Home Affordability Calculator
LoanFind out what price home you can afford based on your income, savings, and existing EMIs. Calculates maximum home price, loan eligibility, and required down payment.
ā¹0
ā¹
Affordable Home Price
ā¹96.42 L
Maximum Loan Amount
ā¹86.42 L
Monthly EMI
ā¹75,000
Down Payment as % of Home Price
10.37%
Corpus Breakdown
How your investment grows over time
Invested
ā¹0
Returns
ā¹0
ROI
0%
What is a Home Affordability?
A Home Affordability Calculator tells you the maximum property price you can realistically target based on your income, savings, and existing financial commitments. It combines two key inputs: the maximum home loan you are eligible for (limited by your income and FOIR) plus the down payment you can bring to the table.
Unlike the Loan Eligibility Calculator which only shows the loan amount, the Home Affordability Calculator gives the complete property budget ā the all-important number before you start searching for homes or talking to developers.
For Indian home buyers, this calculation is the essential first step. Property prices in Tier 1 cities (Mumbai, Delhi NCR, Bengaluru) range from ā¹50 lakh to several crore, while Tier 2 cities (Pune, Hyderabad, Ahmedabad) offer properties in the ā¹30ā80 lakh range. Knowing your ceiling before entering the market prevents falling in love with a property you cannot actually afford.
The calculation flow:
- Your income Ć FOIR minus existing EMIs = maximum monthly EMI you can service
- That EMI reverse-calculated at the loan rate and tenure = maximum loan amount
- Maximum loan + down payment savings = affordable home price
Related tools: Home Loan EMI Calculator to verify the EMI on a specific property, Loan Eligibility Calculator for just the loan component, and Savings Goal Calculator to plan how long it takes to save a target down payment.
How to use this Home Affordability calculator
- Enter your Monthly Net Income ā take-home after all deductions (add spouse income if they'll be a co-borrower).
- Enter Existing Monthly EMIs ā total of all current loan repayments.
- Enter Down Payment Available ā the savings you can deploy for this purchase (FD, liquid funds, EPF withdrawal, gift from family).
- Set the Home Loan Interest Rate ā current rate from your preferred lender.
- Set the Loan Tenure ā typically 15ā25 years.
- Adjust the FOIR if you know your lender's specific norm.
- The Affordable Home Price is your property search budget.
- Check the Down Payment % ā if it's below 10%, banks may not finance the remaining; you may need more savings.
Formula & Methodology
Step 1 ā Maximum Affordable EMIMax EMI = (Monthly Income Ć FOIR%) ā Existing EMIsStep 2 ā Maximum Loan via Reverse EMI FormulaMax Loan = Max EMI Ć [1 ā (1 + r)^-n] Ć· rStep 3 ā Affordable Home PriceAffordable Home Price = Max Loan + Down PaymentWorked example: Income ā¹1,50,000/month, existing EMIs ā¹0, down payment ā¹15 lakh, rate 8.5%, tenure 20 years, FOIR 50%. 1. Max EMI: ā¹1,50,000 Ć 50% = ā¹75,000 2. r = 0.7083%/month; n = 240 months 3. Max Loan: ā¹75,000 Ć [1 ā (1.007083)^ā240] Ć· 0.007083 = ā¹76.9 lakh 4. Affordable Home Price: ā¹76.9 lakh + ā¹15 lakh = ā¹91.9 lakh Down payment required by LTV norms: | Property Price | LTV 80% (20% down) | LTV 90% (10% down) | |---|---|---| | ā¹30 lakh | ā¹6 lakh | ā¹3 lakh | | ā¹50 lakh | ā¹10 lakh | ā¹5 lakh | | ā¹75 lakh | ā¹15 lakh | ā¹7.5 lakh | | ā¹1 crore | ā¹20 lakh | ā¹10 lakh |
Frequently Asked Questions
What is a Home Affordability Calculator?
