Personal Loan Affordability Calculator
Use this calculator to estimate how much personal loan you might be able to afford based on your income and existing debt obligations. This is a simplified tool and does not guarantee loan approval. Lenders will consider many factors, including your credit score, employment history, and debt-to-income ratio.
Your Estimated Maximum Monthly Loan Payment:
$0.00
Your Estimated Maximum Loan Amount:
$0.00
Disclaimer: This is an estimation. Actual loan amounts and terms will vary based on lender policies, your creditworthiness, and other factors.
.calculator-container {
font-family: Arial, sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 600px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
margin-bottom: 20px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-container button {
background-color: #4CAF50;
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
transition: background-color 0.3s ease;
}
.calculator-container button:hover {
background-color: #45a049;
}
.calculator-result {
text-align: center;
margin-top: 20px;
background-color: #eef;
padding: 15px;
border-radius: 5px;
border: 1px solid #ddd;
}
.calculator-result h3 {
color: #333;
margin-bottom: 10px;
}
.calculator-result p {
font-size: 1.1em;
color: #007bff;
font-weight: bold;
}
.calculator-result p:last-of-type {
font-size: 0.9em;
color: #666;
font-weight: normal;
margin-top: 15px;
}
function calculateAffordability() {
var monthlyIncome = parseFloat(document.getElementById("monthlyIncome").value);
var existingDebtPayments = parseFloat(document.getElementById("existingDebtPayments").value);
var desiredLoanTermYears = parseInt(document.getElementById("desiredLoanTermYears").value);
var estimatedInterestRate = parseFloat(document.getElementById("estimatedInterestRate").value);
var resultMaxMonthlyPaymentElement = document.getElementById("maxMonthlyPayment");
var resultMaxLoanAmountElement = document.getElementById("maxLoanAmount");
resultMaxMonthlyPaymentElement.innerText = "$0.00";
resultMaxLoanAmountElement.innerText = "$0.00";
if (isNaN(monthlyIncome) || isNaN(existingDebtPayments) || isNaN(desiredLoanTermYears) || isNaN(estimatedInterestRate)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (monthlyIncome <= 0 || existingDebtPayments < 0 || desiredLoanTermYears <= 0 || estimatedInterestRate < 0) {
alert("Please enter valid positive values for income and loan term, and non-negative values for debt and interest rate.");
return;
}
// A common guideline is to keep total debt payments (including new loan) below 36%-43% of gross income.
// For simplicity here, we'll use a common rule of thumb for *discretionary* income for loan payments.
// Let's assume lenders might allow up to 50% of income not used for essential living expenses to be for debt.
// A simpler approach: limit total debt payments to a percentage of net income. Let's use 45% as a safe upper bound.
var maxTotalDebtPayment = monthlyIncome * 0.45;
var maxMonthlyLoanPayment = maxTotalDebtPayment – existingDebtPayments;
if (maxMonthlyLoanPayment 0 && numberOfMonths > 0) {
maxLoanAmount = maxMonthlyLoanPayment * (1 – Math.pow(1 + monthlyInterestRate, -numberOfMonths)) / monthlyInterestRate;
} else if (monthlyInterestRate === 0 && numberOfMonths > 0) {
// If interest rate is 0%, loan amount is simply monthly payment * number of months
maxLoanAmount = maxMonthlyLoanPayment * numberOfMonths;
}
// Format results
resultMaxMonthlyPaymentElement.innerText = "$" + maxMonthlyLoanPayment.toFixed(2);
resultMaxLoanAmountElement.innerText = "$" + maxLoanAmount.toFixed(2);
}