EMI Affordability Calculator
Check the maximum EMI you can afford based on your salary using the safe 50% FOIR rule. Free, privacy-first — inputs never leave your browser.
Details
Result
Max Affordable EMI
₹50,000
Max Loan Amount
₹57,61,542
Salary × FOIR
₹50,000
Total EMI as % of Salary
50.0%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How much EMI can I afford?
Banks use the FOIR (Fixed Obligation to Income Ratio) — all your existing EMIs plus the new one cannot exceed 50-55% of your monthly income. Prudent personal finance suggests keeping total EMIs under 40% of take-home so you still have room to save and invest.
This calculator starts from your salary, subtracts existing EMIs, and shows the maximum new EMI and loan amount you can safely take.
Common questions about EMI Affordability
What is FOIR?+
Fixed Obligation to Income Ratio — banks allow up to 50% of your monthly income toward all EMIs combined.
How do banks calculate my EMI affordability?+
Banks use your net monthly take-home (after PF, tax, existing EMIs) and apply a 40%-55% FOIR ceiling. For income above ₹1 lakh/month, some banks extend to 60%. They also consider employer category (MNC/PSU/listed company gets better terms), job stability (minimum 2 years), and CIBIL score. Your home loan EMI alone should typically not exceed 40% of gross monthly income.
How much salary do I need for a ₹50 lakh home loan?+
For a ₹50 lakh loan at 8.75% over 20 years, EMI is approximately ₹44,000. Assuming 50% FOIR and no other EMIs, you need a net take-home of ~₹88,000/month (gross ~₹1.2 lakh). Add other EMIs (car, personal loan, credit card dues) and required salary rises proportionally. Co-applicants (spouse income) can increase eligibility by their FOIR capacity.
How do existing EMIs affect new loan eligibility?+
Every existing EMI reduces available FOIR. If your gross is ₹1 lakh and you already pay ₹15,000 in car+credit card EMIs, the bank assumes only ₹35,000 is available for new home loan EMI (assuming 50% FOIR). Clear small personal loans or credit card balances before applying for a home loan — it can unlock ₹10-20 lakh additional eligibility.
Is 50% FOIR safe for my personal finances?+
No, 50% is the banker's ceiling, not a financial planner's recommendation. Aim for total EMI burden under 35%-40% of take-home. Beyond that, emergency fund building, retirement SIPs, and insurance premiums get squeezed. Financial stress rises disproportionately — every 5% over 40% FOIR roughly doubles loan default risk per RBI studies.
How can I improve my EMI affordability?+
Five levers: (1) Boost credit score to 780+ for best rates — saves 0.25%-0.50%. (2) Add a co-applicant (spouse, parent) to pool incomes. (3) Extend tenure to 25-30 years (lower EMI, but more interest). (4) Make larger down payment (20%-30%) to reduce loan amount. (5) Close small loans before applying — reduces FOIR drag.