Loan Affordability Calculator
Estimate the maximum loan amount you could reasonably afford based on your income and existing obligations — the reverse of an EMI calculator.
This is a planning estimate only, not a lending decision. Actual loan eligibility depends on the lender's own criteria. See our Disclaimer.
How this is calculated
First, the calculator works out how much monthly EMI fits your target debt-to-income ratio, after subtracting any EMIs you're already paying. Then it works the EMI formula backward — the same formula the EMI Calculator uses forward — to find the loan principal that would produce that EMI at your given rate and tenure.
Worked example
On an income of 80,000/month with an existing EMI of 5,000 and a target ratio of 40%, the affordable EMI is (80,000 × 0.4) − 5,000 = 27,000. At 9% interest over 20 years, that supports a loan of roughly 30,00,914.
Why lenders use a debt-to-income ratio
Most lenders cap total EMI obligations (including the new loan) at 40–50% of monthly income, to leave enough for living expenses and reduce default risk. This calculator lets you test different ratios to see how they affect your borrowing power.
Frequently asked questions
Is this the amount a bank will actually approve?
No — this is a planning estimate. Actual approval depends on the lender's specific policies, your credit history, existing liabilities, and other factors this calculator doesn't have access to.
What ratio should I use?
40% is a commonly used benchmark, but more conservative planners often use 30–35% to keep more room in the monthly budget. Try a few ratios to see the range.