Loan Affordability Calculator
Find out exactly how much the bank will lend you
Your in-hand salary or net business income per month.
Total EMIs you are currently paying (Car, Personal, Credit Cards).
Home Loans: ~8.5% | Car Loans: ~9.5% | Personal Loans: ~14%
How long do you want to take this new loan for?
Total Repayment
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📊 Your Loan Eligibility Breakdown
Your base capacity to repay any debt.
Banks usually do not allow your total EMIs to cross 50% of your net income to ensure you have enough money left to live.
The amount of your income already blocked by other loans.
Max Debt Limit minus Existing EMIs. This is the absolute maximum EMI a bank will approve you for today.
Based on your available EMI, interest rate, and tenure, this is the highest loan amount the bank will sanction.
The total cost of borrowing this maximum eligible loan over the tenure.
Principal + Interest. The total outflow from your bank account over the years.
💡 Smart Loan Eligibility Secrets
1. The 50% FOIR Rule: FOIR stands for Fixed Obligation to Income Ratio. Banks calculate this to ensure you don’t go bankrupt. They assume 50% of your income is for daily living, and a maximum of 50% can go towards EMIs.
2. How to Increase Your Loan Amount: Are you falling short of the required loan amount? You have two choices: Increase your tenure (e.g., from 15 years to 20 years), OR clear your existing small loans (like a car or phone EMI) to free up your “Available EMI”.
3. Add a Co-Applicant: If your individual income isn’t enough to get the required loan, add your working spouse or parent as a co-applicant. The bank will combine both your incomes, instantly doubling your loan eligibility!
4. Credit Score Matters: This calculator assumes you have a good CIBIL score (750+). If your score is low, the bank may restrict your FOIR to 40% instead of 50%, or reject the loan entirely.
⚖️ Loan Affordability Calculator —
Find Your Safe Borrowing Limit
Just because a bank approves you for a ₹1 Crore Home Loan doesn’t mean you can actually afford it. Before you sign 20 years of your life away, learn the brutal math behind the FOIR rule, decode the 50/30/20 budget, and find your true EMI safe zone.
The Illusion of Bank “Approval”
There is a massive difference between what you are Eligible for, and what is actually Affordable. When you apply for a loan, the bank manager looks at your salary and calculates the maximum possible EMI they can squeeze out of you without making you go bankrupt. Their goal is to sell you the biggest loan possible, for the longest tenure possible, so they can earn maximum interest.
But the bank doesn’t know about your personal life. They don’t know that you send ₹15,000 to your parents every month. They don’t know you are planning for a baby next year. They just see a spreadsheet.
If you take a loan based on the bank’s maximum limit, you become “House Poor”. You will have a beautiful house or a luxury car, but zero cash left at the end of the month to go to a restaurant, invest in mutual funds, or handle a medical emergency.
Banks are selling a product; you are buying a 20-year commitment. Your EMI capacity should be decided by your lifestyle, not by the bank’s software. If your EMIs consume more than 50% of your income, you are walking into a financial trap.
The Golden Rule of Banking: FOIR
Banks use a universal formula to calculate your loan eligibility. It is called FOIR (Fixed Obligation to Income Ratio). It is the percentage of your monthly income that goes toward paying debts.
Formula: (Total Monthly EMIs ÷ Net Monthly In-Hand Salary) × 100
Most strict banks set the FOIR limit at 50%. This means if your in-hand salary is ₹1,00,000, all your EMIs combined (Home Loan + Car Loan + Personal Loan) cannot cross ₹50,000. The bank assumes you need the remaining ₹50,000 to survive (food, electricity, school fees).
While the bank allows 50%, financial experts warn that operating at a 50% FOIR is incredibly dangerous. If inflation hits, or interest rates rise (making your EMI expensive), or you lose your job for 2 months, a 50% FOIR will instantly force you to take credit card debt just to buy groceries. Your personal FOIR limit should ideally be capped at 40%.
How to Use the Affordability Calculator?
Our Loan Affordability Calculator reverse-engineers the bank’s formula. Instead of telling you the EMI for a loan, it takes your salary and tells you the Maximum Safe Loan Amount you can take. Here are the inputs:
Net Monthly Income:
Enter your exact “In-Hand” salary that hits your bank account. Do not enter your CTC or Gross Salary. If you earn ₹1.2 Lakhs but ₹20k goes to PF and Tax, enter ₹1 Lakh.
Existing Monthly EMIs:
Are you already paying ₹10,000 for a car loan and ₹5,000 for a phone EMI? Enter ₹15,000 here. This directly eats into your new loan capacity.
Interest Rate & Tenure:
Enter the current market interest rate (e.g., 8.5% for Home Loan) and the years you plan to take to repay it (e.g., 20 Years).
Let’s Look at the Math (Salary = ₹1,00,000)
Let’s assume your In-Hand salary is exactly ₹1,00,000 per month. You want to buy a house, and the Home Loan interest rate is 8.5% for 20 years. The bank uses a 50% FOIR rule (Max total EMI capacity = ₹50,000). Let’s see how your existing debts destroy your home-buying capacity.
| Your Existing Debts | Available EMI for Home Loan | Max Home Loan Affordability |
|---|---|---|
| Zero Debts (₹0) | Full ₹50,000 | ₹57.6 Lakhs |
| Car EMI (₹15,000) | ₹35,000 left | ₹40.3 Lakhs |
| Car + Personal Loan (₹25,000) | ₹25,000 left | ₹28.8 Lakhs |
| Heavy Debt (₹35,000) | Only ₹15,000 left | ₹17.2 Lakhs |
Look at the table! Taking a ₹15,000 EMI for a car sounds normal, but it instantly destroys your Home Loan capacity by ₹17.3 Lakhs! If you plan to buy a house in the next 1-2 years, absolutely DO NOT take any car loans or personal loans today. Clear all existing small debts before applying for a massive mortgage.
The Safe Budgeting Framework: 50/30/20
Before you commit to a loan, you must map it against the famous 50/30/20 budgeting rule. This ensures you never go bankrupt while paying EMIs.
Bank’s Math vs Your Math (A Clash of Interests)
The Borrower’s Reality Check (Before Signing)
Affordability FAQ (12 Critical Questions Answered)
Borrowing money is the biggest financial decision of your life. We have compiled the 12 most critical questions asked by borrowers, answered clearly without the banking jargon.
⚖️ Master Your Limits
Don’t let a bank algorithm decide your lifestyle. Scroll up, use the Loan Affordability Calculator with your exact salary and existing EMIs, and find your financial safe zone before you sign any paperwork.
* The calculations generated by this Loan Affordability Calculator are for educational and estimation purposes only. Banks use complex proprietary algorithms to calculate exact FOIR and eligibility, which may include your employer category, age, CIBIL history, and location. Floating interest rates are subject to market changes (Repo Rate/MCLR) which can alter your future EMIs. Unity Wealth Capital is an educational platform and strongly recommends consulting a certified financial planner before committing to long-term debt.