Finance · Loans
Loan Affordability Calculator
Estimate a comfortable loan size from take-home income, other EMIs, rate and tenure. Uses a FOIR 50% sketch for EMI room, then converts that room into an affordable loan.
Your affordability details
1,000 – 20 Lakh
0 – 10 Lakh (500+ typical)
4% – 20% (home loan range)
1 – 30 years
Affordable loan amount
—
How this calculator works
First-time home or car shoppers use this page to set a comfortable borrowing budget before they fall in love with a price tag. Households also use it to see how large an EMI share of take-home feels after other loans, and people who already saw an eligibility figure come here to ask a different question: should I borrow that much?
Enter take-home income, other monthly EMIs, expected rate (% p.a.) and tenure. You get available EMI, affordable EMI and an estimated affordable loan under a fixed 50% FOIR sketch. That 50% is a capacity-style share built into the runtime, not a comfort target. Leave a buffer for rent, living costs and rate moves. This is a planning estimate, not approval. For FOIR capacity ceiling language, use the loan eligibility calculator.
- Enter monthly take-home income (₹1,000 – ₹20 Lakh).
- Add other monthly EMIs if any (₹0 – ₹10 Lakh).
- Set the expected interest rate (% p.a., 4% – 20%).
- Set tenure in years (1 – 30).
- Read available EMI, affordable EMI and affordable loan amount as they update.
Formula
available_emi = (monthly_income × FOIR% / 100) − monthly_obligations
affordable_loan = PV(available_emi over tenure at monthly rate)
On this page FOIR is fixed at 50% in the runtime. There is no FOIR slider. If available EMI would go below zero, it is floored at 0. Affordable EMI matches that available EMI room on this tool.
monthly_income= take-home pay you enter (₹)monthly_obligations= other monthly EMIs already running (₹)FOIR%= 50 on this toolr= monthly rate = annual % p.a. ÷ 12 ÷ 100n= months = years × 12PV= present value of an annuity equal to available EMI fornmonths at rater
Example conversion: 7.5% p.a. → r = 0.00625. For 10 years, n = 120. Method detail for the EMI identity behind PV: how EMI is calculated.
Assumptions: Fixed FOIR 50%; fixed rate for the tenure sketch; other EMIs you enter are complete; no rent line, credit score, LTV, fee loading or lender approval rules.
Examples
More about this calculator
What affordability means on this page
Affordability answers “how much should I be comfortable borrowing?” It helps a first-time buyer set a budget, a household check EMI share of take-home and someone who already saw eligibility decide whether that ticket still leaves room after rent and a buffer.
It does not answer “how much might I qualify for?” as a FOIR ceiling story (that is eligibility) and it does not turn a known principal into an instalment schedule (that is an EMI tool). Swap the page name to eligibility and these comfort paragraphs stop fitting: the job here is should-I-borrow framing, not qualify-or-not capacity language alone.
EMI share of income and why you need a buffer
This runtime treats 50% of income minus other EMIs as the EMI room used to price an affordable loan. That share is a FOIR-style capacity sketch, not a recommendation to spend half your take-home on instalments.
Many households are safer with a lower EMI share once rent, school fees, groceries and an emergency buffer sit beside the loan. If the result feels high, cut the loan size or lower the EMI you are willing to carry, rather than treating 50% as a comfort goal.
Use take-home income, not CTC
Enter monthly money that actually lands after PF, tax and other payroll deductions. Gross CTC overstates what you can pay and inflates the affordable loan.
If you only know annual CTC, convert to realistic in-hand first. The salary calculator helps sketch take-home before you paste a number here. Self-employed borrowers should use a stable monthly surplus they can live on, not a peak month.
What to put in other monthly EMIs
Add every fixed loan instalment already running: home, car, personal, education, gold-loan dues and similar contractual EMIs. Card minimums you treat as recurring also belong here if they reduce monthly cash left for a new loan.
