Find out how much home loan you're eligible for, and what total home value that translates to, based on your income and existing obligations.
Max Affordable EMI = Max Total Obligation − Existing EMIs
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Most home loan eligibility calculators only tell you the loan amount. This one goes a step further and shows the total home value you can realistically target once your down payment is added, so you can shop for property with a clear budget instead of falling in love with a home first and discovering the financing gap later.
FOIR (Fixed Obligation to Income Ratio) is the ceiling banks apply on how much of your income can go toward all EMIs combined. The loan formula above is simply your EMI formula solved in reverse — instead of finding EMI from a known loan amount, it finds the maximum loan amount from your known affordable EMI.
Scenario: ₹1,00,000 monthly income, no existing EMIs, 50% FOIR, 8.5% interest, 20-year tenure, ₹10,00,000 down payment available.
| Monthly Income | Typical FOIR Allowed |
|---|---|
| Up to ₹25,000 | 40-45% |
| ₹25,000 - ₹50,000 | 45-50% |
| ₹50,000 - ₹1,00,000 | 50-55% |
| Above ₹1,00,000 | 55-60% |
These are general industry patterns, not fixed rules — your actual FOIR depends on the specific bank's policy, your credit score, and employment stability.
FOIR stands for Fixed Obligation to Income Ratio, the percentage of your monthly income that banks allow to go toward all fixed debt obligations combined, including your proposed home loan EMI plus any existing loans or credit card minimums. Most Indian lenders cap this between 40% and 60% depending on your income level and the bank's internal policy, with higher incomes sometimes getting a slightly higher allowed FOIR. A lower FOIR used in this calculator gives a more conservative, safer eligibility estimate.
Eligibility is what a bank calculates it will lend you, based purely on your income, existing obligations, and their FOIR policy. Affordability is a broader personal decision that should also weigh in your job stability, other financial goals like retirement or children's education, and how comfortable you genuinely feel with the EMI amount over 15-20 years. Many people are eligible for a larger loan than they should actually take, so use the eligibility figure as a ceiling, not a target.
No, your down payment does not change how much loan you are eligible for; that is determined purely by your income, existing obligations, interest rate, and tenure. What the down payment changes is the total home value you can afford, since it adds directly on top of your loan eligibility. A larger down payment lets you target a more expensive home without needing a larger loan, and it also reduces your EMI burden relative to the home's value.
RBI regulations require banks to cap the Loan-to-Value (LTV) ratio at 90% for loans up to ₹30 lakh, 80% for loans between ₹30 lakh and ₹75 lakh, and 75% for loans above ₹75 lakh. In practice, this means your minimum down payment is typically 10-25% of the property value depending on the loan size, though most buyers put down more than the bare minimum to reduce their EMI and total interest cost.
Yes, applying for a joint home loan with a co-applicant, typically a spouse, combines both incomes for eligibility purposes, which can significantly increase the loan amount you qualify for. Joint applications also come with the added benefit of both applicants being able to separately claim tax deductions on home loan interest and principal repayment, effectively doubling the available tax benefit for a single property, subject to individual eligibility and ownership share.
A strong credit score, generally 750 or above, does not usually increase the loan amount you are eligible for, but it significantly improves the interest rate you are offered, which in turn affects your EMI and total interest cost over the tenure. A lower credit score can sometimes reduce the maximum loan amount a bank is willing to offer, or result in a higher interest rate being applied, effectively lowering the total loan value that fits within your FOIR limit.
Most banks do consider rental income when assessing eligibility, but typically only 50-80% of the declared rental income is counted, since rental income is viewed as less stable than salary. You will usually need to provide a registered rental agreement and bank statements showing the rent credits to have this income considered. Some lenders are more conservative and exclude rental income entirely unless it has a long, well-documented history.
Some banks are willing to exclude an existing EMI from your FOIR calculation if it has fewer than 6-12 months remaining, since the obligation will end well before it meaningfully affects your ability to service the new home loan. This is not standard across all lenders, so it is worth explicitly raising with your loan officer if a large existing EMI is close to completion, as it could noticeably improve your eligibility.
The FOIR concept applies the same way, but self-employed applicants typically have their net monthly income assessed from average earnings over the last 2-3 years of ITRs rather than a fixed salary, and banks often apply a more conservative FOIR for self-employed applicants due to income variability. If your income fluctuates significantly year to year, use a conservative average in this calculator rather than your best year's income to get a realistic estimate.
A longer tenure lowers your EMI for the same loan amount, which means the same maximum affordable EMI supports a larger loan amount when stretched over more years. However, this comes at the cost of paying significantly more total interest over the life of the loan, and most Indian lenders cap home loan tenure at 30 years or until the borrower reaches around age 70, whichever comes first, so tenure extension has practical limits, especially for older applicants.
No, this calculator estimates the property value you can afford based on loan eligibility and down payment alone. Stamp duty and registration charges, which typically range from 5-8% of property value depending on your state, along with brokerage and legal fees, are additional costs you should budget for separately, on top of both your down payment and the affordable home value shown here.
