Loan Affordability Calculator
Find out how much you can afford to borrow based on your income, expenses, and existing debt commitments.
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Affordability Results
Maximum Loan Amount
R 179 377
at 18% over 60 months
Available for Repayment
R 4 555
per month
Debt-to-Income Ratio
35.0%
Healthy
Income & Affordability Breakdown
- Gross monthly incomeR 35 000
- Est. tax deduction (~22%)-R 7 700
- Est. net incomeR 27 300
- Existing debt repayments-R 5 000
- Available for new loanR 4 555
💡 Reduce existing debt to borrow more
Paying off R1,000 of existing monthly debt increases your maximum loan amount by approximately R 39 380 at current settings.
* Each rand of existing debt you clear frees up repayment capacity, which lenders convert into a higher borrowing limit. Closing a R1,000/month clothing account or store card before applying for a bond can increase your approved amount by R40,000–R120,000.
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* This is an estimate only. Lenders conduct their own affordability assessments in line with the NCA. Results may vary.
How does loan affordability work in South Africa?
Under the National Credit Act (NCA), South African lenders are legally required to conduct an affordability assessment before granting credit. They must verify your income, calculate your net disposable income (NDI), and ensure the new loan repayment is affordable after all existing obligations.
The industry standard is a debt-to-income (DTI) ratio of no more than 35–45%, meaning total monthly debt repayments should not exceed 35–45% of your net income. Banks may apply stricter limits depending on the product type and loan size.
How to Improve Your Borrowing Power
Your affordability assessment determines how much a lender will approve. Here's how to maximise it before you apply.
Pay Off Small Debts First
Each R1,000 of monthly debt you eliminate frees up repayment capacity. At 18% over 5 years, freeing R1,000/month increases your maximum loan by approximately R40,000. Clear store cards, clothing accounts, and small personal loans before applying for a large loan or bond.
Apply After a Salary Increase
Lenders use your current gross salary at application date. Waiting 2–3 months after a salary increase means your affordability is assessed on the higher figure. A 10% increase on R35,000 = R3,500 more gross income — which can unlock R60,000–R120,000 more in borrowing power.
Keep Your DTI Below 35%
A DTI below 35% signals financial health and often results in a prime rate or below. At 35%+ DTI, lenders add a risk margin of 0.5–2%. On a R1m bond over 20 years, that extra margin costs R80,000–R320,000 in additional interest. Managing your DTI directly reduces your cost of credit.
Save a Larger Deposit
A bigger deposit reduces the loan amount needed, lowering the required monthly repayment and improving your DTI. For a bond: a 20% deposit (vs 10%) reduces the loan by 11%. Banks also reward larger deposits with better interest rates — often 0.25–0.5% lower.
Fix Your Credit Score Before Applying
A credit score below 600 often means an automatic decline or a significantly higher rate. Check your score (free on TransUnion and Experian) 3–6 months before applying. Dispute incorrect listings, ensure all payments are current, and keep credit utilisation below 30%.
Use a Longer Term to Qualify (with caution)
A longer term reduces the monthly repayment, pushing your DTI below the lender's threshold and unlocking approval. On a R500k loan, extending from 3 to 5 years saves R4,000/month. But: longer terms cost significantly more in total interest — use this as a last resort, not a default strategy.
Affordability Reference Table
Approximate maximum loan amounts at 35% DTI (no existing debt), based on gross monthly income. Assumes ~22% effective tax rate.
| Gross Monthly Income | Available/month | Personal Loan (18%, 5yr) | Bond (11.75%, 20yr) | Vehicle Finance (13.5%, 5yr) | |||
|---|---|---|---|---|---|---|---|
| 35% of net | Max loan | Monthly | Max bond | Monthly | Max vehicle | Monthly | |
| R 15 000 | R 4 095 | R 151 300 | R 4 095/mo | R 378 800 | R 4 095/mo | R 175 300 | R 4 095/mo |
| R 20 000 | R 5 460 | R 201 700 | R 5 460/mo | R 504 900 | R 5 460/mo | R 233 700 | R 5 460/mo |
| R 25 000 | R 6 825 | R 252 100 | R 6 825/mo | R 631 100 | R 6 825/mo | R 292 200 | R 6 825/mo |
| R 35 000 | R 9 555 | R 352 900 | R 9 555/mo | R 883 500 | R 9 555/mo | R 409 100 | R 9 555/mo |
| R 50 000 | R 13 650 | R 504 200 | R 13 650/mo | R 1 262 400 | R 13 650/mo | R 584 400 | R 13 650/mo |
| R 75 000 | R 20 475 | R 756 300 | R 20 475/mo | R 1 893 600 | R 20 475/mo | R 876 500 | R 20 475/mo |
| R 100 000 | R 27 300 | R 1 008 300 | R 27 300/mo | R 2 524 700 | R 27 300/mo | R 1 168 800 | R 27 300/mo |
* Assumes no existing debt, 35% DTI, ~22% effective income tax, reducing-balance PMT formula. Actual approval depends on lender assessment, credit score, and full NCA affordability check.
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Rates are indicative and subject to change without notice. Finance EzyFind is a free comparison and matching service — not a lender or credit provider. All lending is subject to the National Credit Act (NCA). Please borrow responsibly.
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