Loan Affordability Calculator
Find out how much loan you can afford based on your income.
Results
Maximum affordable EMI (40% rule)
₹40,000
Indicative loan amount
₹46.09 L
Max property value
₹56.09 L
Affordability range
Safe (30% of income)
EMI
₹30,000
Loan
₹34.57 L
Recommended (40% of income)
EMI
₹40,000
Loan
₹46.09 L
Stretch (50% of income)
EMI
₹50,000
Loan
₹57.62 L
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How much home loan can you afford?
Banks in India typically use the 40% rule — your total EMIs (including the new loan) should not exceed 40% of your monthly take-home income. This is the Fixed Obligation to Income Ratio (FOIR) that determines your loan eligibility. Some banks may allow up to 50% for higher-income borrowers, but this stretches your budget thin.
This calculator shows you three affordability bands. The safe zone (30% of income) gives you ample room for other expenses and savings. The recommended zone (40%) is what most banks use as a standard limit. The stretch zone (50%) shows the absolute maximum, but leaves little room for emergencies or lifestyle spending.
Remember to account for additional costs like registration fees (5-7% of property value), furnishing, and maintenance charges when planning your home purchase. Your down payment also affects how much you need to borrow — a larger down payment means a smaller loan and lower EMIs.