Home loan eligibility calculator
For salaried borrowers: see how much home loan the salary supports at the lender's FOIR, how much the property supports at the LTV, and which one decides the loan.
Eligible home loan
EMI capacity = Salary × FOIR − Existing EMIs. Loan by income = EMI capacity ÷ EMI per ₹1 lakh. Loan by property = Property value × LTV. Eligible loan = the lower of the two. RBI caps home loan LTV at 90% up to ₹30 lakh, 80% from ₹30–75 lakh and 75% above ₹75 lakh.
This calculator is for learning. Banks apply their own policies, margins and benchmarks, so treat the result as a guide, not a credit decision.
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How banks decide a home loan amount
For a salaried borrower, a bank looks at two limits and lends the lower of them:
- What the salary can repay. The bank allows only a share of the net monthly salary to go towards EMIs. That share is the FOIR (fixed obligations to income ratio), usually 50–70% depending on the income level and the lender. Existing EMIs come out of that share first; what is left is available for the new loan.
- What the property supports. The loan can't exceed a set share of the property's value: the LTV (loan to value). RBI caps home loan LTV at 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. Lenders can be stricter.
How to use this calculator
- Enter the net monthly salary: the average credited in the last three salary slips.
- Enter the lender's FOIR and your existing EMIs.
- Enter the interest rate, tenure and property value, and the LTV.
- Optionally, enter the loan you want to check whether it fits.
The formula
- EMI capacity = Net salary × FOIR − Existing EMIs
- Loan by income = EMI capacity ÷ EMI per ₹1 lakh at the rate and tenure
- Loan by property = Property value × LTV
- Eligible loan = the lower of the two
Worked example
Net salary ₹1,00,000 a month, FOIR 60%, existing EMIs ₹40,000, a 10-year loan at 8.5% and a property worth ₹20 lakh at 80% LTV:
- Salary available for EMIs: ₹60,000. Less existing EMIs: ₹20,000 left for the new loan
- EMI per ₹1 lakh: ₹1,240, so the salary supports ₹16.13 lakh
- The property supports 80% × ₹20 lakh = ₹16 lakh
- Eligible loan: ₹16 lakh. The property, not the salary, sets the limit here.
Frequently asked questions
How can a borrower increase eligibility? A longer tenure lowers the EMI per lakh. Adding an earning co-applicant raises the income. Closing a small loan frees up EMI capacity. A bigger down payment helps when the LTV is the limit.
Does the bank take gross or net salary? Most lenders work on the net salary credited to the account, sometimes adding regular allowances or variable pay at a discount.
Is the CIBIL score part of this? Not in this calculation, but it decides whether the loan is approved at all and at what rate.
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