Loan Affordability Calculator
Find out the maximum loan amount your income can comfortably support, based on your take-home pay, existing EMIs and desired loan terms.
Your income & loan details
$
$1K$1M
$
$0$500K
%
10%70%
%
0.5%30%
yr
1y30y
Maximum loan you can afford
$252,613
$3,200/mo EMI budget
Loan$252.6K
PrincipalInterest
Available EMI budget
$3,200
Max affordable loan
$252,613
Total interest (est.)
$131,387
Total payable
$384,000
What is a loan affordability calculator?
A loan affordability calculator answers the question: "How much can I borrow without overextending myself?" Rather than starting from a loan amount and calculating the EMI, this calculator works in reverse — it starts from your income and gives you the maximum loan you can service comfortably.
This is especially useful before applying for a home loan or car loan, so you can set a realistic budget and negotiate from an informed position.
How affordability is calculated
- Monthly take-home income — your net salary after tax and all deductions.
- Existing EMIs — total monthly payments on current loans. This reduces your available EMI budget for the new loan.
- Max EMI-to-income ratio — most lenders allow 40–50%. A lower ratio (30–35%) leaves more room for other expenses and investments.
- Interest rate & tenure — the terms of the proposed loan, used to reverse-calculate the maximum principal.
The formula
Max EMI = (Income × ratio%) − Existing EMIs
Max Loan = Max EMI × ((1+r)^n − 1) ÷ (r × (1+r)^n)
r = monthly rate, n = total months
Frequently asked questions
What EMI-to-income ratio should I target?
Most financial planners recommend keeping total EMIs below 35–40% of take-home income. Going above 50% leaves little margin for emergencies, investments, or lifestyle expenses.
Does the calculator account for credit score?
No. Your credit score affects the interest rate you're offered. Use the rate from your actual loan offer for the most accurate result.