WealthJot.ai
WealthJot.ai
🏠 Home Loan Eligibility Calculator
Estimate the home loan amount you may qualify for, based on income and obligations

A Home Loan Eligibility of ₹1,00,000/month for 20 years at 8.5% is ₹57.62 L.

Formula

Max EMI = (Net Monthly Income × FOIR%) − Existing EMIs; Eligible Loan = Max EMI converted to principal using the EMI formula at the given rate and tenure

Worked example
InputValue
Net Monthly Income₹1,00,000
Existing Monthly EMIs₹0
Interest Rate8.5%
Loan Tenure20 yr
EMI-to-Income Limit (FOIR)50%
Eligible Loan Amount₹57,61,542
Max Affordable EMI₹50,000
Total Interest (full tenure)₹62,38,458
Total Payable₹1,20,00,000

How banks decide your loan amount

Lenders work backwards from one ratio: FOIR (fixed obligation to income ratio) — the shareA unit of ownership in a company. of your monthly income that can safely go to EMIs, typically capped near 50%. Your eligible loan is whatever principal that permissible EMI supports at the offered rate and tenure, after subtracting EMIs you already pay.

ExampleIncome ₹1.5 lakh/month, no obligations, 50% FOIR → ₹75,000 of EMI headroom → roughly ₹86 lakh eligible at 8.5% over 20 years. Add a ₹15,000 car-loan EMIThe fixed monthly payment that repays a loan. and headroom drops to ₹60,000 — eligibility falls by ~₹17 lakh. Every running EMI (and even credit-card limits, at some lenders) directly shrinks the house you can buy.
The levers that raise eligibility, in order of power: co-applicant income (a working spouse can nearly double the number), closing existing EMIs before applying, longer tenure (a 30-year term supports ~15% more principal than 20 — at brutal extra interest), and a cleaner credit score (750+ unlocks the best rates, and rate cuts feed straight back into eligibility).
Common mistakeBorrowing the full eligible amount. The bank’s 50% FOIR protects the bank, not your life: it ignores your SIPs, school fees, parental supportPrice zones where buying (support) or selling (resistance) tends to dominate. and any income wobble. A self-imposed EMI cap near 35-40% of income keeps the house from consuming the rest of the financial plan — eligibility is a ceiling, not a target.
✓ You learnedEligibility ≈ the loan your permissible EMI (≈50% of income minus existing EMIs) supports at the given rate and tenure. Boost it with a co-applicant and by closing debts — then deliberately borrow less than you’re offered; the bank underwrites its risk, not your goals.
FAQs
Why did two banks quote me different eligibility?

Each lender sets its own FOIR (45-60%), treats variable pay and rental income differently, and prices risk into the rate — a 0.5% rate difference alone moves eligibility several lakhs. Get 2-3 quotes, but remember the winning number isn’t the biggest loan — it’s the best rate on the loan you actually need.