What Loan Amount Can You Afford Based On Monthly Payments?
When you are looking into getting a loan, it is easier to estimate the amount you can pay monthly, based on your current financial situation, than the total loan amount you can pay off, including its interest rate and its term. It is a common situation when you shop for a car or a home. In fact, knowing the total amount of the monthly payment can play in your favour when applying for a loan.
This important number informs you from the start if up front money would be required on a transaction. For example, if you want to buy a house at $300,000.00 and you calculate that you can afford a mortgage of $240,000.00, you know that you require a cash down of $60,000.00 to be accepted, or at least avoid being refused automatically.
This approach can protect your credit score from decreasing since you avoid making multiple credit applications. With the following calculator, you can predict the possible total loan amount to cover based on your monthly payments, the interest rate and the term.
Please change the suggested values with your own amounts in the blue text boxes.
Our financial calculators start with default values to suggest what to enter typically in each modifiable field, displayed as blue text boxes, in order to simulate a common scenario. Please change those values with your own. To keep track of your changes, the blue box will turn gray after they are modified.
You will also notice that our calculators behave like financial applications and recalculate automatically all values with each change instead of having to click on some extra button or going to a new result page, this is intentional and helps understand the effect of one change with the overall result in a more dynamic and instantaneous manner.
However, charts in our older calculators are not updated automatically, so if there is an "Update" button next to the chart, make sure to click on it after you make a change before you analyze it.