Loan Affordability Calculator 2026
Find out how much loan you can afford based on your monthly income, expenses, and existing EMIs. Uses bank-standard FOIR (Fixed Obligation to Income Ratio) method.
Home Loan
20-30 Years
Longest tenure
Car Loan
5-7 Years
Medium tenure
Personal Loan
1-5 Years
Short tenure
FOIR Standard
50-60%
Bank norm
Loan Details
FOIR (Fixed Obligation to Income Ratio)
Bank Standard: 50-60%Higher FOIR means more loan eligibility but higher risk
Tips to Increase Loan Eligibility
- • Increase down payment - Reduces loan amount
- • Clear existing debts - Lowers FOIR
- • Add co-applicant - Combines income
- • Choose longer tenure - Reduces EMI
You Can Afford a Loan of
₹ 42,50,000
Available Monthly
₹ 41,250
For New EMI
Total Obligations
₹ 25,000
EMI + Expenses
Surplus Income
₹ 50,000
After all expenses
Home Loan
₹ 42.5 L
@8.5% for 20 yrs
Car Loan
₹ 15.2 L
@9.5% for 5 yrs
Personal Loan
₹ 8.5 L
@12% for 3 yrs
Income Breakdown
Net Income
After tax & deductions
₹ 75,000
Existing EMIs
Current loan payments
₹ 5,000
Living Expenses
Monthly household costs
₹ 20,000
Available for New EMI
Based on FOIR limit
₹ 41,250
Loan Options Comparison
| Loan Type | Max Loan Amount | EMI | Interest Rate | Tenure | Action |
|---|---|---|---|---|---|
| Home Loan | ₹ 42,50,000 | ₹ 37,125 | 8.5% | 20 Years | Calculate EMI |
| Car Loan | ₹ 15,20,000 | ₹ 31,950 | 9.5% | 5 Years | Calculate EMI |
| Personal Loan | ₹ 8,50,000 | ₹ 28,235 | 12% | 3 Years | Calculate EMI |
❓ Frequently Asked Questions
How is loan affordability calculated?
Loan affordability is calculated using the FOIR (Fixed Obligation to Income Ratio) method. Banks typically allow 50-60% of your net income for all EMIs combined. The formula is: Maximum EMI = (Net Monthly Income × FOIR) - Existing EMIs. Then, based on the EMI, interest rate, and tenure, the maximum loan amount is calculated.
What is a good FOIR for loan approval?
Most banks prefer FOIR below 50-60%. < 40%: Excellent - High chance of approval; 40-50%: Good - Standard approval; 50-60%: Borderline - May need justification; > 60%: High risk - Likely rejection.
How much home loan can I get on 50,000 salary?
On a ₹50,000 monthly salary, assuming no existing EMIs and FOIR of 55%, you can get approximately ₹30-32 lakhs for a 20-year home loan at 8.5%.
Does adding a co-applicant increase loan eligibility?
Yes, adding a co-applicant (spouse or parents) can significantly increase your loan eligibility as combined income is considered.