Loan Affordability Calculator
About Loan Affordability Calculator
Estimate how much you can borrow safely based on your finances. Enter monthly income and existing debts to approximate a debt‑to‑income ratio, then specify interest rate and loan term to project an affordable loan amount and payment. The tool helps set realistic expectations before you apply, letting you explore scenarios by adjusting rates or terms. It’s perfect for home and auto planning and keeps data local for privacy. Results are illustrative and not lender approvals.
❓ Frequently Asked Questions
How do you estimate affordability?
We approximate a debt‑to‑income (DTI) ratio using your income and existing debts, then solve for a principal that keeps EMI within a safe range.
Is this a lender approval?
No. It’s an educational estimate. Lenders use additional factors like credit score, collateral, and internal policy.
Can I test different rates and terms?
Yes. Adjust interest rate and tenure to see how they affect principal and EMI.
What DTI is considered healthy?
Many lenders prefer total DTI below ~36–40%. Housing EMI alone is often kept under ~28–30% of gross income.
Do prepayments help?
Yes. Higher down payments and prepayments reduce interest burden and risk, improving affordability.
Is my data stored?
No. All inputs remain on your device for privacy.