Can You Afford It? The Loan Affordability Calculator

We often make purchase decisions based on our abilility to make the monthly payments. This can be the case when we plan to buy a TV set, car, or a house. This calculator solves for what you can afford based on 3 factors: Monthly Payment, Interest Rate, and Loan Duration.  

For example, Sergio lives in Rochester, New York and wants to buy a house. His profile:

  1. $1500 available per month;
  2. qualifies for a 3.75% APR fixed rate mortgage; and
  3. the APR is for 30 years.

With the values input into the calculator, the mortgage he can afford to take is $323,893.

 


For the curious minds, you can check out the technical appendix to this calculator.

Note: This calculator is strictly for references only.  Actual calculations might vary depending on the lending institution.