EMI Affordability Calculator
Find the largest EMI your income can carry, and the loan amount that EMI unlocks.
How much loan can you actually afford?
A lender starts from your net take-home pay, applies a FOIR ceiling, subtracts the EMIs you already pay, then converts what is left into a principal. This page follows exactly that order.
Assumptions used here
Defaults are illustrative: a 50% FOIR ceiling, a 60-year maturity age and a 9% reducing-balance rate. Every one of them is an editable field above, because each lender publishes its own bands and revises them regularly. Verify the current figures with your provider before relying on the result.
Understanding EMI Affordability
What FOIR Actually Measures
FOIR is the share of your income that fixed obligations may consume. Two details trip people up. First, it is applied to net take-home pay, not gross salary, so tax and provident fund are already gone before the ratio bites. Second, credit-card minimum dues and guarantor obligations usually count as fixed obligations even though you may not think of them as EMIs.
Why FOIR Bands Move With Income
- Lower incomes: capped nearer 40%, because the rupees left over after a 50% deduction would not cover living costs
- Middle incomes: the familiar 50% band
- High incomes: stretched to 60–65%, since the residual amount is still large in absolute terms
- Practical effect: the ratio is about the money left behind, not the percentage itself
Tenure Has Diminishing Returns
Eligible loan is the present value of your instalment stream, so it rises with tenure but flattens out. At 9%, a fixed EMI buys roughly 41% more principal over 20 years than over 10, yet only about 12% more over 30 years than over 20. Those last ten years add very little borrowing power while adding a great deal of interest — and the age cap often removes the option anyway.
Income Lenders Count, and Discount
- Rental income: commonly counted at only 70–80% to allow for vacancy periods
- Variable pay: bonus and incentive are often averaged over two or three years, or ignored entirely
- Co-applicant income: clubbed in full when the co-applicant is also a co-owner of the asset
- Cash income: without bank credits or filed returns behind it, most lenders disregard it