How Much Can I Borrow Calculator
Maximum loan from an income, a share of income you accept as an instalment, a rate and a term.
Results
Maximum loan
171,475.14
Monthly payment
770.00
Total interest
105,724.86
What this tool does
Lenders start from the instalment you can sustain and work backwards to the capital. A third of net income is a common ceiling, but the real limit depends on your other commitments, and banks apply their own stress tests above the current rate.
Formula
maximum payment = income × debt-to-income ratio ; principal = PMT × (1 − (1+i)^−N) ÷ i
Variables
| Symbol | Meaning | Unit |
|---|---|---|
inc | Monthly income | — |
er | Share of income for the instalment | % |
r | Annual interest rate | % |
t | Term in years | — |
L | Maximum loan | — |
PMT | Monthly payment | — |
TI | Total interest | — |
Worked example
- Monthly income2200
- Share of income for the instalment35 %
- Annual interest rate3.5 %
- Term in years30
- Maximum loan171,475.14
- Monthly payment770.00
- Total interest105,724.86
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.