Tool

Payment capacity calculator

Apply the 30%-of-income rule —adjustable between 20% and 40%— to estimate how much you can put toward a new monthly payment, after subtracting what you already pay.

Credit cards, loans, auto financing, etc.
Available for a new monthly payment
Recommended room, after subtracting your debts
Conservative limit (20%)
Target limit (30%)
Already committed
Available room

Assumptions & method

  • Reference rule: your total debt payments should not exceed 30% of your net income (adjustable range of 20% to 40%, depending on your profile). It is a prudent guide, not a legal requirement.
  • ‘Available’ = income × target percentage − current debt payments.
  • Use your net and stable income; do not include one-off income.
  • Everyone is different: fixed expenses, dependents and job stability change what a healthy margin is. Use it as guidance.
Frequently asked questions

The essentials, in brief

Why 30% and not more?
It is a prudent starting point that most origination criteria consider sustainable: it leaves room for living expenses, contingencies and saving. The 20% to 40% range lets you tailor it to your situation: 20% if your income is variable, up to 40% if you have solid collateral and low expenses.
Does my rent or home mortgage count?
For a conservative reading, yes: include all your fixed monthly commitments. Some models separate housing from the rest; here we use a simple rule over the total debt you enter.
Does this determine whether I get approved for a loan?
No. It is a guide for you. The credit decision also considers collateral, credit history, purpose and income stability. At Tunton we review it case by case.
Next step

Tell us about your deal

Tell us how much you need and what collateral you can offer. We'll tell you frankly whether it works and how we'd structure it.

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