Home Loan Eligibility Calculator
Estimate the maximum home loan amount you can qualify for based on your monthly income, existing obligations, and loan terms. Banks typically allow 40-50% of your income toward EMIs. Use our mortgage payment calculator to see monthly payments or the home loan EMI calculator for detailed schedules.
How to Calculate Home Loan Eligibility
- Calculate your total monthly income (salary + other regular income).
- Subtract existing EMI obligations (car loan, personal loan, credit card minimums).
- Banks allow 40-50% of income for total EMIs (FOIR - Fixed Obligation to Income Ratio).
- The available EMI capacity determines the maximum loan using the interest rate and tenure.
- Divide the maximum loan by (1 - down payment %) to get the maximum property value.
Formula
Available EMI = (Monthly Income x 0.45) - Existing EMIs
Maximum Loan = Available EMI x [(1+r)^n - 1] / [r x (1+r)^n]
Where:
r = Monthly interest rate (annual rate / 12 / 100)
n = Tenure in months (years x 12)
Maximum Property Value = Maximum Loan / (1 - Down Payment %)
Note: 45% FOIR is used (banks vary between 40-50%)Example
Monthly income of 80,000 with existing EMI of 5,000, at 7.5% for 20 years:
Monthly Income = 80,000
Existing EMIs = 5,000
FOIR = 45%
Available EMI = (80,000 x 0.45) - 5,000 = 36,000 - 5,000 = 31,000
r = 7.5% / 12 = 0.625% = 0.00625
n = 20 x 12 = 240 months
Max Loan = 31,000 x [(1.00625)^240 - 1] / [0.00625 x (1.00625)^240]
= 31,000 x [4.4608 - 1] / [0.00625 x 4.4608]
= 31,000 x 3.4608 / 0.02788
= 31,000 x 124.14
= 38,48,340
Max Property = 38,48,340 / (1 - 0.20) = 48,10,425
You can afford a property worth approximately 48.1 lakh.Loan Eligibility Reference Table
| Monthly Income | 15 yr @ 7.5% | 20 yr @ 7.5% | 25 yr @ 7.5% | 30 yr @ 7.5% |
|---|---|---|---|---|
| 40,000 | 1,941,722 | 2,234,378 | 2,435,753 | 2,574,317 |
| 60,000 | 2,912,583 | 3,351,568 | 3,653,630 | 3,861,476 |
| 80,000 | 3,883,443 | 4,468,757 | 4,871,506 | 5,148,635 |
| 100,000 | 4,854,304 | 5,585,946 | 6,089,383 | 6,435,793 |
| 150,000 | 7,281,456 | 8,378,919 | 9,134,074 | 9,653,690 |
| 200,000 | 9,708,608 | 11,171,892 | 12,178,765 | 12,871,586 |
Maximum loan amounts assuming 45% FOIR with no existing EMIs
Frequently Asked Questions
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that goes toward loan EMIs. Banks typically cap this at 40-50%. A lower FOIR means you have more disposable income and are a lower-risk borrower.
How can I increase my home loan eligibility?
Pay off existing loans to reduce FOIR, add a co-applicant's income, choose a longer tenure, improve your credit score for better rates, or increase your down payment to reduce the loan amount needed.
Does credit score affect eligibility?
Yes, significantly. A higher credit score (750+) qualifies you for lower interest rates, which increases your eligible loan amount. Some banks may reject applications below 650 or offer much higher rates.
What income is considered for eligibility?
Banks consider net take-home salary for salaried individuals. For self-employed, they look at net profit after tax from ITR for the last 2-3 years. Rental income, spouse income (as co-applicant), and other regular income may also be considered.
What is the maximum LTV ratio?
LTV (Loan-to-Value) ratio is the loan amount as a percentage of property value. Most banks offer up to 75-90% LTV depending on the loan amount. Higher-value properties typically have lower LTV limits (75-80%).