Start from your budget
Instead of asking what a loan costs, ask how much you can safely repay. Enter a monthly payment, an APR and a term, and the calculator works out the largest loan that fits.
The formula
This is the present value of your payments: loan = payment x (1 - (1 + r)^-n) / r, with r as the monthly rate and n as the number of months.
Example
A $400 monthly payment at 9% APR over 60 months supports a loan of about $19,270. Over 84 months the same payment supports a larger loan, but at a higher total interest cost.
How to pick a payment
Many lenders look at your debt-to-income ratio. Use the DTI calculator to check that a new payment keeps your total debts in a healthy range.
Remember
Lenders also consider credit history and income. This tool shows the maths, not an approval.
Frequently asked questions
Why does a longer term raise the loan amount?
The same payment is spread over more months, so it supports more borrowing.
Should I borrow the maximum?
Rarely. Leave room in the budget for surprises.
Does this include fees?
No. Fees reduce the amount you actually receive.