This calculator estimates your borrowing capacity based on your annual income, monthly expenses, and existing debts.
Learn how to use the Borrowing Capacity Calculator and its working principles
The calculator uses the following formula to estimate borrowing capacity:
Borrowing Capacity = (Annual Income / 12 - Monthly Expenses - Existing Monthly Debts) * 4
This formula calculates your monthly disposable income after subtracting your expenses and existing debts, and then multiplies it by 4 to estimate your borrowing capacity. The factor of 4 is a common multiplier used in financial calculations.