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Home Loan Eligibility Calculator
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Find out how much home loan you qualify for before you apply. Uses the same FOIR method banks use, with co-applicant income and existing EMI adjustments.
You are eligible for up to
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Enter your details above.
Estimate only — banks also check credit score, employment type, and property value. Looking for Sharia-compliant financing? Try our Sharia mortgage calculator.
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What is FOIR?
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that banks allow to go toward all EMIs combined. Most banks use 40–50%. If your income is ₹80,000 and FOIR is 50%, your total EMIs can't exceed ₹40,000 — minus what you already pay, the rest can go to your home loan EMI.
How to increase your eligibility
- Add a co-applicant: a working spouse's income directly raises eligibility.
- Close small loans: clearing a car or personal loan EMI frees FOIR room.
- Choose a longer tenure: 25–30 years lowers the EMI, raising the eligible amount.
- Improve your credit score: 750+ unlocks better rates and easier approval.
FAQs
How is home loan eligibility calculated?
Banks use the FOIR method: they allow EMIs up to about 40–50% of your net monthly income after subtracting existing EMIs. The eligible loan is the amount whose EMI fits that budget at the given rate and tenure.
Does a co-applicant increase my home loan eligibility?
Yes. Adding a co-applicant's income raises the total income considered, which increases the EMI you can afford and therefore the loan amount.
Do existing EMIs reduce home loan eligibility?
Yes. Existing EMIs are subtracted from your affordable EMI first, so they directly reduce the home loan you qualify for.
Is this home loan eligibility calculator free?
Yes. It is 100% free with no signup required.
How does the interest rate affect my home loan eligibility?
Directly and strongly: your eligible loan is the EMI your income supports, converted into a lump sum at the current rate — so a 1% rate rise shrinks the eligible amount by roughly 10% for the same EMI, while a rate cut expands it. That's why eligibility quotes are rate-sensitive and expire fast. Lock down the rate discussion with your bank before finalizing a property budget, or a rate hike could price you out of a flat you already shortlisted.
How much does my credit score affect the loan?
A high score (750+) unlocks the best interest rates and smoother approval; a weak score means higher rates or outright rejection regardless of what the income math says. Check and clean up your credit report three to six months before applying.
Should I take the longest tenure to maximize eligibility?
It maximizes the loan amount but also the total interest — a 25-year loan can cost nearly double the principal in interest alone. Take the shortest tenure whose EMI fits comfortably, and prefer part-prepayments over extensions when you have surplus cash.
How banks calculate home loan eligibility
Banks answer one question: what EMI can you safely afford? They apply the FOIR (Fixed Obligation to Income Ratio, typically 40–60%): affordable EMI = monthly income × FOIR − existing EMIs. Then they run the amortization formula in reverse to convert that EMI into a maximum loan amount — and finally cap it by the property's loan-to-value limit (usually 75–90%) and your credit score.
The reverse-amortization formula: max loan = EMI × [((1+r)n − 1) ÷ (r(1+r)n)], where r = monthly interest rate and n = tenure in months. Every existing EMI — car loan, personal loan, credit-card minimums — is subtracted before the conversion, which is why clearing small debts can raise eligibility dramatically.
Worked example: $8,000/month income, FOIR 50%, existing EMI $500: affordable EMI = 8000 × 0.50 − 500 = $3,500. At 8% for 20 years: r = 0.006667, n = 240, (1.006667)240 ≈ 4.927; factor = (4.927 − 1) ÷ (0.006667 × 4.927) ≈ 119.55. Max loan ≈ 3500 × 119.55 ≈ $418,400.
Practical tips: kill a car loan before applying — removing a $400 EMI at 50% FOIR can add ~$95,000 to eligibility, far more than a small raise would. Longer tenure raises the eligible amount but roughly doubles total interest. Limitation: income math is only one gate — credit history, employer stability, and the bank's own property valuation can all shrink the final offer.
LTV caps and the prepayment lever: banks also cap loans by loan-to-value — typically 75–90% of the property's assessed value (not the price you agreed), so a ₹50L flat might only support a ₹40–45L loan regardless of your income math; the down payment covers the rest plus stamp duty and registration. Once borrowed, prepayment is the most underused lever: on a 20-year loan, one extra EMI per year (just 8.3% more payment) can cut ~5 years off the tenure and save ~25% of total interest, because early principal destruction compounds in your favor — the mirror image of the amortization front-loading. Most floating-rate home loans in India carry no prepayment penalty (RBI-mandated), making this free money. The strategic order: build the emergency fund first, then prepay the highest-rate loan you hold — which is often not the home loan, but a personal loan or credit card at 2–3× the rate.