Loan Affordability Calculator

How Much Loan Can I Afford?

Lenders typically use the debt-to-income (DTI) ratio to assess affordability. Most home loan lenders cap total debt repayments at 43% of gross monthly income. If your existing debts already account for 20% of income, you have limited room for new borrowing without exceeding safe DTI thresholds.

DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100. A DTI below 36% is considered healthy. 36%–43% is manageable. Above 43% makes loan approval difficult and suggests financial stress risk. South African banks typically lend up to 30% of gross income for home loan repayments.