Home Loan Eligibility Calculator: How Much Can You Borrow?

Home loan eligibility is the maximum loan a lender will sanction based on how large an EMI your income can carry. A home loan eligibility calculator works backwards from that EMI: it decides the monthly instalment you can afford, then asks what loan amount that instalment would fully repay at a given rate and tenure.

The first step is FOIR, the fixed obligations to income ratio. It is your total monthly loan EMIs (including the proposed home loan) divided by your net monthly income. If a lender allows 50% FOIR and you take home ₹2 lakh a month, all your EMIs together can come to ₹1 lakh. Any car loan, personal loan or other EMI you already pay comes out of that ₹1 lakh first.

The second step converts the spare EMI into a loan amount using the present-value formula: Loan = EMI capacity × ((1 + r)^n − 1) ÷ (r × (1 + r)^n), where r is the annual rate ÷ 12 ÷ 100 and n is the tenure in months. It is simply the EMI formula solved for the principal.

The third step is the loan-to-value (LTV) ratio, the share of the property’s price the lender will fund. Even if your income supports a ₹2 crore loan, the lender will not lend more than the LTV cap allows against the property you are buying.

• Monthly income, household (₹50,000 to ₹30 lakh, default ₹3 lakh): use net take-home pay after tax and deductions, not CTC. If a spouse or parent will be a co-applicant, add their net income. Self-employed borrowers should use the monthly average of income shown in recent tax returns, since that is what lenders assess.
• Existing EMIs per month (default ₹30,000): every running loan EMI, such as car, personal, education or another home loan. Include EMIs you have guaranteed for someone else if the lender will count them.
• Interest rate (default 8.5%): the rate you expect to be offered. A higher rate means a smaller loan for the same EMI.
• Tenure (default 20 years): the repayment period. Longer tenure raises eligibility but must fit the lender’s age cap, typically set so the loan ends by somewhere between 60 and 70 years of age; confirm your lender’s rule.

The tool returns three numbers. The headline is your eligible loan amount. EMI capacity is 50% of your income minus existing EMIs: the largest new EMI the tool assumes a lender would allow. Property budget is the eligible loan divided by 0.75, which assumes the loan covers 75% of the price and you pay the remaining 25% as a down payment. At the defaults (₹3 lakh income, ₹30,000 existing EMIs, 8.5%, 20 years) that gives an EMI capacity of ₹1,20,000, a loan of about ₹1.38 crore and a property budget of about ₹1.84 crore.

Say you and your spouse take home ₹2.4 lakh a month combined, one of you pays an ₹18,000 car EMI, and you are looking at 3BHKs on Dwarka Expressway in Gurgaon. You enter an example rate of 8.5% and a 20-year tenure.

Two things jump out. First, the loan is only half the purchase. To use the full ₹1.18 crore you need about ₹51.7 lakh of your own money on top, before legal fees, brokerage or furnishing. If you have ₹30 lakh saved, your real budget is set by the cash, not by the loan. Second, the car loan is expensive in eligibility terms. Clearing that ₹18,000 EMI before applying raises the eligible loan to ₹1,38,27,701, an increase of ₹20,74,155.

Registering the flat in both names would also bring Haryana’s indicative stamp duty down from 7% to 6%, saving about ₹1.57 lakh on this budget. The flip side of our standard caution applies: an EMI of ₹1,02,000 is 42.5% of this couple’s take-home pay. That is serviceable, but it leaves thin margin if one income pauses.

The table below shows what the calculator returns for different net monthly household incomes with no existing EMIs, at an example 8.5% over 20 years. Subtract about ₹11.5 lakh of loan for every ₹10,000 of EMI you already pay.

Rate and tenure move the answer too. For the same ₹1,02,000 EMI capacity from the worked example, here is how the eligible loan changes.

Going from 20 to 30 years adds only about ₹15.1 lakh of eligibility while adding a decade of EMIs. Using a 30-year tenure to stretch into a bigger flat is usually a sign the flat is too expensive for your income.

The calculator applies 75% LTV to every loan size, so it always assumes a 25% down payment. For loans above ₹75 lakh that matches the RBI cap. For smaller loans, lenders may fund 80% or 90%, which means you need less cash, not that you can buy a bigger home. Take a single earner on ₹1.4 lakh a month with the same ₹18,000 car EMI: the tool shows a ₹59,92,004 loan and a ₹79.9 lakh property budget, which assumes about ₹20 lakh down. At the 80% LTV actually allowed for that loan size, the same loan can fund a ₹74.9 lakh home with about ₹15 lakh down.

So your real ceiling is the lower of two numbers: the eligible loan plus the cash you actually have, and your cash divided by the minimum down-payment share. Run both before you start site visits.

• Add a co-applicant. Lenders combine the net incomes of co-borrowers, usually a spouse or parent. In our example, a single earner on ₹1.4 lakh is eligible for about ₹59.9 lakh; adding a spouse’s ₹1 lakh takes the household to about ₹1.18 crore. Under the old tax regime, each co-owner who is also a co-borrower can claim deductions separately.
• Close small loans before applying. A ₹10,000 EMI with a few months left costs you about ₹11.5 lakh of eligibility. Paying it off from savings is often the cheapest way to borrow more.
• Protect your credit score. A score of roughly 750 or above typically gets the best pricing and the most generous FOIR. Pay card bills in full, avoid several loan enquiries in a short window, and check your report for errors months before you apply.
• Declare all regular income. Rental income, variable pay and bonuses may be counted, usually at a discount, if they show up consistently in bank statements and tax returns.
• Choose a lender whose FOIR matches your profile. Higher earners are often allowed 55–60%; entry-level salaries may be held nearer 40–45%.

• FOIR is fixed at 50% for everyone. Real lenders vary it by income band, employer category, job stability and credit score, so your sanction could be meaningfully higher or lower.
• LTV is fixed at 75% for every loan size, which overstates the down payment you need on loans up to ₹75 lakh, as explained above.
• No age cap on tenure. If you are 45, a 30-year tenure on the slider may not be available to you.
• No distinction between salaried and self-employed borrowers, whose income is assessed very differently.
• No allowance for the lender’s own valuation. If the bank values the flat below your agreement price, LTV is applied to the lower figure and the gap comes out of your pocket.
• No stamp duty, registration, GST on under-construction property (5%, or 1% for affordable housing) or other costs, all of which need cash.

• Treating eligibility as affordability. A 50% FOIR is a lender’s ceiling. For most families we suggest keeping total EMIs nearer 35–40% of take-home pay. At 40% FOIR, the ₹2.4 lakh couple would borrow about ₹89.9 lakh, not ₹1.18 crore.
• Entering gross salary or CTC. The calculator and the lender both work on net monthly income, so gross figures overstate eligibility.
• Forgetting the cash side. Eligibility says nothing about whether you can fund the down payment, stamp duty and registration.
• Applying to many lenders at once. Each application triggers a hard credit enquiry. Shortlist two or three, then apply.
• Booking a flat before sanction. Get an in-principle sanction first, especially on an under-construction project where the builder’s payment plan will not wait for your loan.

When PropertyNivesh advises a buyer, we start from the EMI that is comfortable, not the one that is allowed, then check the cash you have for down payment and duty. Whichever limit is tighter sets the shortlist.