Rent, school fees and groceries are not entered in this field. They still matter for comfort. Mentally keep them outside the 50% sketch, then shrink the loan if the leftover budget looks thin.
Affordability vs eligibility
Eligibility asks what a FOIR-style formula might allow you to qualify for. Affordability asks whether borrowing near that size still leaves a livable monthly budget after rent, fees and a buffer.
The two pages share similar maths under a 50% FOIR runtime, but they are not the same decision. Eligibility is the capacity ceiling / qualify question. Affordability is the comfort / should-I-borrow question. A high eligibility figure can still feel tight month to month. Run loan eligibility for capacity, this page for comfort, then an EMI calculator once you pick a ticket. Do not treat either estimate as approval.
What the default result means
Using the page defaults as an example on first load (income ₹60,000 · other EMI ₹0 · 7.5% p.a. · 10 years / 120 months), this calculator shows available EMI ≈ ₹30,000, affordable EMI ≈ ₹30,000 and affordable loan ≈ ₹25,27,342.28.
Suggested EMI share on this FOIR sketch is 50% of income (₹30,000). That is a capacity-style share built into the tool, not a comfort recommendation. Keep a buffer below that line if rent and living costs are heavy. The estimated loan is about 42.1× monthly income (₹25,27,342.28 ÷ ₹60,000). That multiplier is a reading of this default example only, not a bank rule.
Decision angle: comfort is not the same as approval. Change the sliders for your income and other EMIs; these figures are the default page-load example only. Estimate ≠ approval.
Real-world examples
Chip presets match the scenarios below. Load a chip so the calculator lines up with the numbers. Situations cover a clean first-home comfort budget, higher income with an existing EMI, a starter salary with a short clock and a high earner on a long home-loan tenure.
Example 1: page defaults (first-home comfort budget)
Situation: a first-time home shopper sets a comfortable ticket before browsing listings, with no other EMIs running.
Given: load 60k · 0 · 10y: income ₹60,000 · other EMI ₹0 · 7.5% p.a. · 10 years.
Result: available EMI ≈ ₹30,000 · affordable EMI ≈ ₹30,000 · affordable loan ≈ ₹25,27,342.28.
Takeaway: FOIR 50% sets ₹30,000 EMI room. At 7.5% over 10 years that room funds roughly ₹25.27 lakh. Treat half of take-home as a capacity sketch, not a lifestyle target; leave buffer for rent and living costs.
Example 2: higher income with one existing EMI
Situation: a household earning ₹1 lakh already pays ₹15,000 toward another loan and wants a 20-year comfort sketch at 8% p.a.
Given: load 1L · 15k · 20y: income ₹1,00,000 · other EMI ₹15,000 · 8% p.a. · 20 years.
Result: available EMI ≈ ₹35,000 · affordable EMI ≈ ₹35,000 · affordable loan ≈ ₹41,84,400.21.
Takeaway: FOIR room is ₹50,000 (50% of 1,00,000) minus ₹15,000 = ₹35,000. Existing EMIs cut comfort headroom even when income looks strong.
Example 3: starter salary, short tenure
Situation: someone on ₹25,000 take-home with a ₹5,000 EMI checks what a 5-year clock can still support at 9% p.a.
Given: load 25k · 5k · 5y: income ₹25,000 · other EMI ₹5,000 · 9% p.a. · 5 years.
Result: available EMI ≈ ₹7,500 · affordable EMI ≈ ₹7,500 · affordable loan ≈ ₹3,61,300.30.
Takeaway: FOIR room is ₹12,500 minus ₹5,000 = ₹7,500. On a short tenure that room only supports a small ticket. Stretching tenure raises estimated loan size but does not create more monthly comfort.
Example 4: high earner, long home-loan clock
Situation: a borrower with ₹1.5 lakh take-home and ₹20,000 other EMIs sketches a 25-year home-loan style budget at 7.5% p.a.
