Your Financial Profile
About this calculator
Before you look at flats or cars, it helps to know how much loan you can realistically carry. The Loan Affordability Calculator turns your income and existing obligations into a maximum EMI and a maximum loan amount, using the rule most lenders follow: total EMIs should stay within about 40% of your net income.
Enter your monthly net income, your current EMIs, the interest rate you expect and the tenure you want. The tool takes the part of your income left after existing EMIs, applies the 40% limit to get the largest new EMI you can handle, and then works backwards through the EMI formula to the loan that EMI would repay. Results update as soon as the page loads, and again when you change a field.
How to use it
- Enter your Monthly Net Income, your in-hand pay.
- Enter your Existing Monthly EMIs, including credit card minimums.
- Enter the Expected Interest Rate.
- Enter the Desired Tenure in years.
- Read the maximum affordable EMI and the maximum loan. Try a longer tenure to see how it raises the loan you can service.
Tips and common mistakes
- Lenders look at FOIR (fixed obligations to income ratio). Paying down small loans before applying raises your eligibility.
- The 40% rule is a guide. If you have dependents or irregular income, stay below it.
- Keep a deposit ready. Home loans rarely cover the full price, so affordability is the loan plus your down payment.
- Eligibility is not the same as affordability: banks may approve more than you can comfortably repay.
Frequently asked questions
How much loan can I afford?
A common rule is to keep total EMIs under 40% of net monthly income. The calculator applies it to your income after existing EMIs.
What is the difference between affordability and eligibility?
Affordability is what you can comfortably repay. Eligibility is what a lender will sanction, which can be higher. See the Loan Eligibility Calculator for the lender's view.
Does a longer tenure make me eligible for more?
Yes. A longer tenure lowers the EMI per rupee borrowed, so the same EMI supports a larger loan, but it increases total interest.
Should I include credit card payments?
Include the minimum monthly payments you owe on credit cards and any other loans.
What interest rate should I use?
Use the rate you have been quoted. If you have none, use the current market rate for the loan type plus a small buffer.
Does this include the down payment?
No. The result is the maximum loan, so your budget for a property or vehicle is the loan plus your savings for the down payment.