Know your repayment room before taking new credit. Model rates, terms, and income changes securely. Download results, compare scenarios, and plan confidently every month.
This calculator estimates your maximum affordable new payment by applying two limits and choosing the tighter one.
| Scenario | Income | Expenses | Existing Debts | Buffer | Rate | Term | Capacity (Payment) |
|---|---|---|---|---|---|---|---|
| Moderate | 275,000 | 140,000 | 25,000 | 10% | 20% | 36 | 65,000 |
| Tighter budget | 180,000 | 120,000 | 20,000 | 8% | 22% | 48 | 22,400 |
| Higher income | 450,000 | 220,000 | 40,000 | 12% | 18% | 60 | 120,000 |
Repayment room depends on income, essential spending, and existing debt. With income 275,000 and costs 165,000, a 10% buffer reserves 27,500, leaving 82,500 for new repayments. If the DTI cap is 40%, the debt ceiling is 110,000; with 25,000 already committed, the new-payment DTI limit is 85,000. The calculator uses the tighter limit.
Many lenders model total DTI between 35% and 45%. Lower limits suit variable income, while higher limits assume stable pay and strong reserves. If income is 180,000 and DTI is 35%, the ceiling is 63,000. With 20,000 existing payments, the maximum new payment becomes 43,000. Adjust DTI to match your risk appetite.
Payments change sharply with rate and term. A 1,500,000 loan at 20% over 36 months produces a higher payment than the same amount over 60 months, although longer terms raise total interest. Higher rates push more of each early payment into interest, slowing principal reduction. The schedule preview separates payment, principal, and balance month by month.
Stress testing checks resilience. If income drops 10% and the rate rises 3 points, capacity may fall while the tested payment rises. The buffer holds back a predictable margin for volatility. When base capacity is 65,000 and stress capacity falls near 52,000, the shortfall suggests lowering the loan, extending the term, or cutting expenses.
Headroom is the practical signal. Positive headroom means the payment fits both disposable and DTI limits; thin headroom leaves little flexibility for emergencies or price shocks. Compare maximum affordable payment to the estimated maximum loan to set a target, then rerun scenarios with different terms and rates. Export results to document options before applying. If stress status fails, consider increasing the buffer, reducing other debts, or choosing a smaller amount so repayment stays workable even under conservative assumptions for most households.
It is the highest monthly installment the calculator allows after applying both disposable-income limits and your chosen DTI ceiling, then selecting the tighter result.
DTI caps total debt as a share of income. Even if you have cash after expenses, the DTI rule may restrict additional borrowing to reduce default risk.
Use a conservative average, or test a low-income month. Increase the buffer and rerun the stress settings to reflect volatility, then base decisions on the tighter scenario.
No. The model focuses on principal-and-interest payments. Add expected fees, insurance, and taxes to your living expenses or existing debts to keep capacity realistic.
Pick values that reflect plausible downside. A small rate bump and a 5% to 15% income drop are common sensitivity tests; increase them if your income is uncertain.
More headroom generally means better flexibility. If headroom is thin, consider lowering the loan amount or extending the term so the payment remains manageable.
Disclaimer: This tool provides educational estimates. Lenders may use different rules, fees, and verification methods.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.