Given: load 1.5L · 20k · 25y: income ₹1,50,000 · other EMI ₹20,000 · 7.5% p.a. · 25 years.
Result: available EMI ≈ ₹55,000 · affordable EMI ≈ ₹55,000 · affordable loan ≈ ₹74,42,578.70.
Takeaway: FOIR room is ₹75,000 minus ₹20,000 = ₹55,000. A long tenure turns that EMI into a large ticket. Ask whether ₹55,000 still feels comfortable after rent and buffer before treating the figure as a shopping budget.
What changes the affordable amount
On the default rate and tenure (7.5% · 10 years), three levers move the sketch as follows.
| Change from defaults | Available / affordable EMI | Affordable loan | Approx. loan delta |
|---|---|---|---|
| Other EMI ₹0 → ₹10,000 | ₹30,000 → ₹20,000 | ₹25,27,342.28 → ₹16,84,894.85 | ≈ −₹8,42,447 |
| Income ₹60,000 → ₹70,000 (other EMI ₹0) | ₹30,000 → ₹35,000 | ₹25,27,342.28 → ₹29,48,565.99 | ≈ +₹4,21,224 |
| Rate 7.5% → 8.5% (same EMI ₹30,000) | ₹30,000 (unchanged) | ₹25,27,342.28 → ₹24,19,634.09 | ≈ −₹1,07,708 |
Cutting other EMIs often frees more affordable loan than a modest income bump, because every rupee of other EMI comes straight out of the 50% room. Raising income by ₹10,000 at 50% FOIR adds ₹5,000 of EMI room when other EMIs stay zero.
Stretching tenure raises ticket size, not comfort
Available EMI is set by income, the fixed 50% FOIR and other EMIs. Tenure does not raise that monthly room. It only changes how large a loan the same EMI can support.
On the defaults (₹60,000 · other EMI ₹0 · 7.5%), a 10-year clock supports about ₹25,27,342.28. The same ₹30,000 EMI over 20 years supports about ₹37,23,963.94. The larger ticket is not more comfort; you still pay ₹30,000 every month, usually for longer and with more total interest.
Rate stress on the same EMI
Rate does not change available EMI on this page. It changes how much principal that EMI can buy. Keeping EMI at ₹30,000 for 10 years, moving from 7.5% to 8.5% p.a. cuts affordable loan from ₹25,27,342.28 to ₹24,19,634.09 (about ₹1.08 lakh less).
On floating loans, stress the rate upward by about 0.5–1% before you treat a ticket as comfortable. A budget that only works at today’s quote can feel tight after a reset.
Common mistakes
- Treating the 50% FOIR sketch as a comfort recommendation instead of leaving a buffer.
- Entering CTC or gross pay instead of take-home income.
- Leaving out other EMIs that already claim monthly cash.
- Confusing this page with eligibility (qualify / capacity ceiling) or with EMI tools (instalment from a known principal).
- Stretching tenure to inflate ticket size and calling that “more affordable.”
- Reading the result as bank approval.
Tips before you lock a shopping budget
Start with honest take-home and a full list of other EMIs. If the affordable loan looks large, stress other EMIs upward and rate upward by about 0.5–1%, then ask whether the EMI still leaves rent and living costs intact.
Prefer a smaller ticket you can pay through a weak month over the largest number the 50% sketch prints. If eligibility already showed a high ceiling, use this page to cut toward comfort, not to stretch toward that ceiling.
Next steps after this estimate
If you still need a FOIR capacity ceiling view, open the loan eligibility calculator. Once you have a ticket size, run the EMI calculator, or the product pages for home loan EMI and personal loan EMI.
Confirm take-home with the salary calculator if payroll deductions are unclear. For the instalment identity behind the PV step, see how EMI is calculated.
