House Affordability Calculator
Estimate how much home loan and property you can afford.
Last updated: Aug 3, 2026
Disclaimer: Results here are estimates for general understanding only and are not financial, tax, investment or legal advice. Figures assume constant rates and inputs, and may differ from your bank, lender or tax department calculations. Always verify with official sources or a qualified professional before making any financial decision.
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Affordable Home Loan
$$ \text{Max EMI} = \text{Income} \times \text{FOIR} - \text{Existing EMIs} $$
Step 1
$$ \text{Max EMI} = \text{monthly income} \times 0.4 \text{ to } 0.5 $$
Banks typically allow 40–50% of income for all EMIs (FOIR).
Step 2
$$ \text{Available EMI} = \text{Max EMI} - \text{existing EMIs} $$
Subtract current loan obligations.
Step 3
$$ \text{Loan} = \text{EMI} \times \frac{(1+r)^n - 1}{r(1+r)^n} $$
Reverse EMI formula to find maximum principal.
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About House Affordability Calculator
Banks in India use Fixed Obligation to Income Ratio (FOIR) to decide how much home loan they will sanction. Typically 40–50% of your monthly net income can go toward all loan EMIs combined. This calculator estimates the maximum EMI you can service, converts it into a loan amount at the expected interest rate and tenure, then adds your available down payment to show the property price you can target.
Actual sanction depends on credit score, employment stability, employer category and property valuation. Use this as a realistic starting point before talking to lenders.
Practical Tips (India)
Tip 1: Budget for stamp duty (5–7% in most states), registration, GST and interior costs on top of the property price.
Tip 2: A credit score above 750 and a low existing debt load unlock lower rates and higher FOIR approvals.
Tip 3: Keep a 20–25% down payment ready to avoid higher LTV rates and reduce interest over the loan life.
Frequently Asked Questions
What FOIR do Indian banks use?
Most banks keep FOIR between 40% and 50% for salaried applicants. Higher FOIR may be allowed for high-income or government employees.
Does higher tenure increase loan amount?
Yes. Longer tenure lowers EMI for the same loan, so the same EMI capacity supports a larger principal. It also increases total interest paid.
Should I include bonus or variable income?
Banks usually consider only fixed salary components. Some may take a percentage of variable pay. Use conservative numbers.
What if I have other loans?
Enter the total of all existing EMIs. They reduce the EMI capacity available for the new home loan.
Is the result a guarantee of loan approval?
No. It is an estimate based on common FOIR practice. Final approval depends on the bank’s underwriting, credit score and property documents.