Loan Affordability Calculator
Work backwards from the payment you can comfortably afford to the loan amount it supports. Useful before house or car shopping, so you know your budget going in.
Your details
- Total paid over the term
- $540,000.00
- Total interest
- $302,683.77
Loan vs interest
- Loan amount
- $237,316.2344%
- Interest
- $302,683.7756%
Formula
Max loan = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate and n the number of months. It's the reverse of a standard loan payment calculation.
How it works
The affordable loan is very sensitive to the rate and term: a lower rate or longer term lets the same payment support a bigger loan, though a longer term also raises total interest. Shop with the loan amount, not just the payment, in mind.
Frequently asked questions
How big a loan can I afford?⌄
It depends on the payment you can sustain, the interest rate, and the term. This solves for the loan amount that produces exactly your target monthly payment.
Should I borrow the maximum?⌄
Not necessarily. The max is what the payment supports, but leaving room in your budget for other goals and surprises is wise — borrow what's comfortable, not just what's possible.
How does the term affect it?⌄
A longer term lowers the payment, so the same payment supports a larger loan — but you pay more total interest. Balance affordability against lifetime cost.
Sources & methodology
Present value of the payment stream at the rate and term. Excludes taxes, insurance, and fees.
Embed this calculator⌄
Paste this into your page — it works with no key and computes in the visitor's browser.
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