Most lenders cap your total monthly debt (including the new loan) at 28–43% of your gross monthly income, depending on the country and loan type. Enter your income, existing debts, and desired rate below to see the maximum loan amount you can realistically afford — and what your monthly payment would look like.
💰 Loan Affordability Calculator
Typical DTI limits by region (2026)
| Region | Typical max DTI | Notes |
|---|---|---|
| United States | 36–43% | Qualified Mortgage cap is 43%; most conventional lenders prefer 36% |
| United Kingdom | 35–40% | No fixed legal cap, but lenders stress-test affordability at higher rates |
| Germany / EU core | 35–40% | Banks generally keep housing costs under 35% of net income |
| Canada | 39–44% | Split into GDS (housing) and TDS (total debt) limits |
| Australia | 30–40% | Lenders apply a serviceability buffer of 1–3% above the loan rate |
Frequently asked questions
What's a good debt-to-income ratio?
Under 36% is considered healthy by most lenders. Above 43%, approval odds drop sharply and rates tend to get worse even if you qualify.
Does this calculator include a down payment?
No — this tool estimates borrowing capacity based on income and existing debt only. Subtract any down payment separately to get your total purchase budget.
Why does the interest rate matter so much?
A higher rate means more of each payment goes to interest, which shrinks the loan principal you can afford at the same monthly payment.
Is this the same as a mortgage pre-approval?
No. This gives a quick estimate. Actual approval depends on credit score, employment history, and the lender's own underwriting rules.