How House Affordability Works
This calculator uses the FOIR (Fixed Obligation to Income Ratio) method to determine the maximum home loan you qualify for. Banks typically allow up to 50% of your in-hand income for all EMIs combined. The calculator subtracts your existing EMIs, calculates the maximum home loan EMI you can afford, and derives the property price.
Formula
Max EMI = (Monthly Income × 50%) - Existing EMIs
Max Loan = EMI × [(1+r)^n - 1] / [r × (1+r)^n]
Max Property Price = Max Loan + Down Payment
r = monthly interest rate, n = tenure in monthsTotal Cash Needed Upfront
When buying a house, you need more than just the down payment. Budget for these upfront costs:
| Down Payment | 10-25% of property value | Required by bank |
| Stamp Duty & Registration | 5-7% of property value | Varies by state |
| Home Loan Processing Fee | 0.5-1% of loan amount | Paid to bank |
| Legal & Other Charges | ₹50,000 - ₹2 lakh | Lawyer, valuation, etc. |
Tips to Increase Home Loan Eligibility
- •Close Existing Loans: Pay off personal loans and credit card debt to reduce existing EMIs
- •Add Co-Applicant: Adding spouse or parent as co-applicant increases combined income and eligibility
- •Opt for Longer Tenure: 25-30 year tenure reduces EMI and increases loan eligibility
- •Increase Down Payment: Higher down payment reduces loan amount and improves approval chances
Common questions
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that goes toward EMIs. Banks typically allow up to 50% FOIR, meaning your total EMIs (including the new home loan) shouldn't exceed 50% of your in-hand income.
How much down payment do I need?
Banks typically finance 75-90% of property value, so you need 10-25% as down payment. Additionally, budget 5-7% for stamp duty, registration, and other charges.
Should I include existing EMIs?
Yes. Banks consider all existing EMIs (car loan, personal loan, credit card EMI) when calculating your home loan eligibility. Higher existing EMIs reduce the home loan amount you qualify for.
What is the maximum loan tenure?
Most banks offer home loans up to 30 years, but the maximum tenure depends on your age. Typically, the loan must be repaid by age 60-65 (retirement age).
How much should I budget for stamp duty?
Stamp duty and registration charges vary by state but typically range from 5-7% of property value in most Indian states. Some states offer concessions for women buyers.
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Request a calculator →Disclaimer: House affordability calculation is indicative only. Actual loan eligibility depends on credit score, employment type, bank policies, and other factors. Consult your bank for accurate eligibility assessment.
Last updated: May 2026