Borrowing Capacity Calculator
Find out how much you can borrow based on the monthly payment you can afford.
Result
Maximum loan amount
10,345.11
Total repaid
12,000.00
Total interest
1,654.89
How it works
Borrowing capacity works backwards from a payment you can afford: given a monthly amount, a rate and a term, it returns the largest loan those payments could service. The formula is the present value of an annuity. The rate matters enormously over long terms. At the same monthly payment, a one-point rise in rate can cut a twenty-year borrowing capacity by roughly a tenth — which is why buyers watch rates as closely as prices. Stretching the term raises the capacity but costs far more in total interest, since you are paying for longer on a slower-shrinking balance. And remember what is missing: this is the loan principal alone, before acquisition costs, insurance and the deposit — all of which come from elsewhere.
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Frequently asked questions
How much can I borrow?
It depends on your monthly payment, the rate and the term. A higher payment or longer term lets you borrow more.
Does a longer term let me borrow more?
Yes — but you pay more total interest. The tool shows both so you can compare.
Why will a bank lend me less than this figure?
Because lenders add their own constraints: a cap on your debt-to-income ratio, compulsory insurance, a stress test at a higher rate, and a required deposit. Treat this as the arithmetic ceiling, not an offer.
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