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Loan Affordability Calculator

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INPUT

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OUTPUT

Client Side

Enter your income and loan details to see affordability results.

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Guide

Loan Affordability Calculator

Find out exactly how much you can afford to borrow based on your income and existing debts. Enter your monthly gross income, current debt payments, desired interest rate, and loan term to get your maximum affordable loan amount, monthly payment, and debt-to-income ratios. Includes loan type presets for mortgages, personal loans, and auto loans with industry-standard DTI thresholds.

How to Use

Enter your monthly gross income and any existing monthly debt payments (credit cards, student loans, car payments). Set the interest rate and loan term, then choose a loan type preset or customize the DTI thresholds. The calculator instantly shows your maximum affordable loan amount, monthly payment breakdown, and color-coded DTI ratio indicators. Check the sensitivity table to see how different interest rates affect your borrowing power.

Features

DTI-Based Calculation – Uses front-end (housing-only) and back-end (all debts) debt-to-income ratios to determine your maximum affordable loan
Loan Type Presets – Mortgage (28/36 rule), Personal Loan (flexible DTI), Auto Loan, and Custom with adjustable thresholds
Color-Coded DTI Bars – Visual progress indicators that change from green to yellow to red as your DTI ratio increases
Sensitivity Table – See how your maximum loan amount changes across different interest rates (±2% in 0.25% steps)
Payment Breakdown – Principal vs interest split showing total cost over the loan term
Adjustable DTI Sliders – Fine-tune front-end and back-end DTI thresholds to match your lender requirements
Real-Time Calculation – All results update instantly as you change any input

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 FAQ

What is the 28/36 rule for mortgages?

The 28/36 rule is an industry guideline that says your monthly housing costs should not exceed 28% of your gross monthly income (front-end DTI), and your total monthly debt payments including housing should not exceed 36% of your gross income (back-end DTI). For example, if you earn $6,000 per month, your housing payment should stay under $1,680 and your total debts under $2,160. Many lenders use this as a baseline, though some allow higher ratios for borrowers with strong credit.
What is the difference between front-end and back-end DTI?

Front-end DTI (also called housing ratio) measures only your housing costs against your gross income. It includes your mortgage payment, property taxes, insurance, and HOA fees. Back-end DTI (also called total debt ratio) includes all monthly debt obligations: housing costs plus car payments, student loans, credit card minimums, and any other recurring debts. Lenders look at both ratios when evaluating your loan application, with the back-end DTI typically being the more important factor.
How does the interest rate affect how much I can borrow?

Interest rate has a significant impact on your maximum affordable loan. A higher rate means more of your monthly payment goes toward interest, leaving less for principal, which reduces the total amount you can borrow. For example, at 6% on a 30-year mortgage with a $1,500 monthly payment, you could borrow about $250,000. At 8%, that same payment only supports about $204,000 in borrowing. The sensitivity table in this calculator shows exactly how rate changes affect your specific situation.
Should I use gross or net income for DTI calculations?

DTI calculations use gross monthly income, which is your total income before taxes and deductions. This is the standard used by virtually all lenders. Your gross income is higher than your take-home pay, so your DTI ratio will appear lower than if calculated with net income. While lenders use gross income for qualification, it is wise to also consider your actual take-home pay when deciding how much debt you are comfortable carrying.