Important notes
Methodology: FOIR capacity at a fixed 50% of monthly income, minus other monthly EMIs, floored at 0. Affordable loan is the present value of that available EMI over tenure at monthly rate = annual % p.a. ÷ 12 ÷ 100, with months = years × 12. Money figures follow the page rounding (round to 2 decimal places, same as the runtime roundMoney path). Comfort framing on this page; the 50% share is a capacity-style sketch, not a lifestyle target.
Included: Take-home income, other EMIs, rate and tenure you enter; FOIR fixed at 50% in this tool.
Excluded by default: Rent and living-cost lines as inputs, credit score outcomes, employer-category multipliers, LTV / collateral caps, processing fees, insurance, GST on charges, floating resets, moratorium interest and lender-specific FOIR bands other than this 50% sketch.
Results are indicative comfort estimates for education and comparison, not a loan offer, approval or financial advice. Confirm any figure with the lender’s sanction letter and product rules. Estimate ≠ approval.
Last reviewed: July 2026. Re-verify worked examples whenever defaults or rounding change.
FAQs
No. Eligibility estimates FOIR capacity: how much you might qualify for under a 50% income rule after obligations. Affordability asks whether borrowing near that size still fits after rent and a buffer. Capacity and comfort diverge often. Use loan eligibility for the qualify question, this page for should-I-borrow comfort.
FOIR (Fixed Obligation to Income Ratio) is fixed at 50% in the runtime. Available EMI = (income × 50%) − other EMIs, floored at 0. There is no FOIR slider. That 50% is a capacity-style share for the sketch, not a comfort recommendation to spend half of take-home on EMI.
No. FOIR is fixed at 50% on this tool. For a more conservative comfort sketch, raise other EMIs, lower the income you enter or simply choose a smaller loan than the result shows.
Enter monthly take-home (in-hand) income after typical payroll deductions. CTC overstates what you can pay. Use the salary calculator if you need to convert CTC to a realistic in-hand figure first.
Include running loan EMIs and similar fixed monthly debt payments. Do not put rent, groceries or school fees in this field; keep those in mind as a buffer outside the 50% sketch when you judge comfort.
Affordable loan is the present value of available EMI over the tenure at the monthly rate (annual % p.a. ÷ 12 ÷ 100). Same reducing-balance identity used for EMI sketches; see how EMI is calculated.
It usually raises estimated loan size for the same available EMI, because more months of payments support a larger present value. Monthly EMI room does not rise when only tenure changes. A larger ticket on a longer clock is not the same as more comfort.
On the page defaults (₹60,000 income · 7.5% · 10 years), raising other EMIs from ₹0 to ₹10,000 cuts available EMI from ₹30,000 to ₹20,000 and affordable loan from ₹25,27,342.28 to ₹16,84,894.85 (about ₹8.42 lakh less). Every rupee of other EMI comes straight out of the 50% room.
Available EMI stays the same if income and other EMIs do not change. Higher rate lowers the loan that EMI can support. On the defaults, moving from 7.5% to 8.5% at ₹30,000 EMI for 10 years cuts affordable loan from ₹25,27,342.28 to ₹24,19,634.09.
Lenders apply their own FOIR bands, credit score rules, fees and (for secured loans) LTV limits. This sketch ignores those. Treat the result as a comfort planning number, not a sanction.
An EMI calculator starts from a known principal and returns the instalment. This page starts from income and other EMIs and estimates affordable EMI and loan size. Use the EMI calculator once you have a ticket.
Not as a lifestyle rule. This page uses 50% only as a FOIR-style capacity sketch. After rent, living costs and a buffer, many households need a lower EMI share to stay comfortable through a weak month or a rate rise.
Other EMIs are at or above 50% of the income you entered, so room is exhausted under this sketch. Affordable loan floors at zero until you raise income, lower other EMIs or both.
Compare it with capacity on the eligibility calculator, then model the instalment on the EMI, home loan EMI or personal loan EMI tools. Confirm take-home with the salary calculator if needed.