This calculator follows the format of a standard loan application form which assesses the monthly disposable income of the borrower.

However, the example has been extended to calculate the amount that could be borrowed if the disposable income was used to repay a theoretical loan.

The calculator assumes monthly repayments and only a single field has to be filled to perfom the calculation. Loan variables which you can set are the interest rate and the term of the loan.

Interest p.a. (%)
This is the annual interest rate.
Term (years)
This is the total duration of the loan, in years.
Repayments
These are the periodical loan repayments.
APR (%)
This is the "annual percentage rate" charge which all UK loan providers must disclose. This amount gives you a comparable interest rate whichever lender you select.
Total interest
This is the total amount of interest paid on the loan.