Check DTI and largest affordable loan in a minute
Enter an applicant’s income and outgoings with your affordability rules. See debt-to-income, the largest loan each rule allows at the stressed rate, and whether the requested loan passes.
Largest affordable loan
The €15,000 loan costs €333.67 a month at the stressed rate of 12.00%, which is over the debt-to-income limit. The rules allow up to €13,037.
Where income goes
The bar shows monthly income and where it goes, including the new instalment at the stressed rate, and the dashed line marks the debt-to-income limit.
Figures
| Living costs used | €1,100 |
| Instalment | €311.38 |
| Instalment at 12.00% | €333.67 |
| DTI before loan | 35.9% |
| DTI with loan | 46.4% |
| Instalment under DTI | €290.00 |
| Instalment under buffer | €700.00 |
| Left each month | €616.33 |
| Largest affordable loan | €13,037 |
These rules paste into a decision table with debt-to-income and the monthly buffer as conditions and the decision as the result.
Get the result by email
The next step is to use these rules in the credit decision, with the stress worked out on every application and each change tested on past ones. Start free
Show formulas
Living costs used = max(Living costs, Living cost floor) Instalment at Annual rate + Rate stress = Loan amount × r ÷ (1 − (1 + r) ^ −Term in months) DTI = (Housing cost + Existing debt payments + Instalment) ÷ Net income Instalment under DTI = Maximum DTI × Net income − Housing cost − Existing debt payments Instalment under buffer = Net income − Housing cost − Existing debt payments − Living costs used − Minimum buffer Largest affordable loan = Largest loan at the stressed rate
These rules and their limits are your policy. The check uses one month’s figures, with no income verification or fees.
Debt-to-income and loan affordability
The debt-to-income ratio compares monthly housing costs, existing debt payments and the loan instalment with monthly net income. Before the loan, the instalment is left out.
The tool compares the requested instalment with the room under your DTI and buffer rules, using the stressed rate. It shows the largest loan allowed by the tighter rule and whether the requested loan passes.
Common questions
How do lenders calculate debt-to-income?
Add monthly housing costs, existing debt payments and the loan instalment, then divide by monthly net income. Before the loan, leave out the instalment.
What debt-to-income ratio do lenders accept?
The maximum debt-to-income ratio is set by the lender’s own policy. This calculator uses the maximum you enter.
How do I work out the largest affordable loan?
The tool finds the room under the DTI rule and the buffer rule, then uses the smaller amount to work out the largest loan at the stressed rate over the term.
Why do lenders stress the interest rate in affordability checks?
A rate stress raises the interest rate used to calculate the instalment. This tool uses the stressed instalment to check whether the requested loan fits both rules and to work out the largest loan each rule allows.
What is the difference between a DTI limit and a monthly buffer?
The DTI limit sets how much of monthly net income can go to housing, existing debts and the loan instalment. The monthly buffer rule sets the minimum left after housing, existing debts, living costs and the instalment.