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Home Affordability

Home Affordability Calculator

Find out the maximum property price you can realistically afford based on your income, existing EMIs, down payment savings, and a safe EMI-to-income ratio.

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🏡 Enter Your Financial Details

40%

📊 What You Can Afford

Enter income and savings to see max property price
Max EMI = Income × EMI Ratio − Existing EMIs
Max Loan = Max EMI × [(1+r)^n − 1] / [r × (1+r)^n]
Max Property = Max Loan + Down Payment
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Disclaimer: Results provided by this calculator are for educational and estimation purposes only and do not constitute financial, legal, or real estate advice. Actual property values, stamp duty rates, and loan eligibility depend on lender policies, government notifications, and specific property conditions. Consult a licensed valuer, CA, or lending institution before making real estate decisions.

How Affordability Is Calculated

Lenders (and this calculator) typically cap your total EMI obligations at 40-50% of gross monthly income, factoring in existing EMIs you're already paying. From your maximum allowable new EMI, the calculator works backward using the standard loan formula to find your maximum eligible loan amount, then adds your available down payment to get the maximum property price you can afford.

Worked Example

A ₹1,00,000/month income with ₹10,000 in existing EMIs, ₹10,00,000 available for down payment, at an 8.5% home loan rate over 20 years, capping total EMI at 40% of income: maximum new EMI = ₹30,000/month, maximum eligible loan ≈ ₹34,56,925, so maximum affordable property ≈ ₹44,56,925.

Frequently Asked Questions

This threshold (called the Fixed Obligation to Income Ratio, or FOIR) protects both you and the lender — it ensures you retain enough take-home income for living expenses and other financial goals even after your EMI, reducing default risk. Some lenders allow up to 50-60% for high-income applicants, but staying conservative (30-40%) leaves more room for savings and financial shocks.
Yes, directly — every rupee of down payment reduces the loan amount you need, which reduces your EMI dollar-for-dollar on the principal, freeing up EMI capacity. A larger down payment can meaningfully increase the maximum property price you qualify for, since it stretches your existing EMI budget further.
Generally no — lender eligibility calculations represent a ceiling, not a recommendation. Most financial planners suggest keeping EMI meaningfully below the maximum (closer to 30-35% of income) to preserve room for savings, emergencies, and lifestyle flexibility, rather than borrowing right up to your calculated limit.
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