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Loan Affordability Calculator

This is the question the payment calculators cannot answer: given what you earn and what you already repay, how large a loan can you service? Enter your income, obligations, a rate and a term to see the maximum principal.

Maximum loan
16,814,000
Affordable monthly payment400,000
Total repaid over the term24,000,000
Total interest7,186,163
Assumption40% of income
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How it works

The calculator first works out the monthly payment your income can support at the debt-service share you choose, after existing repayments, then inverts the standard amortisation formula to turn that payment into a principal. The debt-service share is your own assumption — lenders apply their own ratio, and they also weigh your credit history, the loan's purpose and any collateral.

P = M × ((1+r)ⁿ − 1) ÷ (r(1+r)ⁿ)

Worked examples

  • Example

    On a 1,500,000 TZS monthly income with 200,000 TZS already going to other repayments, spending 40% of income on debt service leaves 400,000 TZS a month. At an illustrative 15% over 5 years that supports a loan of about 16,814,000 TZS.

Frequently asked questions

How much can I borrow on my salary?

It depends on the monthly payment you can service, the rate and the term. Lenders typically cap total debt repayments at a share of income — this calculator lets you set that share rather than assuming one.

Does a longer term let me borrow more?

Yes. A longer term lowers the payment for the same principal, so the same monthly capacity supports a bigger loan — but you pay more interest in total.

Does this include fees and insurance?

No. It covers principal and interest only. Arrangement fees, insurance and any compulsory savings reduce what you can actually borrow.

Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.

Reviewed by the Calculator editorial team · Last updated 19 September 2026

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