# Loan Affordability Calculator - How Much Can I Borrow in Sri Lanka? Page: https://hirantha.me/tools/loan-affordability-calculator Part of: Hirantha Sandaruwan Lakshan free tools (https://hirantha.me/tools) Updated: 2026-10-13 Find the largest loan a monthly payment can service at your rate and term, or work the payment out from your income and current debts. This is a free tool that runs in the browser: open the page to use it. File tools process files on the visitor's own device; files are never uploaded or stored. No account, sign-up, payment or watermark. Most loan calculators start with the amount and give you the payment. This one starts with the payment you can afford and gives you the largest loan it can pay off at your interest rate and term. You can also start from your take-home income and existing debts, and choose what share of income you are willing to spend on debt. Nothing you type leaves your device. The EMI formula gives the payment on a reducing-balance loan: EMI = P x r / (1 - (1 + r)^-n), where r is the monthly rate (the yearly rate divided by 12) and n is the number of monthly payments. Turning it round gives the largest loan a payment can service: P = EMI x (1 - (1 + r)^-n) / r. At a zero rate it is simply the payment times the months. The loan is rounded down to a whole rupee so the payment never goes over your budget, and the payment on that loan is shown to the cent. If you choose income and debts, the payment limit is the debt share times your monthly income, minus what you already pay on other debts, and never less than zero. You choose the share. The default of 40% is only a planning figure picked for this tool: it is not a rule of any bank or regulator. In the Central Bank of Sri Lanka's list of directions (checked 13 October 2026) we did not find a debt-to-income or debt service ratio limit for individual borrowers, but lenders apply their own tests, so ask yours. The US Consumer Financial Protection Bureau also notes that different loan products and lenders have different limits. This tool uses take-home income because that is the money you actually receive. Some lenders measure against gross income, which would allow a larger payment for the same percentage. It assumes a fixed rate on a reducing balance with equal payments at the end of each month. Processing fees, insurance, stamp duty and early-settlement charges are not included, and a variable rate changes the answer whenever the rate moves. A longer term lets the same payment support a bigger loan, but it costs far more interest. The table under the result shows the largest loan for your payment and rate over several terms, so you can see the trade-off before you choose. Q: How do I work out how much loan I can get for a monthly payment? A: Multiply the payment by (1 - (1 + r)^-n) / r, where r is the yearly rate divided by 12 (as a decimal) and n is the number of months. For Rs. 50,000 a month at 12% over 5 years that gives about Rs. 2.25 million. The calculator does this for you. Q: What share of my income should go to debt? A: There is no single correct figure. The calculator starts at 40% as a planning default that you can change. A lower share leaves more room for emergencies, and lenders set their own limits, so ask the lender what it uses. Q: Does the Central Bank of Sri Lanka limit how much I can borrow? A: Lenders decide using your income, existing debts, credit record and any security offered. We looked through the Central Bank's published list of directions on 13 October 2026 and did not find a direction that sets a debt-to-income limit for individual borrowers, so this tool does not apply one. That does not mean your lender has none. The list does include loan-to-value limits for credit facilities granted for motor vehicles, which cap a vehicle loan as a share of the vehicle's value. This tool does not apply those either, so check them if you are buying a vehicle. Q: Which interest rate should I enter? A: Enter the reducing-balance rate for your loan. If the quote is a flat rate, convert it to a real rate first with the loan calculator, because a flat rate looks much lower than the cost you actually pay. Q: Should I enter gross or take-home income? A: This tool is built around take-home income, the money you actually receive. Some lenders use gross income, which gives a bigger limit for the same percentage, so the lender's answer can differ from this one. Q: What does the optional own money box do? A: It adds a deposit or down payment you will pay yourself to the loan, to show the total you could spend. The tool does not apply any lender limit on how much of a purchase can be financed. Q: Why is the total repaid more than the loan? A: Because the payments include interest. Payment x months is the loan plus all the interest, so the longer the term, the bigger the gap. Q: Is my data stored or sent anywhere? A: No. Everything is calculated in your browser and nothing you type is sent or saved. Sources: Amortization calculator - Wikipedia (the payment formula this page rearranges), checked 2026-10-13 (https://en.wikipedia.org/wiki/Amortization_calculator); What is a debt-to-income ratio? - Consumer Financial Protection Bureau, checked 2026-10-13 (https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-why-is-the-43-debt-to-income-ratio-important-en-1791/); Central Bank of Sri Lanka, directions, circulars and guidelines for banks (looked through for any debt-to-income limit), checked 2026-10-13 (https://www.cbsl.gov.lk/en/directions) Related tools: - [Loan & leasing calculator](https://hirantha.me/tools/loan-calculator.md): Monthly payment, full repayment schedule, and the real interest rate hidden in a flat-rate quote. - [Net salary calculator (Sri Lanka)](https://hirantha.me/tools/salary-calculator.md): Take-home pay after EPF and APIT income tax, plus what the employer really pays. - [EPF & ETF calculator](https://hirantha.me/tools/epf-etf-calculator.md): Monthly EPF and ETF contributions on any salary, with a rough projection of your EPF balance. - [Compound interest calculator](https://hirantha.me/tools/compound-interest-calculator.md): Final balance, interest earned and a year-by-year table for a lump sum with optional regular deposits, compounded annually to daily. - [Savings goal calculator](https://hirantha.me/tools/savings-goal-calculator.md): The monthly deposit needed to reach a target by a date at a given interest rate, or how many months a deposit takes.