Work backwards from what you can pay each month. Enter an affordable payment, or your income and a debt-to-income limit, plus the rate and term to see the largest loan that payment supports and the interest it would cost.
Last updated:
Start from
$
$
Before tax, all borrowers combined.
%
Total monthly debt ÷ gross monthly income. 36% is a common limit; mortgages may allow 43% to 50%.
$
Car, student, card minimums and other loans.
% / yr
years
$
Adds to the loan to show the maximum purchase price.
Enter your values to see the result.
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How to use the How Much Can I Borrow Calculator
Choose your starting point: a payment you know you can afford, or your income and a debt-to-income limit.
Enter the payment, or your gross annual income, the DTI percentage and current monthly debts.
Set the interest rate and loan term you expect to get.
Add a down payment if you are buying something, to see the maximum price.
Read the maximum loan and use the rate and term table to see how much changing either one helps.
How the maximum loan amount is calculated
A lender's maximum loan for a fixed payment is the present value of that stream of monthly payments:
Loan = P × (1 − (1 + r)−n) ÷ r
P = monthly payment you can afford
r = monthly interest rate (APR ÷ 12 ÷ 100)
n = number of monthly payments (years × 12)
If you start from income, the payment comes from the debt-to-income (DTI) limit: P = gross monthly income × DTI% − existing monthly debt payments. Example: $90,000 a year is $7,500 a month; 36% of that is $2,700, and after $400 of existing debts $2,300 is left for the new loan. At 7% for 30 years that supports a loan of about $345,700.
Loan amount per $1,000 of monthly payment
Multiply by your payment in thousands (a $1,500 payment is 1.5 ×).
Rate
5 years
10 years
15 years
20 years
30 years
4%
$54,299
$98,770
$135,192
$165,022
$209,461
5%
$52,991
$94,281
$126,455
$151,525
$186,282
6%
$51,726
$90,073
$118,504
$139,581
$166,792
7%
$50,502
$86,126
$111,256
$128,983
$150,308
8%
$49,318
$82,421
$104,641
$119,554
$136,283
10%
$47,065
$75,671
$93,057
$103,625
$113,951
12%
$44,955
$69,701
$83,322
$90,819
$97,218
What lenders look at besides the payment
DTI ratio. Many lenders prefer total debts at or below 36% of gross income; qualified mortgages are often capped around 43%, and some programs go higher with strong credit.
Housing costs. For a mortgage, property tax, insurance, mortgage insurance and HOA dues count toward the payment, so the loan itself must be smaller than the full housing budget.
Credit score, down payment and loan-to-value. These change the rate you are offered, and a higher rate lowers the amount you can borrow for the same payment.
Your own budget. The maximum a lender approves is not always comfortable; leave room for savings and emergencies.
Frequently asked questions
How do I calculate how much I can borrow?
Use the present value of an annuity: Loan = P × (1 − (1 + r)^−n) ÷ r, where P is the monthly payment, r is the APR divided by 12, and n is the number of months. For example, $1,500 a month at 7% for 30 years supports about $225,500.
What is a debt-to-income ratio?
DTI is your total monthly debt payments divided by your gross (pre-tax) monthly income. Lenders use it to judge whether you can handle a new payment. A DTI of 36% or less is widely considered healthy, and many mortgage programs allow up to about 43% to 50%.
Why does a longer term let me borrow more?
Spreading the same payment over more months means more payments pay back the principal, so the present value is larger. The trade-off is much more total interest, which the calculator shows.
How much does the interest rate change my borrowing power?
A lot. With a $1,500 monthly payment over 30 years, you can borrow about $279,400 at 5% but only about $204,400 at 8%. The table below the results shows this for your own payment.
Does this include property tax and insurance for a mortgage?
No. It finds the loan the payment supports for principal and interest only. For a home, subtract estimated monthly property tax, insurance, mortgage insurance and HOA dues from your housing budget first, or use a mortgage affordability calculator.
Will a lender approve this amount?
Not necessarily. Approval also depends on credit history, income stability, down payment, the property or vehicle value and the lender's own rules. Treat the result as an estimate to plan with.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.