Loan Affordability Calculator

The Loan Affordability Calculator determines the maximum amount you can borrow by reverse-calculating from your monthly payment budget. Using the inverse annuity formula P = M × ((1+r)^n - 1) ÷ (r × (1+r)^n), where M is the monthly budget, r is the monthly rate (annual rate ÷ 12), and n is the total number of payments (years × 12), it accurately computes your borrowing capacity.

Use it for budgeting a home purchase, understanding your auto loan limit, or any other financing decision. Compare different rates and terms to find the optimal borrowing plan. Check your first-month interest to understand the upfront interest cost, and review the amortization schedule showing the first and last 12 months to track loan progress.

Calculate your debt-to-income ratio by entering your monthly income, ensuring your loan payments remain sustainable. Financial guidelines typically recommend keeping this ratio at 25% or below — use this tool to ensure your borrowing plan aligns with healthy financial management recommended by Japan's central bank and financial authorities.