Free online tool that helps you calculate the monthly payments and total cost of a loan. It takes into account factors such as the loan amount, interest rate, and loan term to determine the monthly payment and total cost of the loan.
The amount of loan one can afford depends on a variety of factors, including their income, expenses, debt-to-income ratio, credit score, and other financial obligations.
As a general rule of thumb, most financial experts suggest that your total debt payments, including mortgage, car loans, credit cards, and other debts, should not exceed 36% of your gross monthly income. This is known as the debt-to-income ratio.
It is always important to consider your overall financial situation and avoid taking on more debt than you can comfortably afford to repay. Be sure to factor in any other financial goals or obligations you have, such as retirement savings, emergency funds, or other investments.