Home Loan Eligibility Calculator
Calculate the maximum home loan amount you're likely eligible for, based on income, existing EMIs, interest rate, tenure, and EMI-to-income ratio.
Monthly Income (net)
₹
Existing Monthly EMIs
₹
Max EMI-to-Income Ratio (%)
%
Interest Rate (% p.a.)
%
Loan Tenure (Years)
Yr
Eligible Home Loan Amount
₹ 46,09,234
Max New EMI
₹ 40,000
Tenure
20 Yr
How home loan eligibility is calculated
Lenders decide how large a home loan to offer you primarily by capping your total EMIs (existing plus the new home loan) at a fixed percentage of your monthly income — commonly 40-50%, called the Fixed-Obligation-to-Income Ratio (FOIR). This calculator works backwards from that cap: it finds the maximum new EMI you could take on, then converts that EMI into a loan amount at your expected interest rate and tenure.
Formula
Eligible Loan = Max EMI × [(1+R)^N − 1] ÷ [R × (1+R)^N]
Where R is the monthly interest rate (annual rate ÷ 12 ÷ 100) and N is the tenure in months — this is the EMI formula solved for loan amount instead of EMI.
Example
With a monthly income of ₹1,00,000, existing EMIs of ₹10,000, a 50% max EMI-to-income ratio, 8.5% interest, and a 20-year tenure: the max new EMI works out to ₹40,000/month, giving an eligible home loan of roughly ₹46.6 lakh.
Common Use Cases
- Getting a rough idea of your home loan budget before house-hunting.
- Seeing how paying off an existing loan or credit card would raise your eligibility.
- Comparing eligible loan amounts across different tenures or interest rates.
FAQs
What EMI-to-income ratio do banks actually use?
It varies by lender and your income level, but 40-50% of gross monthly income (across all EMIs combined, including the new home loan) is a common range. Lower-income borrowers are often held to a stricter cap than higher-income borrowers.
Does a longer tenure increase my eligibility?
Yes — spreading the same loan over more months lowers the EMI, which lets you qualify for a larger loan amount within the same EMI cap. The tradeoff is more total interest paid over the life of the loan.
Is this the same figure a bank will approve?
No — this is an estimate based on income and EMI ratio alone. Actual bank approval also weighs your credit score, employment type and stability, the property's value, existing relationship with the bank, and its own internal lending policies, so your actual sanctioned amount may differ.