Home Loan Eligibility Calculator
Home Loan Eligibility Calculator
How large a home loan can you afford? Start from the EMI you are comfortable paying — or a share of your monthly income you choose, less the EMIs you already pay — and see the largest loan that EMI repays at a given rate and tenure.
Affordable loan
Take-home $1,00,000 a month, 40% of it for EMIs, $10,000 already committed, 8.5% for 20 years
The EMI formula, run backwards
- EMI
- the monthly instalment you can pay: income × your chosen share − existing EMIs, or an EMI you enter
- r
- the monthly rate: annual rate ÷ 12 ÷ 100 (reducing balance)
- n
- the number of monthly instalments: years × 12
Worked example
Take-home $1,00,000 a month, 40% of it for EMIs, $10,000 already committed, 8.5% for 20 years
EMI available = 1,00,000 × 0.40 − 10,000 = $30,000
r = 8.5 ÷ 1200 = 0.007083; n = 240; (1 + r)−240 = 0.1838
Loan = 30,000 × (1 − 0.1838) ÷ 0.007083 = $34,56,925
Repaid over 20 years: $72,00,000, of which interest $37,43,075
The same 30,000 EMI at 8.5%, by tenure
| Tenure | Largest loan | Total interest |
|---|---|---|
| 10 years | $24,19,634 | $11,80,366 |
| 15 years | $30,46,491 | $23,53,509 |
| 20 years | $34,56,925 | $37,43,075 |
| 25 years | $37,25,657 | $52,74,343 |
| 30 years | $39,01,609 | $68,98,391 |
The same 30,000 EMI over 20 years, by interest rate
| Rate | Largest loan |
|---|---|
| 7.5% | $37,23,964 |
| 8.5% | $34,56,925 |
| 9.5% | $32,18,431 |
| 10.5% | $30,04,868 |
How to use an eligibility figure
Lenders size a home loan from the instalment you can carry, not from the price of the house. This calculator does the same sum backwards: it takes the EMI you can afford and finds the loan that EMI would repay at the rate and tenure you enter. It is the EMI calculator turned around.
The share of income is your choice, not a rule. Lenders cap the share of take-home pay that all your EMIs together may take (you will see it called FOIR, the fixed obligations to income ratio), and the cap differs between lenders and income levels. The number worth starting from is the one your own budget can bear after rent or maintenance, school fees, insurance and saving — which may be lower than any lender’s limit. That is why you can also enter an EMI directly.
Three things the figure leaves out. Lenders lend only part of the property’s value, so you need a down payment, and stamp duty, registration and fittings on top. On a floating-rate loan the rate can rise; the last line under the result shows how much a one-point rise shrinks the loan the same EMI supports. And a longer tenure raises the loan less than people expect while adding years of interest — the table shows it. Once you have a loan amount, the loan prepayment calculator shows what prepaying it later would save.
The chart follows that loan through the tenure: the balance still owed, and the interest paid so far. The balance falls slowly at first, because the early EMIs are mostly interest. Halfway through the worked example, after 10 of the 20 years, $24,19,634 — about 70% of the loan — is still owed. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How much home loan can I get on my salary?
Decide the EMI you can pay, then Loan = EMI × [1 − (1 + r)−n] ÷ r. A $30,000 EMI at 8.5% over 20 years supports about $34,56,925. The lender’s own assessment may give more or less.
What share of my income should go to EMIs?
There is no single right figure. Lenders set their own caps; what matters for you is what is left after essential spending and saving. Try the calculator at more than one share.
Does a longer tenure let me borrow much more?
Less than you might think. On a $30,000 EMI at 8.5%, 30 years supports about $39,01,609 against $34,56,925 over 20 — but the interest rises from $37,43,075 to $68,98,391.
Why is the bank’s offer different?
Banks also look at credit score, age and retirement date, job stability, the property’s value and their own rate for your profile. This page shows only the arithmetic of the EMI.
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References
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. The present value of an annuity, from which the level-payment loan formula and its inverse follow.
- Reserve Bank of India. Key Facts Statement (KFS) for Loans & Advances. Circular, 15 April 2024.