Example 1 — Typical household
- Income: 8,000, obligations: 1,500
- DTI: 40%
- Rate 7%, term 25 years
Max payment 1,700
Max amount 240,527.74
At 40% DTI, existing obligations eat into the limit but a solid new payment remains.
Borrowing capacity calculator
Get an orientational maximum payment and loan amount for a new loan, based on your income, other obligations, and a DTI limit.
Enter your monthly net income, other monthly obligations (loans, alimony, rent), and a maximum DTI (default 40%, editable). The calculator works out how much you can put toward a new payment and the loan amount it supports at an assumed rate and term. This is only an orientational estimate — lenders apply scoring, interest-rate stress buffers, and your full credit history. Amounts follow the currency in the header.
Result
Enter data and click Calculate.
How results are calculated
Available payment = max(0, income × max DTI/100 − obligations).
Max loan amount = payment × [(1+r)^n − 1] ÷ [r × (1+r)^n], where r = rate ÷ 12, n = years × 12 (inverse amortization formula).
How to use the calculator
- Enter your monthly net income in the header currency.
- Enter other monthly obligations — loan payments, alimony, rent.
- Set the max DTI (default 40%, editable).
- Enter the assumed annual rate and term in years.
- Check the max payment and loan amount on the income-split diagram.
Usage examples
Example 2 — Lower income, few obligations
- Income: 5,000, obligations: 200
- DTI: 35%
- Rate 7.5%, term 30 years
Max payment 1,550
Max amount 221,677.32
Low existing obligations leave nearly the whole DTI limit for a new loan.
Example 3 — Higher income, higher DTI
- Income: 12,000, obligations: 3,500
- DTI: 45%
- Rate 6.5%, term 20 years
Max payment 1,900
Max amount 254,837.51
A higher DTI limit and income give more capacity despite significant current obligations.
FAQ
How is this different from a DTI calculator?
DTI just computes the ratio of current obligations to income. This calculator goes a step further: from a DTI limit, it derives the maximum new payment and the loan amount it supports.
Where does the default 40% DTI limit come from?
It is a common orientational threshold many lenders use for total debt versus income. The real limit depends on the lender, income type, and regulation — change it in the Max DTI field.
Why is the result only orientational?
Lenders apply credit scoring, interest-rate stress-test buffers, credit history, and other obligations you may not have entered here. This is a rough estimate for planning, not a lending decision.
What counts as "other obligations"?
Payments on other loans, minimum credit card payments, alimony/child support, and sometimes rent — depending on lender policy.
How does the interest rate affect the maximum loan amount?
A higher rate lowers the maximum principal at the same payment, since more of each payment goes to interest. Worth checking the result at a few rate levels.
Does a longer term increase borrowing capacity?
Yes — a longer term lowers the required payment per unit of principal, so at the same payment limit you can borrow more. It costs more total interest.
Can I use this result as the loan amount in the mortgage calculator?
Yes, "Max loan amount" is a good starting point for the amount field in the mortgage or personal loan calculator.
Why does currency follow the header?
Calcboxer keeps one currency for the whole page. Switching it in the header reformats result amounts.