real-world decisions.
Stretch goal versus comfort zone
Run the calculator with aggressive versus conservative debt ratios so you can pick a target that balances ambition with sleep-at-night security.
Adjust for interest rate swings
Model a few rate environments to see how rising or falling borrowing costs impact your buying power.
Plan for future income changes
If you expect a raise or upcoming leave of absence, adjust the income input to understand how timing affects affordability.
Frequently asked questions
Does this tool replace lender underwriting?
No. It provides a planning range based on the numbers you supply. Lenders still verify income, credit history, and loan program rules before approving financing.
What is a healthy affordability buffer?
Many planners aim to keep the projected payment below 28% of gross income and maintain at least three months of expenses in cash. Use your own comfort level when reviewing results.