Present Value Loan Calculator: How Much Can You Borrow Today?
Our Present Value Loan Calculator answers: “How much loan can I get for a given monthly payment?” Perfect for affordability planning.
What is Present Value (PV) of a Loan?
The current worth of future payments, discounted at the interest rate. It’s the maximum you can borrow today if you agree to pay a fixed amount monthly.
Formula
PV = PMT × [1 - (1 + r)^(-n)] / r
PMT = payment, r = periodic rate, n = periods
When to Use
- House hunting with budget
- Car shopping
- Personal loan planning
- Comparing lender offers
Example: $1,500/mo, 6.5%, 30 Years
- PV: $237,450
- Total Paid: $540,000
- Interest: $302,550
Key Factors
- Payment: Higher = more borrowing power
- Rate: Lower = higher PV
- Term: Longer = higher PV (but more interest)
Monthly vs Annual Compounding
- Monthly: Standard for mortgages
- Annual: Rare, slightly lower PV
Pro Tips
- Include taxes & insurance in payment
- Use with DTI Calculator
- Shop rates — 0.5% saves thousands
- Don’t borrow max — keep buffer
Pair with Tools
See full schedule? Use Amortization Schedule. Compare? Try Loan Comparison.
Conclusion
Know your borrowing power before shopping. Use our Present Value Loan Calculator to stay in control. Explore more in Finance Calculators.