Loan Affordability Calculator
Estimate your maximum loan amount based on your income, existing debts, and desired monthly payment.
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Commercial banks follow the central bank regulation of a 45% DTI limit. This tool is an estimate; your actual limit will depend on your credit score and bank-specific internal risk policies.
How to use
- 1
Enter your Average Net Monthly Income (after taxes).
- 2
List your existing Monthly Debt Payments (other loans, credit cards, or alimony).
- 3
Enter the Annual Interest Rate offered by your lender.
- 4
Select the Loan Term (how many months you want to pay).
- 5
The tool uses the Debt-to-Income (DTI) ratio to estimate the maximum loan principal you can qualify for.
Formula
We calculate affordability using the DTI limit (typically 45% in Mongolia). Then we use the inverse annuity formula to find the principal:
Frequently asked questions
What is the Debt-to-Income (DTI) ratio?
The DTI ratio is the percentage of your net monthly income that goes toward paying debts. Banks use this to determine your risk. In Mongolia, most banks set a limit where your total debt payments cannot exceed 45% of your income.
How can I increase the amount I can borrow?
You can increase your borrowing power by paying off existing small loans/credit cards, increasing your down payment, or finding a co-borrower to add to the total household income.
Is the result a guarantee of bank approval?
No. This tool provides a mathematical estimate. Banks also look at your credit history (Mongol Bank database), employment stability, and the value of your collateral (the house or car you are buying).