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Home Affordability Calculator

Real Estate

Before you go house-hunting, find out the realistic loan and property price your income can comfortably support.

In short: The Home Affordability Calculator is a free online tool that lets you find out how large a home loan and property you can afford on your income — instantly, with charts, a worked example and the exact formula.

Your inputs

/month
₹1,00,000
₹15K₹50L

Take-home income after taxes and deductions.

/month
₹10,000
₹0₹20L

Total of your current loan EMIs.

% p.a.
520
yrs
130

Max home loan

₹34,56,925

Max monthly EMI

₹30,000

40% of income − existing EMIs

Property budget

₹43,21,156

With a 20% down payment

Affordable loan by EMI ceiling

How much you could borrow at different shares of income going to EMIs.

Affordability scenarios

Affordability scenarios
ScenarioMax EMIMax loanProperty budget
Conservative (30%)₹20,000₹23,04,617₹28,80,771
Standard (40%)₹30,000₹34,56,925₹43,21,156
Aggressive (50%)₹40,000₹46,09,234₹57,61,542

Maximum EMI, loan and property price at different EMI-to-income ratios.

How the Home Affordability Calculator works

Formula

Max loan = EMI × ((1 + r)ⁿ − 1) / (r × (1 + r)ⁿ)
EMI
Max affordable EMI = 40% of income − existing EMIs
r
Monthly interest rate (annual ÷ 12 ÷ 100)
n
Loan tenure in months (years × 12)

Step-by-step calculation

Worked with the default values.

  1. 1

    Max EMI (40% rule)

    ₹1,00,000 × 40% − ₹10,000

    = ₹30,000

  2. 2

    Monthly rate (r)

    8.5% ÷ 12 ÷ 100

    = 0.00708

  3. 3

    Max loan

    EMI × ((1+r)ⁿ − 1) / (r × (1+r)ⁿ)

    = ₹34,56,925

  4. 4

    Down payment (20%)

    ₹43,21,156 × 20%

    = ₹8,64,231

How it works

  • Lenders cap your total EMIs at roughly 40% of net monthly income — the FOIR (Fixed Obligation to Income Ratio).
  • The affordable EMI is reverse-engineered through the EMI formula to give the maximum loan principal.
  • Adding a down payment (here 20%) on top of the loan gives the full property price you can target.

Examples

₹1,00,000/month income, ₹10,000 existing EMIs, 8.5% for 20 years

Supports an EMI of ₹30,000, a loan of about ₹34.6 lakh and a ₹43 lakh property with 20% down.

Understanding the Home Affordability Calculator

How much home can you really afford?

It is easy to fall for a property beyond your means. This calculator works backwards from your income to the largest loan and property price you can comfortably service, using the same yardstick lenders apply — so you house-hunt with a realistic number in hand.

The 40% rule (FOIR)

Lenders assess affordability through FOIR — the Fixed Obligation to Income Ratio. As a rule of thumb, your total EMIs, including the new home loan, should stay under about 40% of your net monthly income. So on a ₹1,00,000 monthly income with ₹10,000 of existing EMIs, the affordable home-loan EMI is roughly ₹30,000 (40% of income minus what you already pay).

That affordable EMI is then run through the EMI formula in reverse to find the maximum loan principal your income supports at the chosen rate and tenure.

From loan to property budget

A home loan rarely funds the full property. Lenders typically finance up to 80% of the value, so you arrange the remaining 20% as a down payment. This calculator adds that down payment on top of the loan to show the full property price you can target. Remember to also set aside:

  • Stamp duty and registration — usually 5-8% of the property value.
  • Processing fee, legal and technical charges — around 1% of the loan.
  • GST on under-construction homes, plus initial maintenance deposits.

Levers to stretch your budget wisely

Several factors move your affordability:

  • Interest rate — a lower rate (helped by a CIBIL score above 750) raises the loan for the same EMI.
  • Tenure — a longer term lowers the EMI and boosts eligibility, but increases total interest.
  • Existing EMIs — clearing small loans and card dues frees up EMI capacity immediately.
  • Co-applicant — pooling a spouse's or parent's income lifts the eligible amount.

Use these levers to qualify comfortably, but keep your actual EMI toward the lower end of what you can afford. A cushion below the 40% ceiling protects your budget against rate hikes, job changes and emergencies.

Pros

  • Sets a realistic budget before house-hunting, avoiding emotional over-borrowing.
  • Uses the same 40% FOIR rule lenders apply, so results mirror likely eligibility.
  • Shows the property price you can target once a 20% down payment is added.
  • Helps you plan the down payment and closing costs well in advance.
  • Lets you test how rate, tenure and existing EMIs each move your budget.

Cons

  • Uses a standard 40% FOIR — your lender may apply a stricter or looser cap.
  • Ignores registration, stamp duty and other closing costs that reduce your true budget.
  • Does not factor in future rate hikes on a floating-rate loan.
  • A high eligibility figure can tempt you to stretch beyond a comfortable EMI.

Tips

  • 1Aim to keep total EMIs below 35% of income for a comfort margin, not the full 40%.
  • 2Clear small existing loans and card dues first to free up your EMI capacity.
  • 3Build the down payment plus 8-10% for stamp duty and registration before you commit.
  • 4Improve your credit score above 750 to unlock the lowest rate and highest eligibility.
  • 5Add an earning co-applicant to raise the loan amount and potentially lower the rate.

Frequently asked questions

Everything you need to know about the Home Affordability Calculator.

What percentage of income should go to EMIs?
Keep total EMIs under 40% of your net monthly income. Lenders use this FOIR limit for eligibility, and staying below it protects your budget against rate hikes and emergencies.
How much down payment do I need for a home?
Lenders typically finance up to 80% of the property value, so plan for at least a 20% down payment plus registration and stamp-duty costs, which add another 5-8%.
Can I increase my home loan eligibility?
Yes — clear existing loans, add a co-applicant with income, choose a longer tenure, or improve your credit score. Each raises the affordable EMI and hence the loan amount.
What is FOIR and why does it matter?
FOIR (Fixed Obligation to Income Ratio) is the share of your net monthly income already committed to EMIs and fixed obligations. Lenders usually want your total EMIs, including the new home loan, to stay under about 40-50% of income. A lower FOIR means higher eligibility and a better chance of approval.
How does my credit score affect affordability?
A CIBIL score above 750 gets you the lowest interest rate, which directly lifts how much you can borrow for the same EMI. A weaker score means a higher rate — shrinking your eligible loan — or outright rejection. Improving your score before applying can add lakhs to your budget.
Should I choose the longest tenure to afford more?
A longer tenure lowers the EMI and raises eligibility, but you pay far more total interest. Use a long tenure to qualify comfortably, then prepay whenever you can to cut the interest cost. Also note lenders cap tenure by your age at loan maturity, usually 60-70.
What costs come on top of the down payment?
Budget for stamp duty and registration (typically 5-8% of property value), a processing fee (up to about 1% of the loan), GST on under-construction property, brokerage, legal charges and initial society or maintenance deposits. These are usually not funded by the loan.
Does a co-applicant boost my eligibility?
Yes. Adding an earning co-applicant — such as a spouse or parent — pools both incomes, raising the affordable EMI and the loan amount. A co-applicant who is a woman may also access marginally lower interest rates and stamp-duty concessions in some states.

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