Loan
Affordability Calculator
Determine the maximum loan amount you can afford based on your monthly budget, interest rate, and desired loan term. See results across multiple terms at once.
Affordability Calculator
Find out the maximum loan amount you can afford based on your monthly budget.
How This Tool Works
How It Works
The affordability calculator reverses the standard loan formula. Instead of calculating the monthly payment from a loan amount, it calculates the maximum loan amount from a given monthly budget.
Formula
factor = 1 + (monthlyRate × months)
maxPrincipal = (monthlyBudget × months - processingFee) / factor
What You Need
- Monthly Budget: The maximum amount you can comfortably pay each month
- Monthly Interest Rate: The flat/add-on rate per month (e.g., 0.99%)
- Term: Number of months (3–36)
Key Insight
With add-on interest, longer terms don't always mean lower total cost. The total interest grows linearly with the number of months, so a shorter term saves you money even if the monthly payment is higher.