Free Affordability Calculator - Can You Afford This Purchase?
Determine if a purchase fits your budget.
Formula & Methodology
The Can I Afford This Calculator works out the largest monthly payment you can take on by multiplying your monthly income by a target debt-to-income ratio and subtracting your existing debt payments. It then compares that affordable payment to the item's monthly cost — if the affordable payment is at least as large, the purchase fits your budget.
- Affordable Payment = Monthly Income × Max DTI − Existing Debt
- Verdict = Affordable Payment ≥ Item Payment
Worked Example
Using the Can I Afford This Calculator: apply the formula above to your input values. For instance, Affordable Payment = Monthly Income × Max DTI − Existing Debt, then Verdict = Affordable Payment ≥ Item Payment. The tool performs each step instantly and shows the result.
Frequently Asked Questions
How do I know if I can afford a purchase?
It compares the cost against your income, existing expenses and savings to show whether it fits your budget without strain.
Should I factor in ongoing costs?
Yes. Include maintenance, insurance or subscription costs, since the sticker price rarely reflects the true long-term commitment.
What buffer should I keep?
Leaving an emergency cushion after the purchase helps you handle surprises without going into debt.