Loan Affordability Calculator
Find the maximum loan you can afford based on your income.
Assumptions used in this calculation
- Income basis: Monthly income is treated as the income available for EMI budgeting, enter your net take-home pay if you want a more conservative affordability estimate.
- EMI formula: The maximum loan amount is derived using the standard reducing-balance EMI formula at the interest rate and tenure you enter, the same method used by the EMI calculator.
About this calculator
Before shopping for a home or car loan, the more useful question isn't 'what EMI can I technically pay' but 'what loan amount keeps my total debt payments at a sustainable share of income,' and that requires working the EMI formula backward from an affordable monthly payment rather than forward from a loan amount you already have in mind. This calculator starts from your monthly income, subtracts existing loan or credit obligations, and applies your target EMI-to-income ratio to find the maximum EMI you can safely take on, then inverts the standard reducing-balance EMI formula at your expected interest rate and tenure to find the corresponding maximum loan amount. That gives you a realistic borrowing ceiling to shop within before you fall in love with a property or vehicle that's actually outside your budget, rather than finding out only after applying and getting your loan amount reduced by the lender.
Worked example
₹80,000 income, no existing EMIs, 40% ratio, 9% rate, 20-year tenure
Result: Maximum loan ≈ ₹35,58,000
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