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Loan Affordability Calculator

Find out exactly how much you can borrow based on your income and existing financial commitments.

Your Financial Details

Currency

Gross Monthly Income

Monthly Existing Debt PaymentsCar, credit cards, student loans

Monthly Living Expenses

Annual Interest Rate (%)

Loan Term (years)

Export

Max Loan Amount

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Max Monthly Payment

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Debt-to-Income Ratio

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Disposable After Loan

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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.

Frequently Asked Questions

Banks assess your net income after tax, subtract all existing monthly commitments, and determine what portion can safely service a new loan. Most use a stress test — checking affordability at interest rates 2–3% higher than current to ensure you can handle rate increases.

Yes — select ZAR as your currency. South African banks typically lend up to 30% of gross income for home loan repayments. The National Credit Act requires full affordability assessment.

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Disclaimer: Results are estimates for informational purposes only. Not financial, tax, or legal advice. Always consult a qualified professional.