🏠 Loan Affordability Calculator

About this Loan Affordability Calculator

Banks often approve loans your budget can't actually survive. This calculator works the safe direction: from your take-home income and real monthly expenses, it finds the largest EMI that fits — capped by both a share-of-income rule (40% is a common guardrail) and the cash genuinely left over — then converts that EMI into the approximate loan amount it supports at your expected rate and term.

How to use it

1. Enter your monthly take-home income.
2. Enter all monthly expenses honestly — rent, food, bills, existing EMIs.
3. Set the share of income you allow for a new EMI, plus expected rate and term.
4. Click the button to see your max EMI and the loan it roughly unlocks.

Example

Income 150,000 with expenses of 90,000 leaves 60,000; at a 40% rule the cap is also 60,000, which at 15% over 5 years supports a loan of roughly 2.52 million.

Frequently asked questions

Why the 40% rule?

Lenders commonly keep total EMIs under 40–50% of income. Staying at or below 40% leaves room for savings and surprises.

Is the loan amount exact?

It is the standard EMI formula solved for principal, so it is mathematically right for a fixed-rate reducing-balance loan — but bank fees, insurance and rate changes will shift the real figure slightly.

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