Enter your income, current loan payments, the maximum debt ratio, the rate and the term.
Formula
Max payment = income × max ratio − existing payments; capital = payment × (1 − (1 + i)^−n) / i
Worked example
4,000 of income at 35%, 3.5% over 25 years: up to about 279,650.
Frequently asked questions
Is this what the bank will lend?
It is an estimate; lenders also look at savings, job stability and the remaining income.
Should I borrow the maximum?
Leave room for unexpected costs.
Does the term matter?
Yes, a longer term raises capacity but also the total cost.
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Results are estimates for information only. Check important figures with a professional.