Calculator

Loan Affordability Calculator

Find out the maximum loan you can afford based on your income and existing EMIs. Follow the 40% and 30% rules to borrow safely without financial stress.

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₹15,000₹10,00,000
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₹0₹5,00,000
months
12 months360 months
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5%20%

Max Affordable EMI (40% Rule)

₹22,000

40% of income minus existing EMIs

Max Loan Amount

₹24.45 L

At 9% for 20 years

Recommended Loan (30% Rule)

₹15.56 L

Safer EMI of ₹14,000/mo

EMI-to-Income Ratio

30%

Comfortable zone

Income Allocation

Existing EMIsNew EMIFree Income

How Much Loan Can You Really Afford?

Banks may approve larger loans, but that does not mean you should take them. The 40% rule says your total EMIs (including existing ones) should not exceed 40% of your net monthly income. The safer 30% rule keeps you comfortable with room for savings and emergencies.

The 40% vs 30% Rule

  • 40% rule (maximum): Banks use this as FOIR (Fixed Obligation to Income Ratio). This is the absolute limit.
  • 30% rule (recommended): Keeps 70% of income free for living expenses, savings, and investments.
  • Always build an emergency fund before taking a loan

Tips Before Borrowing

  • Pay off credit card debt and personal loans first - they carry the highest interest
  • A higher down payment means a smaller loan and less interest paid
  • Compare offers from at least 3 lenders before committing
  • Factor in insurance, maintenance, and registration costs for home/car loans