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Finance & money·Loans

Loan Affordability

Find the maximum loan amount a monthly budget can support after taxes, insurance, fees, interest rate, and term. Browser-side and private.

Added May 4, 2026

Scenario A

Input

Result

Enter a value for monthly payment budget to see your result.

How it works

Estimates the largest fixed-rate loan principal a monthly budget can support after reserving room for taxes, insurance, fees, or other monthly costs.

Formula

P = Payment x (1 - (1 + r)^(-n)) / r

P
Affordable loan principal
r
Monthly interest rate
n
Number of monthly payments

Step by step

  1. 01Subtract monthly non-debt costs from the total payment budget.
  2. 02Convert the annual interest rate to a monthly rate.
  3. 03Use the present-value form of the amortization formula to solve for principal.
  4. 04Add any down payment to estimate an all-in purchase price budget.

Examples

$1,500 budget with $300 other costs

With $1,200 available for principal and interest, the supported loan is about $190k.

Inputs

Monthly payment budget:
1500
Annual interest rate:
6.5
Loan term:
30
Down payment:
50000
Monthly taxes, insurance, fees:
300

Result

Maximum loan amount:
189853.08
Max purchase price with down payment:
239853.08
Note: This is a payment-capacity estimate, not lender underwriting or debt-to-income approval.

Related guides

  • How to Calculate a Loan EMI

    Learn how to calculate Equated Monthly Installments (EMI) for a loan. Understand the EMI formula, how interest rate and tenure affect payments, and tips to.

  • What Is Loan Amortization?

    What Is Loan Amortization? -- Amortization is the schedule that pays down a loan over time. Each payment covers interest on the remaining balance plus a.

Frequently asked questions

Is this the same as mortgage preapproval?

No. Preapproval also checks income, debt, credit, assets, and lender rules.

Why subtract monthly other costs?

Costs like taxes, insurance, HOA fees, or service fees reduce the payment left for principal and interest.