Loan Affordability Calculator
Evaluate your loan repayments, debt-to-income ratio, and discover how much you can safely borrow based on your take-home pay and current debt commitments.
Lenders in Kenya (banks, SACCOs, microfinance) evaluate credit scores, CRB reports, arrangement fees, and insurance in addition to your debt-to-income ratio. This estimate uses standard reducing-balance amortisation.
Income & Loan Parameters
Enter your current earnings and the financing details you are considering.
Current loans, SACCO, credit cards.
Proposed Loan Details
SACCO ~12%, Bank ~14%–18%.
Affordability & Debt Capacity
Estimated Monthly Repayment
Ksh 17,089
Total Repayable: Ksh 615,197 (Interest: Ksh 115,197)
Repayment Schedule Preview
Monthly breakdown of principal and reducing interest.
How this tool works
Responsible borrowing ensures loan repayments do not compromise your ability to cover basic living expenses:
- Monthly Repayment: Computed using standard amortisation: P × (r(1+r)ⁿ) ÷ ((1+r)ⁿ - 1).
- Total Debt-to-Income (DTI): (Existing Monthly Debt + New Loan Repayment) ÷ Monthly Income.
- Safe Borrowing Capacity: The maximum loan you can service while keeping total debt payments under 35% of your income.
Frequently asked questions
- What is a Debt-to-Income (DTI) ratio?
- Your Debt-to-Income (DTI) ratio is the percentage of your monthly gross or take-home income that goes toward paying loan and credit debts. For example, if you earn KES 100,000 and pay KES 30,000 toward loans, your DTI is 30%.
- What is considered a safe DTI ratio for loans in Kenya?
- Most commercial banks, SACCOs, and micro-financiers in Kenya consider a total DTI of 33% to 40% as the maximum safe threshold (often referred to as the 'two-thirds rule', ensuring you retain at least two-thirds of your income for living expenses).
- How is 'How much can I safely borrow?' calculated?
- Our calculator takes your monthly income, reserves a safe headroom up to 35% of your pay for total debt obligations, subtracts any existing loan payments, and solves for the maximum loan principal that fits within that monthly repayment capacity over your chosen term.