Find Out How Much Home Loan You Can Get – Before You Apply
Enter your monthly income, existing EMIs, and preferred loan tenure, and this home loan eligibility calculator instantly shows the maximum loan amount a bank is likely to sanction. No guessing, no waiting for a bank appointment.
How to Use This Calculator
- Net Monthly Income: Enter your take-home salary (salary credited to your account after all deductions). Include any fixed rental or other regular income if it is proven by documents.
- Existing EMIs: Add the total of any ongoing loan EMIs – car loan, personal loan, credit-card EMIs, etc.
- Expected Interest Rate: Use the rate your bank has quoted, or the current market rate (around 8.5%–9.5% p.a. for most salaried borrowers as of 2025).
- Loan Tenure: Choose how many years you want to repay – most lenders allow up to 30 years.
- Result: The calculator shows your estimated eligible loan amount based on the Fixed Obligation to Income Ratio (FOIR) that Indian banks typically apply.
Worked Example – Salaried Buyer in Pune
Say you earn ₹75,000 per month net and already pay a car-loan EMI of ₹8,000.
- Available income for new EMI (at 50% FOIR): ₹75,000 × 50% = ₹37,500
- After deducting existing EMI: ₹37,500 − ₹8,000 = ₹29,500 per month available for home-loan EMI
- At 9% p.a. for 20 years, an EMI of ₹29,500 corresponds to an eligible loan of roughly ₹32.5 lakh
So with these numbers you could expect an offer in the range of ₹30–33 lakh, depending on which lender you approach. The calculator above does this arithmetic for you in seconds.
How Loan Eligibility Is Estimated – the Formula Explained
Indian banks use a metric called FOIR (Fixed Obligation to Income Ratio) – the share of your monthly income that can go toward all loan EMIs combined. Most lenders cap it at 40%–50% of net monthly income for salaried employees and around 40% for self-employed borrowers.
The calculation works in two steps:
Step 1 – Max allowed EMI
= Net Monthly Income × FOIR% − Existing EMIs
Step 2 – Eligible Loan Amount (standard EMI formula)
= Max Allowed EMI × [ (1+r)^n − 1 ] / [ r × (1+r)^n ]
where:
r = monthly interest rate (annual rate ÷ 12 ÷ 100)
n = loan tenure in months
In plain words: the bank first decides the biggest EMI you can safely afford, then works backward to find the loan that fits that EMI.
| Net Monthly Income | FOIR (50%) | Existing EMI | Available for Home Loan EMI | Eligible Amount* (9%, 20 yr) |
|---|---|---|---|---|
| ₹40,000 | ₹20,000 | ₹0 | ₹20,000 | ~₹22 lakh |
| ₹75,000 | ₹37,500 | ₹8,000 | ₹29,500 | ~₹32.5 lakh |
| ₹1,20,000 | ₹60,000 | ₹15,000 | ₹45,000 | ~₹49.5 lakh |
| ₹2,00,000 | ₹1,00,000 | ₹20,000 | ₹80,000 | ~₹88 lakh |
*Indicative only. Actual bank decisions vary by lender, credit score, property type and age.
Key Rules and Limits to Know (FY 2025-26)
- FOIR cap: 40%–50% of net monthly income for salaried; typically 40% for self-employed. Each bank sets its own ceiling.
- Minimum net income: Most banks require at least ₹20,000–₹25,000/month for salaried applicants.
- Maximum tenure: Up to 30 years, but the loan must close before you turn 60–70 (retirement age varies by lender). Younger borrowers can get longer tenures.
- LTV ratio: Lenders finance 75%–90% of the property value (Loan-to-Value). Even if you're eligible for ₹60 lakh, a ₹50 lakh flat may only get a loan of ₹40–45 lakh.
- Credit score: A CIBIL score of 750+ usually gets the best rates. Below 700, many banks may decline or charge a higher rate.
- Co-applicant boost: Adding a working spouse or parent as a co-applicant combines both incomes, which can raise eligibility significantly.
- RBI guidelines: Floating-rate home loans are linked to an external benchmark (usually the RBI repo rate) as per RBI's 2019 circular – so your EMI may change if the repo rate moves.
Tax Angle – Home Loan Deductions in FY 2025-26
Knowing your eligible loan amount also helps you plan tax savings. Under the old tax regime:
- Section 24(b): Deduct up to ₹2 lakh per year on interest paid for a self-occupied property.
- Section 80C: Deduct up to ₹1.5 lakh per year on principal repaid (within the overall 80C limit).
- Under the new tax regime (default from FY 2024-25), Section 80C and 24(b) deductions are not available for a self-occupied property. Confirm your regime choice before filing.
See the official Income Tax Department website for updated provisions.
Practical Tips Before You Apply
- Clear small loans first: Even a ₹5,000/month personal loan EMI can cut your eligible amount by ₹5–6 lakh. Closing it before applying boosts eligibility noticeably.
- Use gross income only if documented: Variable pay, bonuses and rental income are counted by some banks at 50%–75% of their value. Don't inflate your income figure.
- Compare tenures: A 20-year loan vs. a 25-year loan changes the EMI (and therefore eligibility) significantly – try both in the calculator.
- Get a pre-approval letter: Some banks offer in-principle sanction letters that are valid for 90 days. It strengthens your position with a seller.
- Remember the down payment: Eligibility tells you the loan, not the total cost. Budget separately for 10%–25% down payment plus stamp duty and registration charges.
- Results are indicative: This calculator uses a standard FOIR model. The final loan amount is always at the bank's discretion after verifying your documents, credit history and the property.
Your Data Stays Private
This calculator runs entirely in your browser. No income figures, EMI details or personal data are sent to any server or stored anywhere. You can use it freely without any sign-up.
Takeaway: Knowing your eligible loan amount before you start property hunting puts you in control – use the calculator above to get your number in under a minute.