Loan Affordability Calculator
Find the loan amount you can comfortably afford based on your income and desired EMI-to-income ratio.
Loan eligibility and loan affordability are two different things. A bank may tell you that you qualify for a ₹60 lakh loan, but whether you can comfortably repay it depends on your lifestyle, savings goals, and financial cushion. This calculator helps you work out the loan amount that fits within your comfortable EMI budget — so you borrow what you can genuinely afford, not just the maximum the bank will give you. This is especially important for long-tenure loans like home loans where you are committed for 15–25 years.
📋 How to Use This Calculator
Enter your gross monthly income. Set the EMI percentage you are comfortable dedicating to loan repayment — financial advisors typically suggest 25–35% for home loans and not more than 40% total for all EMIs. Enter your existing monthly EMI obligations. Enter the expected interest rate and desired tenure. The calculator shows your available EMI budget for the new loan, the maximum loan amount you can comfortably afford, and the total interest cost over the tenure.
💡 Key Facts & Information
A useful rule of thumb is the 28/36 rule (popular in the US but applicable globally): spend no more than 28% of gross income on housing costs and no more than 36% on total debt. Indian financial planners often suggest 25–30% on home loan EMI and maintaining total debt below 40% of income. The difference from eligibility: eligibility is the bank's maximum, affordability is your sustainable maximum. Buying at the eligibility limit leaves no room for emergencies, investment, or lifestyle. Build a 6-month EMI emergency fund before taking a large loan.