Home Loan Eligibility Calculator
Before you shortlist a property, it helps to know how large a home loan a lender is likely to approve. This home loan eligibility calculator works backwards from your income and existing EMIs, applying the lender's FOIR limit, to estimate the maximum loan you can service at a given rate and tenure. Enter your monthly income, current obligations and the loan terms to see an indicative eligible amount and the EMI it implies.
Banks cap total EMIs at 40–55% of income.
Eligible Loan Amount
₹46,09,234
Max EMI You Can Afford
₹40,000
About the Home Loan Eligibility Calculator
Home loan eligibility is the largest loan a lender will sanction to you, based mainly on how much of your monthly income they allow you to spend on all EMIs combined. That share is set by the FOIR, or Fixed Obligation to Income Ratio, and the calculator converts the resulting affordable EMI back into a loan amount.
Why it is useful
Knowing your eligibility early stops you from house-hunting above your budget or being surprised by a smaller-than-expected sanction. It also shows the levers you control: reducing existing EMIs, adding a co-applicant, extending the tenure or improving your score can all lift the amount you qualify for.
How the calculation works
First the affordable EMI is found as (monthly income × FOIR) − existing EMIs. That EMI is then converted into a loan using the reverse of the EMI formula: Loan = EMI × ((1 + r)^n − 1) ÷ (r × (1 + r)^n), where r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. A lower FOIR use or fewer existing EMIs raises the eligible loan.
Key inputs explained
- Net monthly income: Your take-home income, sometimes added to a co-applicant to raise eligibility.
- Existing EMIs: Current loan and card EMIs the lender counts against your income first.
- FOIR limit: The share of income allowed for all EMIs, usually 40% to 55%.
- Rate and tenure: The interest rate and repayment period used to size the loan from the EMI.
Example calculation
Inputs
- Net monthly income
- ₹1,00,000
- Existing EMIs
- ₹5,000
- FOIR
- 50%
- Rate and tenure
- 8.5% p.a., 20 years
Calculation breakdown
- Affordable EMI
- (1,00,000 × 50%) − 5,000 = ₹45,000
- Monthly rate (r)
- 8.5 ÷ 12 ÷ 100 ≈ 0.00708
- (1 + r)^n
- (1.00708)^240 ≈ 5.44
- Eligible loan
- 45,000 × (5.44 − 1) ÷ (0.00708 × 5.44)
With ₹45,000 a month available for a home loan EMI, you could service roughly a ₹51.9 lakh loan at 8.5% over 20 years. Closing the ₹5,000 existing EMI would free the full ₹50,000 and lift eligibility to about ₹57.6 lakh.
Benefits
- Set a realistic property budget before you start searching.
- See how existing EMIs shrink the loan you can get.
- Test how a co-applicant or longer tenure raises eligibility.
Limitations
- Eligibility also depends on the property value and the lender LTV cap.
- Credit score, job stability and age can move the final sanction.
- Uses one FOIR figure; each lender applies its own policy and rate.
Tips
- Close or consolidate small loans before applying to lower your obligations.
- Add an earning co-applicant to pool incomes and increase the eligible amount.
- A longer tenure raises eligibility but adds substantially to total interest.
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About this calculator
The Home Loan Eligibility Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.