Take-home income per month.
EMIs you already pay each month.
Lenders commonly allow 40–60%; your lender sets this.
Rate quoted by the lender.
Loan tenure.
Quick examples
At 50% of ₹1,00,000 income, 8.5% for 20 years.
What each result means
Affordable EMI
What it is: Income × FOIR − existing EMIs.
Your value: ₹50,000
Room left for a new EMI.
Estimated maximum loan
What it is: Present value of that EMI over the tenure at the rate.
Your value: ₹57,61,542
The headline figure.
Total interest on it
What it is: EMI × months − loan.
Your value: ₹62,38,458
Cost of borrowing the maximum.
Year-by-year breakdown
| Year | EMIs paid (₹) | Principal repaid (₹) | Interest paid (₹) | Balance at year end (₹) |
|---|---|---|---|---|
| 1 | ₹6,00,000 | ₹1,14,668 | ₹4,85,332 | ₹56,46,874 |
| 2 | ₹6,00,000 | ₹1,24,803 | ₹4,75,197 | ₹55,22,071 |
| 3 | ₹6,00,000 | ₹1,35,835 | ₹4,64,165 | ₹53,86,236 |
How to read this: the rows show how the maximum loan would be repaid year by year.
Showing the first 3 of 20 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
This calculator estimates the largest loan whose EMI fits within a share of your income (FOIR), after your existing EMIs, at a given rate and tenure.
What your result means
It is an estimate. Lenders also look at credit score, age, job stability and property value; the actual offer can be lower or higher.
Formula
1. Affordable EMI
Symbols
- FOIR
- Fixed obligation to income ratio
2. Maximum loan
Symbols
- i
- Monthly rate
- n
- Months
Why this formula works
The loan is the present value of all EMIs.
Worked example
EMI ₹50,000, 8.5%, 20 years ≈ ₹57,62,000.
Working for your numbers
- EMI = ₹1,00,000 × 50% − ₹0 = ₹50,000
- i = 8.5 ÷ 1200 = 0.007083, n = 240
- P = ₹50,000 × [1 − (1 + i)^−240] ÷ i = ₹57,61,542
Frequently asked questions
What FOIR do lenders use?
Each lender sets its own, usually between 40% and 60% of net income depending on income level. Use your lender's figure.
When should I talk to a professional instead?
Before a real decision, especially a large or long-term one, speak to a SEBI-registered investment adviser or a qualified professional. This page is educational only.
Symbols and assumptions
- Income
- Net monthly income
- FOIR
- Max EMI share
- i
- Monthly rate
- n
- Months
- The rate stays fixed for the whole tenure.
- EMIs are paid at the end of every month.
- Processing fees, insurance and GST on fees are not included.
- FOIR is your input, not a regulatory limit.
Sources and review
Reviewed 2026-09-29 · Next review 2027-09-29
- Reserve Bank of India — Master Directions & Fair Practices Code for Lenders
- RBI — Key Facts Statement for loans & advances (2024)
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How it works
Uses FOIR (Fixed Obligation to Income Ratio) to estimate the maximum EMI you can afford.
The formula
Eligible EMI = (Income * FOIR) - Existing EMIs- Income
- Net Monthly Income
- FOIR
- Usually 50%
Worked example
₹1 Lakh income with ₹20k existing EMIs can afford ~₹30k new EMI.
Pro tips
- Improve your credit score to increase eligibility.
- Include co-applicant income for higher eligibility.
Common mistakes
- Expecting the exact estimated amount from all lenders.
Go deeper
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.