Check if any purchase fits your budget before you commit — using income, expenses, and the 30% rule.
⚠️ Estimates only. Not financial advice. Consult a qualified advisor before major financial decisions.
The Affordable Calculator uses a straightforward financial formula to tell you whether a purchase fits comfortably within your budget. It combines three key factors: your disposable income, a savings buffer, and a loan payment estimate based on your down payment, interest rate, and loan term.
The core logic follows the widely recommended 30% rule — most financial planners suggest that monthly debt payments should not exceed 30% of gross monthly income. The calculator takes the stricter of two values: 30% of your income, or your actual disposable income after expenses and savings.
If the estimated monthly payment falls within your budget cap, the purchase is marked Affordable. If it exceeds the cap, the calculator shows the maximum price you can afford at the same terms — giving you a concrete target to work toward.
Even 10–20% more upfront meaningfully lowers your monthly obligation and reduces total interest paid over the loan term.
Most people underestimate monthly expenses by 15–25%. Track all spending for 30 days before entering figures in this calculator.
A 1% difference in rate on a 3-year loan can save thousands. Compare at least 3 lenders before committing to any financing.
Never reduce your savings rate to make a purchase "look affordable." Treat savings as a non-negotiable expense, not optional.
A longer term lowers monthly payments but increases total interest paid. Model both in this calculator before deciding.
After running the numbers, wait two days before committing. This removes impulse bias and leads to better financial decisions.
Estimated Monthly Payment — The amount you'd pay each month if you borrowed the purchase price minus your down payment, at the given interest rate and term. Calculated using the standard amortization formula used by banks worldwide.
Monthly Budget Cap — The maximum monthly payment your finances can sustain without overextending. It's the lower of your disposable income or 30% of gross income. Staying within this cap keeps you protected against unexpected expenses.
Max Affordable Price — Works backwards from your budget cap to show the maximum purchase price you could afford at the current rate, term, and down payment. Use this as your target if the item you want is currently out of reach.
Disposable Income — What remains after subtracting monthly expenses and your savings contribution from gross income. Any loan payment should leave a comfortable buffer above zero for irregular costs like medical bills or repairs.