How is the maximum loan calculated?

The calculator subtracts your monthly expenses and existing debt repayments from your income to find disposable income. This is then scaled over the loan term and discounted for the interest rate to give an estimated maximum loan.

What debt-to-income ratio do lenders prefer?

Most UK lenders prefer a debt-to-income (DTI) ratio below 35%. A ratio above 50% will significantly limit borrowing options. This ratio compares your total monthly debt obligations to your gross monthly income.

Does this include a stress test?

No — this is a simplified affordability estimate. Lenders apply their own stress tests (typically adding 3% to the interest rate) and consider factors such as credit score, employment type, and other outgoings.

Loan Affordability Calculator

Find out how much you can realistically afford to borrow by entering your monthly income, regular expenses, and any existing debt repayments. The calculator estimates your maximum loan based on your disposable income and the loan terms.

How it's calculated

Available income = Monthly income − Expenses − Existing debt payments
Max loan = (Available × 12 × Term) ÷ (1 + Rate × Term)
Debt-to-income ratio = (Existing debt ÷ Income) × 100

Frequently Asked Questions

How is the maximum loan calculated?: The calculator subtracts your monthly expenses and existing debt repayments from your income to find disposable income. This is then scaled over the loan term and discounted for the interest rate to give an estimated maximum loan.
What debt-to-income ratio do lenders prefer?: Most UK lenders prefer a debt-to-income (DTI) ratio below 35%. A ratio above 50% will significantly limit borrowing options. This ratio compares your total monthly debt obligations to your gross monthly income.
Does this include a stress test?: No — this is a simplified affordability estimate. Lenders apply their own stress tests (typically adding 3% to the interest rate) and consider factors such as credit score, employment type, and other outgoings.