Loan Affordability Calculator
Loan Affordability Calculator
How much can you borrow, and what can you buy with it? Start from the EMI you can pay — or a share of your income you choose — and see the loan it repays and the price your down payment then supports.
Affordable loan and price
An EMI of $25,000 a month at 9% for 20 years, with a 20% down payment
The EMI formula run backwards, then the price
- EMI
- the monthly instalment you can pay: an amount you enter, or income × your share − existing EMIs
- r
- the monthly rate: annual rate ÷ 12 ÷ 100 (reducing balance)
- n
- the number of monthly instalments: years × 12
- d
- the down payment as a share of the price. The loan is the rest: 1 − d of the price.
Worked example
An EMI of $25,000 a month at 9% for 20 years, with a 20% down payment
r = 9 ÷ 1200 = 0.0075; n = 240; (1.0075)−240 = 0.1664
Loan = 25,000 × (1 − 0.1664) ÷ 0.0075 = $27,78,624
Price = 27,78,624 ÷ (1 − 0.20) = $34,73,280; down payment $6,94,656
Interest over 20 years: $32,21,376
At 10% instead of 9%: loan $25,90,615, price $32,38,269
Loan a monthly EMI repays over 20 years, by rate
| Rate | EMI 15,000 | EMI 25,000 | EMI 40,000 |
|---|---|---|---|
| 8% | $17,93,314 | $29,88,857 | $47,82,172 |
| 9% | $16,67,174 | $27,78,624 | $44,45,798 |
| 10% | $15,54,369 | $25,90,615 | $41,44,985 |
| 11% | $14,53,223 | $24,22,038 | $38,75,262 |
Loan a 25,000 EMI repays at 9%, by tenure
| Tenure | Loan | Total interest |
|---|---|---|
| 10 years | $19,73,542 | $10,26,458 |
| 15 years | $24,64,835 | $20,35,165 |
| 20 years | $27,78,624 | $32,21,376 |
| 25 years | $29,79,041 | $45,20,959 |
| 30 years | $31,07,047 | $58,92,953 |
Affordability starts from the EMI
The question “how much loan can I afford?” has an exact answer once you decide the instalment. The loan is the present value of that EMI over the tenure at the loan’s rate — the EMI calculator run backwards. An EMI of $25,000 at 9% for 20 years repays $27,78,624. What you can buy is the loan plus your down payment: with 20% down the price is $34,73,280, of which you pay $6,94,656 yourself. The same works for a car, where the car loan EMI calculator takes it from there.
Choosing the EMI is the real decision. If you work from income, the share is yours to choose: what is left after rent or maintenance, school fees, insurance premiums, saving and an emergency buffer. Lenders set their own limit on how much of your income all EMIs may take — often called FOIR — and it varies by lender and income, so this page does not print one. The home loan eligibility calculator does the same inversion with the EMIs you already pay built in and follows the loan’s balance through the tenure; this page goes on to the price, which is the number you shop with. The debt-to-income calculator shows how your total EMIs compare with income.
Three things move the answer more than people expect. The rate: one point higher, and the same EMI repays $1,88,008 less. The tenure: stretching from 20 to 30 years adds only 12% to the loan while the interest rises from $32,21,376 to $58,92,953. And the cash beyond the down payment: stamp duty, registration and fittings on a home, registration and insurance on a car. The down payment calculator adds those up and plans the saving. For an Indian home loan, RBI also limits the loan to a share of the property’s cost that falls as the loan gets larger (90%, 80% or 75%), so a small down payment may not be allowed; the loan-to-value calculator checks it.
On a floating-rate loan the rate will move, and the EMI with it or the tenure instead. A figure that only just fits today leaves no room for that. Many people borrow less than the maximum for that reason. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How much loan can I afford on my EMI?
Loan = EMI × [1 − (1 + r)−n] ÷ r, with r the monthly rate and n the months. $25,000 a month at 9% for 20 years repays about $27,78,624.
How is this different from the home loan eligibility calculator?
Both invert the EMI formula. The eligibility page builds your existing EMIs into the sum and charts the loan’s balance; this one adds the down payment to show the price you can afford, and works for any loan.
What share of my income should go to EMIs?
There is no single right figure. Lenders apply their own limits, which vary; your own budget after essentials and saving is the better guide. Try more than one share.
Does the price include stamp duty and registration?
No. The price is loan plus down payment. One-off costs are paid on top, in cash; the down payment calculator adds them.
Related calculators
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, its schedule and its inverse follow.
- Reserve Bank of India. Key Facts Statement (KFS) for Loans & Advances. RBI/2024-25/18, DOR.STR.REC.13/13.03.00/2024-25, 15 April 2024: lenders must give a KFS with the annual percentage rate, all charges and the repayment schedule for retail and MSME term loans.
- Reserve Bank of India. Master Circular – Housing Finance. RBI/2025-26/16, DOR.CRE.REC.No.12/08.12.001/2025-26, 1 April 2025 (banks), since consolidated into the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025, 28 November 2025. Individual housing loans: LTV not above 90% up to ₹30 lakh, 80% above ₹30 lakh to ₹75 lakh, 75% above ₹75 lakh; stamp duty, registration and other documentation charges excluded from the cost of the house, except where that cost does not exceed ₹10 lakh.