How much home loan can I get on my salary?

This calculator shows what a given instalment would service, which is the arithmetic part of the answer. The rest is the lender's: they assess credit history, employment, the property and their own income rules, so a sanction can differ from this figure in either direction. Treat it as a range to shop in, not an approval.

What share of income should go to an EMI?

This calculator does not recommend one, because it depends on your other commitments, your dependants and how secure your income is — none of which it knows. What it does show is exactly what each share produces, so you can see the trade-off rather than being handed a rule.

Why does a longer tenure let me borrow more?

Because the instalment is spread over more months, so each rupee borrowed costs less per month. The same ₹50,000 services a considerably larger loan over 30 years than over 10. The interest paid over the life of the loan rises correspondingly, which the tenure scenarios show alongside.

Does this include stamp duty and registration?

No. Those are paid in cash at purchase, so in practice they reduce the down payment available for the property. The property budget shown here is before such costs — subtract your estimate of them from the down payment to see the effect.

Is this the same as loan eligibility?

No, and the difference matters. Eligibility is a lender's decision involving credit assessment and their own policies. This is arithmetic on the numbers you entered. They can differ substantially, which is why the sanction letter is the only binding figure.

Should I borrow the maximum this shows?

That is not something a calculator can answer for you. Borrowing at the top of a budget leaves no room for a rate rise, an income interruption or the costs a property brings after purchase. The share-of-income scenarios are there so you can see what a more conservative choice costs in property budget.

Loan · FINANCIAL TOOLS

Home Loan Affordability Calculator

Work backwards from your income to the loan and property budget an instalment would support.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

The calculation runs in four steps, and the table above shows each of them. Your income is multiplied by the share you are prepared to commit to instalments. Existing commitments come off that. What remains is the instalment available for a new loan. That instalment is then discounted back into a principal.

That last step is the EMI formula run backwards. The EMI calculator takes a principal and produces an instalment; this one takes an instalment and produces a principal. Both use the same engine, so a figure from here fed into the EMI calculator returns the instalment you started with.

More detail

Adding your down payment to the borrowable amount gives a property budget. That is the number worth carrying into a property search, since it is what you could actually put on the table.

The share of income is an input rather than a fixed rule because it is a decision, not a fact. Committing half your income to an instalment is arithmetically possible and may be a poor idea; committing a quarter is more comfortable and buys less. The calculator will compute either.

Once you have a loan amount in mind, the home loan EMI calculator.

To see what paying extra later would save, use the prepayment calculator.

Formula

P = E × (1 − (1 + r)⁻ⁿ) ÷ r, where E = (I × s) − Eₓ

The standard reducing-balance annuity solved for principal instead of payment. r is the annual rate divided by twelve; n is the tenure in months.

P: Loan the instalment would service.
E: Instalment available for the new loan.
I: Monthly take-home income.
s: Share of income committed to all instalments — your assumption, not a lender's rule.
Eₓ: Instalments already being paid each month.
r: Monthly interest rate.
n: Tenure in months.

Worked example

A ₹1,50,000 monthly income with ₹10,000 of existing instalments, committing 40% of income, at an assumed 8.5% over 20 years, with ₹15,00,000 as a down payment.

01Instalment budget40% × ₹1,50,000 = ₹60,000
02Less existing instalments₹60,000 − ₹10,000 = ₹50,000
03Monthly rate8.5% ÷ 12 = 0.7083%
04Loan that ₹50,000 services over 240 monthsAbout ₹57,60,000
05Plus down payment+ ₹15,00,000
06Property budgetAbout ₹72,60,000

Feeding that loan figure into the EMI calculator returns ₹50,000 a month, which confirms the two calculators agree. Raising the tenure or lowering the rate would raise the loan; committing a smaller share of income would lower it.

Important considerations

01
The share of income is your decision, not a standard
Lenders each apply their own limit on instalments as a proportion of income, and those limits differ and change. This calculator therefore treats the share as an input you set. Nothing here should be read as the share you ought to commit — the scenarios exist so you can see what each choice does to the number.
02
A longer tenure buys a bigger loan and costs more interest
Stretching the tenure lowers the instalment per rupee borrowed, so the same budget supports a larger loan. The tenure scenarios show both effects together, because the total interest rises at the same time. Neither figure alone tells the whole story.
03
Buying costs come out of the down payment
Stamp duty, registration and processing fees are paid in cash at purchase. Whatever they come to reduces the down payment available for the property itself, so the property budget here is before those costs rather than after.
04
A floating rate moves the instalment, not the loan
The figure here assumes the rate holds for the tenure. On a floating-rate loan a rise raises the instalment against an income that has not changed, which is worth testing with the rate scenarios before committing near the top of the budget.

Limitations

This is not an eligibility check. Lenders assess credit history, employment stability, the property itself and their own income multiples, none of which this calculator can see. A sanction can be lower or higher than the figure here.
The costs of buying are excluded. Stamp duty, registration and fees are paid from cash, so they reduce the down payment actually available for the property.
The share of income is not advice. A high share is arithmetically valid and may leave too little for everything else, including the savings the property itself will eventually need.

Frequently asked questions

Common questions about the home loan affordability calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

Loan Prepayment CalculatorSee how much extra payment can reduce interest.Loan Balance Transfer CalculatorCompare whether switching lenders saves money.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.