Home Affordability Calculator
Work out the highest home price you can afford from your income, existing EMIs and down payment.
Enter your numbers
Example: 60000
Example: 5000
Example: 1000000
Example: 9
Example: 20
Recent
Formula
How the calculation works
Lenders usually cap total loan payments at about forty percent of income, so the maximum EMI is that limit minus any EMI you already pay.
The loan you can carry is the present value of that EMI over the term, and adding your down payment gives the price you can afford.
A lower rate or a longer term raises the affordable price, because each rupee of EMI buys a bigger loan.
Common mistakes
- Stretching to the maximum: the forty percent rule leaves no room for the costs of owning, like maintenance and taxes.
- Forgetting that a new loan will also be assessed on its own, so a big car loan can shrink the home loan that follows.
When to use it
- Use it to set a realistic price range before you start viewing homes.
- It is not an approval; the lender also checks your credit history and income proof.
Worked example
On a 60,000 income with 5,000 existing EMI, 1,000,000 down payment, 9% over 20 years, the affordable price is about 3,111,754.
Common questions
What income share is assumed?
It uses 40% of monthly income as the maximum total EMI, a common lender guideline.
Does the down payment count?
Yes, the affordable price equals the loan amount plus your down payment.
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