A Home Affordability Calculator combines your loan eligibility with your available down payment to determine the total home price you can afford. Your income and existing EMIs set a maximum loan amount (via the FOIR rule), and adding your saved down payment gives the total property budget. It answers the practical question: 'What is my maximum home price?' rather than just 'What loan will I get?'
What is the ideal down payment percentage in India?
Banks in India typically finance up to 80ā90% of the property's market value (LTV ā Loan to Value ratio). This means you need to arrange 10ā20% as a down payment. An 80% LTV on a ā¹50 lakh home requires ā¹10 lakh down. Lenders prefer higher down payments as it reduces their risk. A larger down payment also reduces your loan amount, lowering total interest paid and monthly EMI.
How is the affordable home price calculated?
The calculator first determines your maximum loan eligibility using the FOIR rule: maximum EMI = income Ć FOIR% ā existing EMIs. This EMI is then reverse-calculated into a maximum loan amount at your specified interest rate and tenure. Your down payment savings are added to this loan amount to give the maximum home price. For example, a ā¹38 lakh loan eligibility + ā¹10 lakh down payment = ā¹48 lakh affordable home.
Should I enter monthly gross or net income?
Enter your net monthly take-home income ā the amount credited to your bank account after EPF, TDS, and other deductions. Lenders use net income to ensure EMIs are affordable from actual cash flow. If you have a co-applicant, enter the combined net income of both borrowers.
What interest rate should I use?
As of mid-2026, home loan interest rates in India range from 8.25% to 9.5% depending on the lender, your credit score, and loan amount. SBI, HDFC, and LIC HFL typically offer competitive rates. Use 8.75% as a mid-range assumption; adjust to the rate quoted by your preferred lender. A 0.5% difference in rate on a ā¹50 lakh loan over 20 years changes the EMI by about ā¹1,700 per month.
What tenure should I choose for a home loan?
Most home loans in India are taken for 15ā25 years. A longer tenure (25ā30 years) reduces the monthly EMI and increases affordability, but significantly increases total interest paid. A 20-year tenure is a common balance point. If you're over 40, banks typically limit tenure so the loan is repaid before retirement (age 60ā65), which may restrict options.
Does the calculator account for stamp duty and registration?
No. The calculator shows the property purchase price. Stamp duty in India ranges from 3ā8% of the property value depending on the state (e.g., 5% in Maharashtra, 6% in Karnataka, 7% in Uttar Pradesh). Registration fee is typically 1%. These are additional costs paid from your savings and are not covered by the home loan. Budget an additional 8ā10% of the property value for these costs.
Can I use my EPF balance as a down payment?
Yes. EPFO allows withdrawal for home purchase after 5 years of membership (for a first home). You can withdraw up to 90% of the employee's EPF balance for purchase of a new home or construction. This can boost your effective down payment. Check your EPF balance and withdrawal rules with EPFO before counting this in your plan.
How does a co-borrower affect home affordability?
Adding a co-borrower (typically a spouse) combines both incomes for FOIR calculation, significantly increasing the maximum loan amount and thus the affordable home price. For example, if one person has ā¹1,00,000 net income and their spouse ā¹60,000, the combined income of ā¹1,60,000 at 50% FOIR supports a much larger EMI. Co-borrowers also share the home loan tax benefits under Section 24 and Section 80C.
What is the 28% housing cost rule?
A common personal finance guideline suggests your monthly housing expense (EMI) should not exceed 28ā30% of your gross monthly income. Indian banks generally use FOIR (40ā55%) which is more liberal. For conservative financial planning, applying 28ā30% yourself gives you a more comfortable margin ā the resulting loan amount will be lower than the calculator's 50% FOIR default, but the monthly financial stress will be lower.
Should I buy the most expensive home the calculator allows?
Not necessarily. The calculator shows the maximum you can afford from a bank's lending perspective. Financial advisors generally recommend spending no more than 4ā5Ć your annual income on a home. For a ā¹12 lakh per year income household (ā¹1 lakh/month), a ā¹48ā60 lakh home is within this guideline. Leaving headroom below the maximum loan amount provides a buffer for other financial goals like retirement, children's education, and emergency funds.