Start with what you do control: the payment you can afford each month. With a sample rate and a term, you will see the approximate maximum loan amount.
The preloaded values are an example: replace them with your own figures.
You could borrow up to
With these figures, if you can pay $300,00 a month for 4 years at a sample rate of 14.00% a year, the maximum amount would be about $10.978,36. In total you would pay $14,400.00 ($3,421.64 in interest).
Same monthly payment, different terms
A longer term lets you borrow more, but also pay more interest.
| Time frame | Maximum amount | Total paid | Interest |
|---|---|---|---|
| 1 year | $3.341,24 | $3.600,00 | $258,76 |
| 2 years | $6.248,32 | $7.200,00 | $951,68 |
| 3 years | $8.777,67 | $10.800,00 | $2.022,33 |
| 4 years | $10.978,36 | $14.400,00 | $3.421,64 |
| 5 years | $12.893,10 | $18.000,00 | $5.106,90 |
Results are for reference only and are not actual figures. Values depend on the country, the financial institution, taxes and current laws, and must be validated with an authorized financial institution. Banco.guru is an educational guide to what can be achieved; it does not offer products or personalized financial advice.
Tips for using this result
- Start with the payment you can afford, not the amount you want.
- Longer term = larger amount, but also much more interest.
- Leave a margin: don’t use all your payment capacity on a single debt.
- Check the result with the loan payment calculator.
How do I know how much I can borrow?
The most prudent way to answer it is the opposite of how it is usually asked: don’t start from the amount you need, but from the payment you can afford without straining your budget. With that payment, a rate and a term, the present value is calculated: the maximum amount that payment can repay.
The formula
Amount = Payment × (1 − (1 + i)−n) / i, where i is the monthly rate (annual rate ÷ 12) and n the number of months. If the rate is 0, the amount is simply payment × months.
What payment can I afford?
A frequent benchmark is that your total debt payments should not exceed roughly 30–40% of your net income, but what really decides it is your actual budget. If you don’t know your number, first use the borrowing capacity calculator.
The effect of the term
The results table shows how the maximum amount changes with the same payment over different terms. Extending the term lets you borrow more, but total interest grows fast. Borrowing the maximum possible is not a goal: ideally, borrow only what you need at the lowest total cost.
What the institution also evaluates
- Your credit history and payment behavior.
- Stability and type of income.
- Other debts and collateral.
- Internal policies and each country’s regulations.
That is why this result is an educational estimate, not a pre-approval.
Frequently asked questions
How much will they lend me based on my salary?
It depends on the institution, your history and your debts. As a guide, work out the payment you can afford (for example, a portion of your net income after other debts) and use this calculator to estimate the amount.
Why can I borrow more with a longer term?
Because the same payment repeats more times. But each extra month also adds interest, so the total cost goes up.
Is this result a pre-approval?
No. It is an educational calculation. Approval depends on each institution’s assessment.
What rate should I use?
The rate of a real offer you are evaluating. If you are comparing, try several rates to see the range of possible amounts.
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