What makes this calculator different
Assumes about 45% of monthly income can go to EMI and converts that into a loan amount at your rate and tenure, then adds your down-payment savings to give an indicative property budget. Existing EMIs are not deducted, so reduce the income you enter if you already repay other loans.
Common Questions
Home Affordability Calculator FAQs
Common questions about the Home Affordability Calculator and how to read its results.
Q01
What is loan affordability?
Affordability is the loan amount you can comfortably service. This calculator assumes about 45% of monthly income can go to EMIs; the loan you can afford is the present value of that EMI at your rate and tenure, and adding your down-payment savings gives an indicative property budget.
Q02
How is the maximum affordable EMI calculated?
Banks use Fixed Obligation to Income Ratio (FOIR) — typically 50% for salaried borrowers and 40% for self-employed. This calculator uses a single 45% share of the income you enter and does not deduct existing EMIs, so enter income net of other loan repayments if you have any.
Q03
Why does affordability differ from eligibility?
Eligibility is the bank's ceiling — what they will lend. Affordability is your comfort zone — what you can repay without financial strain. The calculator uses a 45% share of income; some lenders stretch further, but that leaves less room for emergencies.
Q04
Should I borrow the maximum I qualify for?
No. A safer rule of thumb is to keep total EMIs under 40% of net income — leaves room for medical emergencies, education spikes, and rate hikes on floating-rate loans. Lower the income you enter to see a more conservative budget.
Q05
Does the calculator factor in rate hikes?
Not automatically. To stress-test, raise the interest rate by 1–2 percentage points and see how the affordable loan shrinks. Floating-rate home loans can move 100–200 bps in a cycle.
Q06
How do I increase my affordable loan amount?
Three levers: (1) close small unsecured loans (personal, credit-card balances), (2) add a co-applicant whose income gets clubbed, (3) extend tenure to lower the EMI. Change the income and tenure inputs to see the impact in real time.
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