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Calculate your maximum loan amount and monthly payments based on your income and debts to help budget for a new home or car.
It is generally recommended that monthly repayments do not exceed 50% of household monthly income to ensure quality of life and cope with emergencies.
With a monthly income of 20,000 yuan and an existing auto loan payment of 3,000 yuan per month, banks typically cap your Debt-to-Income (DTI) ratio at 50%—this calculator helps you quickly find your maximum loan limit.
The core of a loan affordability assessment is measuring how much money you can allocate to loan repayments each month without being crushed by debt. Banks and auto finance companies primarily look at one metric: the Debt-to-Income Ratio (DTI). It equals the total amount of all mandatory monthly debt payments divided by your total monthly income, expressed as a percentage. When approving personal housing loans, most domestic banks require a DTI of no more than 50%. This means you can spend a maximum of half your income on debt repayment each month, leaving the rest for living expenses.
Based on this 50% red line, combined with your existing debt, desired loan term, and annual interest rate, our calculator reverse-engineers your maximum loan amount and the monthly payment that hits the exact DTI threshold. If you also input a down payment percentage, it will simultaneously calculate an affordable maximum home price, helping you immediately know what price range to look for when house hunting.
This tool relies on two core formulas:
1. DTI Limit Constraint
