Loan Affordability Calculator
Don't guess what you can buy. Start with your budget and work backward to find the exact loan amount you can afford for a home, car, or personal expenses.
You Can Afford A Home Price Of
Budget First, Borrow Second
Most people shop for a house or car first, fall in love with it, and *then* check if they can afford the payments. This is the recipe for financial stress. The smart approach is to determine your "Max Monthly Payment" based on your income and lifestyle, and then us our Loan Affordability Calculator to reverse-engineer the maximum purchase price.
How Buying Power Works
Your borrowing power is determined by three levers:
- Budget: The monthly cash you have available.
- Interest Rate: The cost of the money. Higher rates eat up your budget faster.
- Term: The length of the loan. Longer terms lower the monthly payment but increase total interest.
The "Safe Limit" Strategy
Just because a bank approves you for $500,000 doesn't mean you should borrow it.
Step 1: Calculate your monthly take-home pay.
Step 2: Subtract all living expenses (food, utilities, savings).
Step 3: The remaining number is your TRUE max budget.
Step 4: Enter that number into this calculator to find your safe purchase price.
Car Shopping
Have $400/month? At 6% interest for 60 months, you can afford a ~$20,000 car. Knowing this prevents you from looking at $40,000 trucks.
Home Buying
Rates jumped from 3% to 7%. Your budget didn't change, but your buying power dropped by $150k. Use this tool to adjust expectations.
Personal Loans
Need $15,000 for a wedding? Check if the monthly payments fit your budget before you sign the paperwork.
Frequently Asked Questions
Should I stretch my budget to the max?
No. Always leave "wiggle room" for maintenance, insurance increases, and life emergencies. Being "house poor" or "car poor" is stressful.
How do down payments factor in?
This calculator tells you the *Loan Amount*. Your total Purchase Price = Loan Amount + Down Payment. If you can borrow $200k and have $50k cash, you can buy a $250k house.
Why does the term matter?
Extending the term increases affordability (monthly) but costs more (total). A 72-month car loan lets you buy a more expensive car than a 48-month loan, but you'll pay much more in interest.
Estimate Only
This tool calculates Principal and Interest only. Actual affordability depends on taxes, insurance, HOA fees, and creditworthiness.
Data Privacy
We do not store your financial data. This calculator runs entirely in your browser.