Borrowing Power Calculator
Calculate how much you can borrow based on your income and expenses
Enter Your Financial Details
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Results
Understanding Borrowing Power
Key Factors
Your borrowing power is influenced by several factors:
- Income:
Your total annual income before taxes
- Expenses:
Monthly living expenses and financial obligations
- Repayment Rate:
The percentage of income that can go towards loan payments
Tips to Increase Borrowing Power
- Reduce Expenses:
Lower monthly expenses increase your borrowing capacity
- Manage Debt:
Pay down existing debts to improve borrowing power
- Increase Income:
Higher income directly increases borrowing capacity
Calculation Method
- • Based on monthly income
- • Accounts for all expenses
- • Considers existing debts
- • Includes safety buffer
- • Uses standard lending criteria
Financial Health
- • Monitor debt-to-income ratio
- • Maintain emergency savings
- • Track monthly expenses
- • Review credit score
- • Plan for future expenses
Documentation
- • Income statements
- • Tax returns
- • Bank statements
- • Expense records
- • Debt statements