Loan Prequalification Calculator
Use this calculator as your first step in determining your ability to qualify for a loan.
How the loan prequalification calculator works
It applies a lender’s debt-to-income limit to your gross income, subtracts your existing debt payments, and treats what is left as an affordable new payment — then converts that payment into the loan amount it can support at your rate and term.
Worked example: with gross monthly income of $6,000, existing monthly debt payments of $500 and max debt-to-income ratio of 40.00%, the loan prequalification calculator shows loan you may prequalify for of $93,705.
- Affordable payment
- $1,900.00
- Maximum loan
- $93,705
- Current DTI
- 8.3%
- Headroom to limit
- $1,900.00
The formula
Affordable payment = income × DTI% − existing debts. Maximum loan = present value of that payment at the loan’s rate and term.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the loan prequalification calculator
What does loan prequalification mean?
An early estimate of how much a lender might lend you, based on your income and debts. It is not a guarantee — full approval also weighs credit, employment and assets.
What debt-to-income ratio do lenders allow?
It varies by loan type, commonly 36–45% of gross income. Staying below the limit improves both your approval odds and the rate you are offered.
How can I qualify for a larger loan?
Raise your income, pay down existing debts, choose a longer term, or secure a lower rate. Each increases the payment you can afford or the loan it supports.
Is the Loan Prequalification Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.