Finance
Loan Affordability Calculator
Estimate the maximum loan you can afford from a monthly payment, rate, and term.
The maximum loan figure is the largest loan that the monthly payment can support at the stated rate and term.
Formula
Maximum loan equals payment times one minus one plus monthly rate to the power of negative payments, divided by the monthly rate.
How it works
This reverses the payment formula. It shows the loan size, not the home price — add your down payment for the price, and remember taxes and insurance on top.
Worked example
For example, a monthly payment of $1,500 at 6.5% annual interest over 30 years supports a maximum loan of $237,316.23.
FAQs
Why work backwards?
Most budgets start from a monthly payment, not a loan size.
Does it include tax and insurance?
No — reserve part of your monthly budget for those.
What if rates fall?
The same payment affords a larger loan.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
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