House affordability calculator
The home price your income and savings can support.
₹1,50,000 (1.5 lakh) · Banks usually use net monthly salary
Indian banks allow about 40–60%; Gulf banks cap total debt at around 33–50% of salary
₹15,00,000 (15 lakh)
The share of the price a bank will lend: often 75–90%
Home price you can afford
₹75,00,000
Your down payment limits the loan; saving more raises the price you can afford.
- Highest EMI the bank allows
- ₹75,000
- Loan your income supports
- ₹86,42,313
- Loan your down payment supports (80% LTV)
- ₹60,00,000
- Loan amount
- ₹60,00,000
- Down payment
- ₹15,00,000
- Home price you can afford
- ₹75,00,000
- EMI on this loan
- ₹52,069
Also budget for registration and stamp duty, transfer fees, brokerage and furnishing, often 7–10% of the price on top. Banks also check your age, credit score and job history.
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How to work out how much house you can afford
- 1
Enter your monthly income and existing EMIs.
- 2
Set the EMI share your bank allows and your down payment.
- 3
Enter the loan rate, tenure and maximum loan-to-value.
- 4
See the loan amount, the home price and the EMI.
The two limits on a home loan
When you apply for a home loan, the bank checks two things, and the lower one sets your budget:
- Your income: your total EMIs, including existing loans, can’t exceed a share of your monthly income. Indian banks call this FOIR and usually allow 40–60%; Gulf banks cap the debt-burden ratio at around 33–50% of salary.
- Your down payment: the bank lends only a share of the property’s value (loan-to-value, LTV), commonly 75–90%. The rest is your down payment.
A home loan eligibility calculator and mortgage affordability calculator: how much house can I afford?
Example
Income 1,50,000 a month, no other loans, 50% FOIR: the highest EMI is 75,000. At 8.5% for 20 years, that supports a loan of about 86 lakh. With a down payment of 15 lakh and an 80% LTV limit, though, the bank will lend only 60 lakh, so the affordable price is 75 lakh, limited by the down payment. Saving more raises it; a higher salary alone wouldn’t.
Extra costs to budget for
- Stamp duty and registration (often 5–8% of the price in India) or transfer fees.
- Brokerage, legal checks and loan processing fees.
- Interiors, furniture and moving.
Many buyers keep 7–10% of the price aside on top of the down payment.
Make the EMI comfortable
The maximum a bank allows isn’t always comfortable. Keep enough left over for savings, insurance and an emergency fund. A longer tenure lowers the EMI but costs much more interest; compare options in the EMI calculator. If buying isn’t right yet, see the rent affordability calculator.
Frequently asked questions
How do banks decide how much I can borrow?
Two limits: your EMIs, including existing ones, must stay within a share of income (FOIR or debt-burden ratio), and the loan can only be a share of the home’s value (LTV). The lower one decides.
How much down payment do I need?
At least the part of the price the bank won’t lend: 20% for an 80% LTV, plus registration, stamp duty and other costs.
Does a longer tenure help?
It lowers the EMI, so the same income supports a bigger loan, but you pay much more interest overall.
Is the result what my bank will approve?
It’s an estimate. Banks also look at your age, credit score, job stability and the property itself.