Cash & borrowingAffordability

Loan Affordability Calculator

Start from income and debt-service capacity to estimate the loan amount and asset price you can realistically afford under base and stress-rate scenarios.

Income-based borrowing capacityStress-rate scenarioDown payment impact

Income-led borrowing capacity

Start with income and debt-service room, then work forward to the maximum loan and asset price that fit the budget.

Monthly income

LKR

Existing monthly debt

LKR

Down payment

LKR

Annual interest rate

Loan term

≈ 7 years

Advanced mode

Add a DSR policy limit, stress-rate scenario, insurance burden, and processing-fee drag.

Affordable installment

LKR 90,000.00

This is the monthly payment room left after current debt and any optional insurance load are deducted.

Maximum loan amount

LKR 4,802,558.39

Maximum asset price

LKR 5,802,558.39

Modeled installment

LKR 90,000.00

Stress-case DSR

35.0%

Tenure comparison

How term length changes affordability

Longer tenures can support a larger loan, but they also extend repayment risk and increase total financing costs.

Snapshot

Affordability by policy

This table shows the borrowing room across common terms using the same monthly cash-flow constraint.

Term	Max loan	Max asset price
3y	LKR 2,633,301.39	LKR 3,633,301.39
5y	LKR 3,867,931.48	LKR 4,867,931.48
7y	LKR 4,802,558.39	LKR 5,802,558.39
10y	LKR 5,796,487.82	LKR 6,796,487.82

Perspective

Affordability should be income-led, not aspiration-led

Many borrowing decisions start from the asset price and work backward. A safer process starts from income, existing obligations, and a maximum debt-service threshold, then derives the sustainable borrowing amount.

Stress-rate analysis matters because borrowing costs can change and household cash flow can tighten. If a facility only works in the best-case rate scenario, it is not robust.

This calculator makes the trade-off visible by showing both a base affordability number and how the same loan behaves under a higher stressed interest rate.

Read the glossary: portfolio

FAQ

Common questions

What is debt service ratio?

Debt service ratio is the portion of gross monthly income used to service debt. Lower ratios are safer because they leave more room for living expenses, savings, and unexpected shocks.

Why stress the interest rate?

A stress rate tests whether the borrowing still looks manageable if rates rise or if the lender prices the facility less favorably than expected. It is a simple way to avoid fragile borrowing decisions.

Does a bigger down payment always help?

Yes, because it reduces the loan amount needed. That lowers installments, total interest, and usually improves your affordability ratio.

Keep the workflow moving

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