Planning
How Much Personal Loan Can You Afford?
Use debt-to-income, the 28/36 rule, and a simple budget test to size your loan responsibly.
Lenders will often approve you for more than you should borrow. The right number is the one your budget can absorb without strain — not the one the calculator allows.
Calculate your DTI
Add up your monthly debt obligations (rent or mortgage, car payment, minimum credit card payments, student loans) and divide by your gross monthly income. Most lenders want to see total DTI below 36% after the new loan is added.
The 36% ceiling
If your existing debts plus the new loan payment push you above 36% DTI, you are taking on more risk than is comfortable, regardless of approval. Cut the loan amount, extend the term, or wait until other debts shrink.
Stress-test with a 10% income drop
Could you still make the payment if your income fell by 10%? If not, borrow less. Loans are easy to take and hard to give back.
Leave a buffer
Keep at least one month of the new payment in savings before signing. Cars break, water heaters die, jobs change — your loan does not pause for any of it.
