Loan Affordability Calculator ☆ Stoor

Affordability is a legal requirement, not a courtesy

Under the National Credit Act, a credit provider must conduct a reasonable affordability assessment before granting credit. Lending without one is reckless credit — and a court can suspend or set aside a reckless agreement.

That gives you a genuine protection most borrowers never use: if a lender never asked for your income and expenses, that is a problem with their conduct, not just an unusually easy approval.

Work from take-home, not gross

Lenders assess against gross income; you live on what lands. R25,000 gross is about R21,442 after PAYE and UIF; R50,000 gross is about R38,747. Check yours with the income tax calculator and use that figure here.

Then subtract everything already committed before deciding what is left for a new repayment:

• Existing loans, cards and store accounts — minimum payments are not the real cost, since a card paid at the minimum barely moves;
• Rent or bond, rates, levies, utilities;
• Medical aid, insurance, retirement contributions;
• Transport and fuel — model it in the fuel calculator;
• School fees and family support, which lenders rarely capture but you certainly pay.

The test that matters: your worst month

The usual question is "can I cover this repayment?" The better one is: can I cover it in a bad month and still eat?

Build the answer around the month when the car needs work, someone is ill, and school fees fall due — not the month when nothing happens. A repayment that only works in a good month will eventually be funded by more credit, which is how manageable debt becomes unmanageable.

And stress-test rate-linked debt: if prime rose two percentage points from today's 10.50%, could you still pay? Rates have moved substantially within the span of a normal bond term.

What the credit actually costs

Different credit types are capped very differently under the NCA, and choosing the wrong instrument is expensive:

Plus capped fees: initiation up to R1,207.50, monthly service R69, and credit life at R4.50 per R1,000 of cover per month. On smaller loans those can rival the interest — which is why you should always ask for the total amount repayable rather than comparing advertised rates. Test it in the personal loan calculator.

Improve the answer before you apply

1. Check your credit record — free once a year, and errors are common. A better record means a better rate, which changes affordability more than a bigger deposit does;
2. Clear the most expensive debt first — see the debt payoff planner. Reducing commitments raises capacity faster than raising income;
3. Do not apply everywhere at once. Multiple applications in a short period are visible and can count against you;
4. Build a buffer. An emergency fund is what stops the next surprise becoming another credit agreement — project it in the savings calculator.

Frequently asked questions

Why is my qualifying amount lower than a lender offered?

This estimates what is responsible, not the maximum a provider will extend. Lenders assess against their own criteria and their own risk appetite.

What percentage of income should go to debt?

Rather than a single rule, test the remainder: after all commitments, can you cover a bad month? If not, borrow less or lengthen the term — and compare totals either way.

Does the lender count my family obligations?

Often not. Support you send monthly is a real commitment even if it appears on no statement. Subtract it yourself.

What is reckless credit?

Credit granted without a proper affordability assessment, or where the borrower clearly could not afford it. A court can suspend the agreement's obligations. If you believe this applies to you, get advice — including from a registered debt counsellor.

Should I use debt review?

It provides real protection when you are genuinely over-indebted, but it restricts new credit while you are under it. Speak to a registered debt counsellor before deciding.

NCA caps are per the Limitations on Fees and Interest Rates Regulations applied to the current 7.00% repo rate; prime is 10.50%. Take-home figures come from this site's own PAYE engine using the 2026/27 tables. General information, not financial advice.