Borrowing Power Calculator
Estimate how much you can borrow based on your income, expenses, interest rate, and loan term.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Borrowing Power Calculator
- Enter your annual income (e.g., $80,000). Use whole dollars only.
- Enter your total monthly debts (e.g., $500). This includes credit card payments, car loans, etc.
- Enter the annual interest rate (e.g., 5 for 5%). Use decimal if needed (e.g., 4.5).
- Enter the loan term in years (e.g., 30). Must be a whole number.
- Enter your down payment (e.g., $20,000). This is the cash you have upfront.
- Click "Calculate Borrowing Power" or press Enter.
What you get:
- Estimated Borrowing Power – the maximum loan amount you can afford.
- Monthly Payment – your estimated monthly mortgage payment (based on 43% debt-to-income ratio).
- Total Affordable Price – loan amount plus your down payment.
All values are in US dollars. Inputs must be non-negative numbers; loan term must be a whole number ≥1.
Previous Results
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Frequently Asked Questions
Borrowing power is the maximum amount a lender is likely to approve you for based on your financial situation, including income, existing debts, interest rates, and loan term.
We calculate your monthly income and apply a 43% debt-to-income ratio limit. After subtracting your monthly debts, we determine the maximum monthly payment. Using the loan formula, we convert that payment into a loan amount, then add your down payment for the total affordable price.
You need your annual income, total monthly debt payments, expected annual interest rate, loan term in years, and any down payment amount.
