Personal Loan Affordability & Loan Term Guide
How much can you qualify for based on your income, and which loan term makes the most financial sense?
The Rule Lenders Use
Lenders want your total monthly debt payments (including the new loan) to stay under 36–43% of your gross monthly income. This is called the Debt-to-Income (DTI) ratio. Most lenders prefer DTI under 36%; some allow up to 50% for excellent-credit borrowers.
How Much Loan Can You Qualify For?
Based on 36% DTI at 10% APR, 3-year term. Adjust for your existing monthly debt payments:
| Gross Monthly Income | Max Total Debt (36% DTI) | Available for New Loan | Max Loan Amount |
|---|---|---|---|
| $3,000/mo | $1,080/mo | $780/mo | $24,173 |
| $4,000/mo | $1,440/mo | $1,140/mo | $35,330 |
| $5,000/mo | $1,800/mo | $1,500/mo | $46,487 |
| $6,000/mo | $2,160/mo | $1,860/mo | $57,644 |
| $7,500/mo | $2,700/mo | $2,400/mo | $74,379 |
| $10,000/mo | $3,600/mo | $3,300/mo | $102,271 |
* Based on 36% DTI, 10% APR, 3-year term, $300/mo in existing debt payments. Actual approval depends on your credit score and lender policies.
How Loan Term Affects Your Payment
The trade-off between monthly payment and total interest cost — on a $15,000 loan at 10% APR:
| Loan Amount | 1yr / 12mo | 2yr / 24mo | 3yr / 36mo | 5yr / 60mo | 7yr / 84mo |
|---|---|---|---|---|---|
| $5,000 | $439.58 | $230.72 | $161.34 | $106.24 | $83.01 |
| $10,000 | $879.16 | $461.45 | $322.67 | $212.47 | $166.01 |
| $15,000 | $1,318.74 | $692.17 | $484.01 | $318.71 | $249.02 |
| $20,000 | $1,758.32 | $922.90 | $645.34 | $424.94 | $332.02 |
| $25,000 | $2,197.90 | $1,153.62 | $806.68 | $531.18 | $415.03 |
| $35,000 | $3,077.06 | $1,615.07 | $1,129.35 | $743.65 | $581.04 |
| $50,000 | $4,395.79 | $2,307.25 | $1,613.36 | $1,062.35 | $830.06 |
* All at 10% APR. Use the calculator below to model your specific rate.