Affordability Calculator – See What You Can Comfortably Afford
When you are thinking about a new purchase, it is easy to focus on the item itself and ignore the impact on your monthly budget and long-term goals. An affordable purchase should fit comfortably within your income, essential expenses, debt payments and savings plans.
The Affordability Calculator on MyTimeCalculator helps you stress test a purchase from multiple angles: how it affects your monthly budget, how long it might take to save, how strong your overall money position is and how different options compare on total cost. Instead of guessing, you see how each decision lines up with your real numbers.
How This Affordability Calculator Works
The calculator is organized into four practical modes you can switch between using the tabs at the top:
- Monthly Budget Affordability: Checks how a new monthly cost fits into your income after essentials and debt payments.
- Savings-Based Affordability: Estimates how long it could take to save up for a purchase outright.
- Affordability Score: Gives a simple 0–100 score from your savings rate, debt load and emergency fund coverage.
- Scenario Comparison: Compares total cost and income impact for up to three different options.
Each mode focuses on a different question, but they all work together to help you make a more informed, less stressful money decision.
Mode 1: Monthly Budget Affordability
In the monthly budget mode, you enter:
- Your monthly take-home income (after tax).
- Your essential living expenses per month.
- Your existing debt payments per month.
- The estimated monthly cost of the purchase you are considering.
- The share of your free cash you are comfortable committing.
The calculator subtracts essentials and debt payments from your income to find your free cash. It then compares the new purchase cost with that free cash and your chosen comfortable share.
Budget Affordability Results
You will see:
- Free cash after essentials & debts: The money you have left to work with each month.
- Safe monthly budget for this purchase: A suggested upper limit based on your chosen comfort percentage.
- Share of free cash used: What percent of your leftover money the new payment would consume.
- Affordability verdict and note: A quick label (comfortable, stretched or risky) plus a short explanation.
This is often the fastest way to see if a new subscription, loan payment or recurring cost would put pressure on the rest of your budget.
Mode 2: Savings-Based Affordability
If you prefer to save up and pay in cash, the savings mode helps you estimate how long that might take. You enter:
- The target purchase price.
- Your current savings for this goal.
- Your planned monthly savings contribution.
- An expected annual return on savings.
- Your maximum waiting time in years.
The calculator uses a simple monthly compounding model to simulate your savings over time until you reach the target or hit your maximum years. It then reports:
- Estimated months and years to reach the target.
- Total contributions: How much of the final amount comes from the money you put in.
- Estimated growth/interest: The difference between the final balance and your contributions.
- Feasibility note: Whether the goal seems reachable within your chosen timeframe.
This view is helpful when you are deciding between buying now with financing or waiting and saving instead.
Mode 3: Affordability Score
The affordability score mode looks at your overall money situation rather than just one purchase. You enter your income, fixed and variable expenses, debt payments, liquid savings and a target emergency fund size.
The calculator then computes:
- Total monthly expenses and the room left after covering them.
- Savings rate: What percent of your income could be saved each month based on your inputs.
- Debt-to-income ratio: How much of your income is already committed to debt payments.
- Emergency fund coverage: How many months of expenses your savings could cover.
- Affordability score (0–100): Built from the metrics above.
- Category and note: A short interpretation such as very comfortable, manageable, stretched or risky.
This mode is not a formal rating, but it gives you a fast sense of whether you have strong buffers (savings and low debt) or whether you might need to strengthen your base before taking on new commitments.
Mode 4: Scenario Comparison
When you are deciding between different options, such as different subscription levels, purchase plans or finance offers, the scenario comparison tab can help. For each scenario you define:
- A short scenario name.
- Upfront cost.
- Ongoing monthly cost.
- Duration in months.
- Extra or one-time costs.
The calculator estimates total cost over the duration and the share of your monthly income the monthly cost would consume. This allows you to see which option is cheaper overall and which sits more comfortably in your budget, not just which has the lowest starting payment.
How to Use This Calculator Effectively
- Start with the monthly budget tab to see if a purchase fits your current cash flow.
- Use the savings tab if you are considering saving up instead of financing.
- Check your overall affordability score before committing to new long-term payments.
- Compare a few realistic options in the scenario tab before making a final choice.
Remember that this calculator is a planning tool. It cannot predict the future or know your full situation, but it can help you slow down, see the numbers and make more deliberate choices.
Related Finance Tools from MyTimeCalculator
Explore these additional tools to plan your money with more confidence:
Affordability Calculator FAQs
Frequently Asked Questions About Affordability
Get quick answers before you decide whether a new purchase really fits your budget.
The calculator is only as accurate as the numbers and assumptions you enter. It uses straightforward formulas—no hidden rules—to highlight the relationship between income, expenses, savings and purchases. Treat the results as planning guidance, not a guarantee.
Use your regular take-home pay after tax for income, and include all recurring bills and typical monthly spending for expenses. For the most realistic results, average your numbers over a few months rather than using a single unusually high or low month.
Many people decide what they can afford based only on income, but fixed expenses and debt payments lower the true amount you have available. The calculator focuses on what’s left after those essentials, then suggests using only part of that free cash for new commitments so you still have breathing room.
Yes. You can use it to test anything from a new subscription to a major financed purchase. For larger or long-term commitments, it’s especially helpful to use multiple tabs—check monthly affordability, savings options and your overall score together.
No. The calculator is designed for education and self-planning. If the decision involves a large loan, long-term commitment or complex situation, consider talking to a qualified financial professional as well.