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Home Loan Affordability Calculator

Find the maximum home loan you are eligible for - using the FOIR method that Indian banks actually apply when sanctioning loans.

Your Financial Profile
How Banks Decide

FOIR - The Key Metric

FOIR Formula

FOIR = (All Monthly EMIs ÷ Net Income) × 100. Banks set a ceiling - typically 40–50% - to ensure you have enough income left for living expenses after all loan repayments.

Add a Co-Applicant

Adding a co-applicant (spouse or earning parent) combines both incomes for FOIR calculation, directly increasing the maximum loan amount - often by 40–80%.

Longer Tenure = Bigger Loan

Extending tenure from 15 to 30 years reduces the EMI on the same loan by ~33%, increasing your eligible loan amount significantly - at the cost of more total interest.

FAQ

Frequently Asked Questions

Banks use the FOIR (Fixed Obligation to Income Ratio) method. FOIR = total monthly EMIs ÷ net income × 100. Banks allow up to 40–50% FOIR, so your maximum new home loan EMI = (income × FOIR) − existing EMIs. The maximum loan is back-calculated from this EMI using the standard EMI formula.

Below 40% is excellent. 40–50% is acceptable to most banks. Above 50% makes approval harder. Salaried applicants can go up to 50–55% at leading banks. Self-employed typically face 40% ceiling. FOIR excludes rent but includes all EMIs - personal loan, car loan, credit card minimums.

On ₹50,000 net income at 50% FOIR, max EMI = ₹25,000. At 9% for 20 years this supports a loan of ~₹27.6 lakh (assuming no existing EMIs). With existing EMIs of ₹5,000, your max new EMI drops to ₹20,000 and the maximum loan to ~₹22 lakh.

Yes - directly. Every existing EMI reduces available FOIR. Paying off smaller loans before applying is a common strategy. If ₹1 lakh income and 50% FOIR allows ₹50,000 total EMIs, an existing ₹15,000 car EMI reduces home loan capacity from ~₹55 lakh to ~₹38 lakh.

1) Add a co-applicant to combine incomes. 2) Clear existing loans. 3) Maintain CIBIL above 750. 4) Opt for longer tenure (30 years). 5) Declare all income sources (rental, bonuses). 6) Choose lenders with higher FOIR allowance - HDFC, SBI and Axis typically allow 50–55%.

LTV (Loan to Value) is the % of property value a bank lends. RBI mandates: up to ₹30L - 90% LTV; ₹30–75L - 80% LTV; above ₹75L - 75% LTV. For a ₹1 crore property the bank lends at most ₹75 lakh; you arrange ₹25 lakh as down payment regardless of your income.