Free loan prequalification calculator
Estimate the loan amount you qualify for — enter income, debts, and rate to see the maximum loan within DTI guidelines, updated live, as you type.
On this page10 sections
Fixed-rate personal loan estimate. Actual APR depends on creditworthiness, lender, and term. Check for origination fees.
Results are estimates. Consult a professional.
How the loan prequalification calculator works
Lenders assess your ability to repay by measuring the debt-to-income ratio (DTI) — the share of your gross monthly income consumed by all monthly debt payments. The calculator backs out the maximum mortgage or loan payment your income and existing debts can support at a given DTI cap, then converts that maximum payment into the largest loan balance it can service at the quoted rate and term.
Worked example: $7,000/mo income, 43% DTI, mortgage at 7%
Alex earns $7,000/mo gross and carries $800/mo in existing debt payments (car loan + student loan minimum). The lender applies a 43% back-end DTI cap. Alex wants to know the largest mortgage they can prequalify for at 7% APR over 30 years.
Maximum loan amount by income and existing debt
The table uses a 43% back-end DTI, 7% APR, and a 30-year term. Adjust your inputs in the calculator above for different rates or terms.
| Income/mo | $500 existing debts | $1,000 existing debts |
|---|---|---|
| $5,000 | $208,285 | $133,560 |
| $7,000 | $330,765 | $256,040 |
| $10,000 | $490,440 | $415,715 |
| $15,000 | $783,160 | $708,430 |
Source: CFPB, Fannie Mae underwriting guidelines. Estimates assume 43% back-end DTI, 7% APR, 30-year term. Actual approvals vary by lender, credit profile, and property type.
Tips for maximizing your loan prequalification
Your prequalification ceiling is set by income, existing debts, and the lender's DTI cap. Improving any of these levers raises the maximum loan you can qualify for.
- Pay down existing debts before applying. Eliminating a $300/mo car payment at a 43% DTI cap can add roughly $45,000 to your maximum loan amount at 7% / 30yr.
- Include all income sources. Lenders can count regular bonus income, rental income, side-business net income, alimony received, and Social Security — document each source with two years of history.
- Compare front-end and back-end DTI. Many lenders also apply a front-end (housing-only) DTI cap of 28–31%. Your mortgage payment alone should not exceed that share of gross income.
- Get prequalified, then preapproved. Prequalification is a self-reported estimate; preapproval involves a hard credit pull and document verification. Sellers and agents treat preapproval letters as serious offers.
- Improve your credit score first. A score above 740 typically unlocks the best rates. Even a 0.5% rate reduction on a $300k mortgage saves about $90/mo and nearly $33,000 over 30 years.
Accuracy and limitations
This calculator produces a prequalification estimate based on income, debts, and DTI ratio only. It does not account for credit score minimums, down payment requirements, property type restrictions, lender-specific overlays, or the cost of property taxes and insurance (which also count toward DTI in a formal mortgage underwriting). Actual approval amounts may be higher or lower.
Not financial advice — consult a financial professional for your situation.
Loan prequalification terms defined
About this loan prequalification calculator
This calculator runs entirely in your browser — nothing you enter is sent to any server.
Browse more in our finance calculators, or explore the complete library on the free calculators page.