Loan Affordability Calculator
Find the **maximum loan** and **home price** you can comfortably afford.
Inputs
Affordable EMI
—
= (Income × DTI) − Existing EMIs − Other housingMax Loan Amount
—
Principal you could borrowMax Home Price
—
= Max Loan + Down PaymentTotal Interest (Life of Loan)
—
At the max loan and selected rate/termLoan Cost Breakdown
- Principal —
- Interest —
- Total of Payments —
| Monthly Rate | — |
|---|---|
| Term (months) | — |
| Formula | PV = PMT × (1 − (1 + r)−n)/r |
What is it & why use it?
Find out how much home loan or personal loan you can afford based on income, expenses, and interest rate with our Loan Affordability Calculator. This tool on Calci.in helps you understand safe borrowing limits before approaching banks.
Formula (explained)
Loan Amount = (Monthly Income – Expenses) × Multiplier ÷ EMI Factor
(Depends on interest rate & tenure)
Variables: Income = monthly earnings, Expenses = monthly obligations, Multiplier = based on bank norms, EMI factor depends on interest rate and tenure.
Example calculation
Income ₹80,000, Expenses ₹30,000 → Surplus = ₹50,000.
At 8% rate, 20 years → Affordable loan ≈ ₹45,00,000.
Benefits & use cases
Know eligibility before applying
Avoid over-borrowing
Helps in financial planning
Related calculators on Calci.in
EMI Calculator
Mortgage Calculator
Rent vs Buy Calculator
External references (authority sources)
Investopedia – Loan Affordability
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FAQs
Q1: What is loan affordability?
A: It is the maximum loan amount you can borrow without financial stress.
Q2: What factors affect affordability?
A: Income, expenses, interest rates, and tenure.
Q3: Can banks approve more than this?
A: Banks may approve slightly higher amounts, but affordability ensures safety.
Q4: Does credit score matter?
A: Yes, a good credit score improves approval chances.