Worked example
Example with the default numbers — change them above.
Monthly take-home income: ₹1,00,000 · Existing EMIs every month: ₹10,000 · Share of income EMIs may take: 50% · Home loan rate (per year): 8.5% · Loan tenure: 20 yrs · Down payment (share of price): 20%
With ₹1,00,000 a month and ₹10,000 of existing EMIs, you could borrow up to ₹46.09 L at 8.5% for 20 years, which supports a property of about ₹57.62 L with ₹11.52 L down.
| Maximum home loan | ₹46.09 L · 20 years at 8.5% |
|---|---|
| Property price you can target | ₹57.62 L · with a 20% down payment |
| EMI room for the new loan | ₹40,000 · ₹50,000 limit minus ₹10,000 existing |
| Down payment needed | ₹11.52 L · from your own savings |
How the Home Loan Affordability Calculator works
- Your monthly income is multiplied by the share of income that EMIs may take (the EMI-to-income limit, often called FOIR).
- Your existing EMIs are subtracted. What is left is the EMI room for the new home loan.
- That EMI is turned back into a loan amount with the EMI formula run in reverse, for your rate and tenure.
- The loan is then divided by the share of the price a lender finances (100% minus your down payment) to get the property price, and checked against RBI's loan-to-value limits.
- The tenure chart shows how the loan you qualify for grows with a longer tenure, and how little each extra year adds after 20 years.
Affordability formulas
EMI room = income × EMI share − existing EMIs
Maximum loan = EMI room × (1 − (1 + r)^−n) ÷ r
Property price = maximum loan ÷ (1 − down payment share)
r = yearly rate ÷ 12 ÷ 100, n = tenure in monthsAssumptions and limits
- The share of income allowed for EMIs is a simple ratio you choose. Lenders set their own limits and also check credit score, age, job stability and the property.
- Income is take-home pay. Add a co-applicant's income yourself if you borrow together.
- The rate is fixed over the tenure. A floating-rate loan changes with the market.
- RBI limits a housing loan to 90% of the property value up to ₹30 lakh, 80% up to ₹75 lakh and 75% above that; the page warns when your down payment is below the floor for the loan size.
- The property price covers the loan plus down payment only. Stamp duty, registration, brokerage and interiors are extra, and banks may not count stamp duty and registration in the value they lend against.
- The maximum is a ceiling, not a target. Borrowing less leaves room for other goals and rate rises.
Frequently asked questions
How much home loan can I get on my salary?
It depends on your income, existing EMIs, the rate and the tenure. With ₹1 lakh a month, ₹10,000 of existing EMIs, a 50% EMI limit, 8.5% and 20 years, the EMI room is ₹40,000, which supports a loan of about ₹46.09 lakh and a property near ₹57.6 lakh with 20% down.
What is FOIR for a home loan?
FOIR (Fixed Obligation to Income Ratio) is the share of your monthly income that goes to fixed payments such as EMIs. Lenders commonly allow roughly 40% to 60%, with higher limits at higher incomes, though policies differ. The calculator lets you set this share so you can see how the loan changes at a stricter or looser limit.
Does a longer tenure increase my home loan eligibility?
Yes, because the same EMI supports a bigger loan over more years, but the gain slows down: stretching from 20 to 30 years adds far less than going from 10 to 20. A longer tenure also raises the total interest a lot, so use it only if you need the extra room.
How much down payment do I need for a home loan?
RBI caps how much of the property value a bank may lend: up to 90% for loans up to ₹30 lakh, 80% for loans above ₹30 lakh and up to ₹75 lakh, and 75% above ₹75 lakh. So you need at least 10%, 20% or 25% down, and a lender can ask for more. A larger down payment lowers the loan, the EMI and the interest. Keep money aside for stamp duty and registration too, which banks do not finance.
Can a co-applicant increase my home loan eligibility?
Usually yes. Lenders can add a co-applicant's income, such as a spouse or parent, to the eligible income, which raises the EMI room and the loan you can get. Both applicants are then responsible for repayment and both credit histories are checked. Enter the combined take-home income in the calculator to see the effect.
Should I borrow the maximum loan I qualify for?
The maximum is what a lender might sanction, not what is comfortable. Floating rates can rise, and other goals such as emergency savings, children's education and retirement also need money. Many people borrow well below the ceiling. Try a lower EMI share in the calculator to see a more conservative loan.
Sources
- RBI (Commercial Banks – Credit Facilities) Directions, 2025 – loan-to-value limits on housing loans
- RBI (Pre-payment Charges on Loans) Directions, 2025 – no charges on floating-rate loans to individuals sanctioned or renewed from 1 Jan 2026
- RBI: reset of floating interest rate on EMI-based personal loans (your choice of higher EMI or longer tenure)
Logic and rates last verified on .
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