Affordability Calculator
How Much Loan Can I Afford in South Africa?
Use our free affordability calculator to find your borrowing power. Based on your income, expenses, and existing debt — see how much you qualify for before you apply.
Affordability Guide by Income
Estimated maximum loan amounts assuming no existing debt obligations. Actual limits will vary.
| Monthly Income | Max Home Loan | Max Personal Loan | Max Business Loan |
|---|---|---|---|
| R15,000/month | ~R450,000 | ~R100,000 | ~R200,000 |
| R25,000/month | ~R750,000 | ~R180,000 | ~R400,000 |
| R40,000/month | ~R1,200,000 | ~R300,000 | ~R700,000 |
| R60,000/month | ~R1,800,000 | ~R450,000 | ~R1,200,000 |
| R100,000/month | ~R3,000,000 | ~R750,000 | ~R2,000,000 |
Estimates only. Based on 30% bond / 25% personal / 30% business income ratios. No existing debt assumed.
How Banks Calculate Affordability
Gross income assessed
Banks start with your total gross monthly income from all sources — salary, rental income, investments.
Deductions applied
Tax (PAYE), UIF, pension contributions, and medical aid are deducted to arrive at net income.
Existing debt subtracted
All current monthly debt obligations (bonds, car loans, personal loans, credit cards) are deducted.
Living expenses estimated
The bank applies standard living cost estimates (ITC/Bureau norms) based on your household size.
Net disposable income (NDI) calculated
What remains is your NDI. Banks typically allow 30–40% of NDI as the maximum new loan repayment.
Affordability FAQs
How do South African banks calculate loan affordability?+
Banks use your net disposable income (NDI) to assess affordability. NDI is your gross income minus taxes, existing debt repayments, and living expenses. The NCA requires banks to run a full affordability assessment before granting credit. As a rule of thumb, total debt repayments should not exceed 35–40% of gross income.
What is the 30% rule for home loans in South Africa?+
The "30% rule" states that your monthly bond repayment should not exceed 30% of your gross monthly income. For example, if you earn R40,000/month gross, your bond repayment should ideally be no more than R12,000/month — which corresponds to a bond of approximately R1,000,000–R1,200,000 depending on the interest rate and term.
Does existing debt affect how much I can borrow?+
Yes, significantly. Banks add up all your existing monthly debt obligations (car payments, personal loans, credit cards, store cards) and subtract these from your disposable income before calculating how much new credit you can afford. High existing debt commitments reduce your borrowing capacity, even if your income is high.
Can I improve my affordability before applying for a loan?+
Yes. The most effective ways are: (1) pay off or close unused credit cards and store accounts, (2) settle short-term debt like personal loans before applying, (3) reduce your monthly expenses, and (4) avoid applying for multiple loans simultaneously. Each credit enquiry appears on your credit report and can temporarily reduce your score.
What is a debt-to-income ratio and why does it matter?+
Your debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income. South African banks typically want to see a DTI of below 40–45% for home loans. A lower DTI signals to lenders that you can comfortably manage additional debt repayments.
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