Home affordability calculator
See how much home your income and savings can buy, using the same limits banks apply: an EMI cap on your salary and the RBI's loan-to-value rules.
- Home loan
- ₹58.57 L
- Monthly EMI
- ₹50.83 K
- From your savings
- ₹25.00 L
- Most EMI you can take on
- ₹75.00 K
Indicative only. Banks also look at your age, credit score, job stability and the property itself before deciding the final amount.
How the calculator works
Banks don't start from the price of the flat you like. They start from your pay slip. The first question is how much EMI your income can carry, and most lenders cap all your EMIs together at about half of your take-home pay. Someone earning ₹1.5 lakh a month with no other loans can usually take an EMI of up to ₹75,000. At 8.5% over 20 years, that EMI supports a loan of roughly ₹86 lakh.
The second limit is the loan-to-value ratio set by the RBI. A bank will lend up to 90% of the property value for homes up to ₹30 lakh, 80% between ₹30 lakh and ₹75 lakh, and 75% above that. The rest, plus stamp duty and registration, has to come from your own savings. The calculator checks both limits and shows the higher of the two prices you can actually close.
Why your savings matter as much as your salary
A common surprise for first-time buyers is that a good salary alone isn't enough. On a ₹1 crore flat the bank will lend at most ₹75 lakh, so you need ₹25 lakh for the down payment and another ₹6–8 lakh for stamp duty, registration and small charges. If your savings are thin, the price you can buy at falls, even if the EMI looks easy.
That is why the calculator keeps about 7% aside for these costs by default. The exact figure depends on your state: stamp duty ranges from about 4% to 8% of the property value. You can switch it off to compare, but budget for it before you pay a booking amount.
Ways to raise your budget
Adding an earning co-applicant, usually a spouse or parent, is the quickest lever, because the bank then counts both incomes. Closing a car or personal loan before you apply frees up EMI room. A longer tenure lowers the EMI too, though you pay more interest overall, so keep it to what you need and prepay when you can.
Finally, a credit score above 750 tends to get you the lender's best rate. Even half a percentage point off the rate lets the same EMI support a noticeably bigger loan.
Frequently asked questions
How much house can I afford on a ₹1 lakh salary?
With no other loans, banks usually allow an EMI of about ₹50,000 on a ₹1 lakh monthly take-home salary. At 8.5% over 20 years that supports a loan of around ₹57–58 lakh. With ₹15–20 lakh of your own savings, a home in the ₹65–75 lakh range is realistic once stamp duty is set aside.
What is FOIR in a home loan?
FOIR, the fixed obligation to income ratio, is the share of your monthly income that goes into EMIs. Most lenders keep it at or below 50%, and some allow 55–65% for higher incomes. Existing EMIs count against it, which is why closing small loans before applying helps.
Can I get a 100% home loan?
No. RBI rules cap home loans at 90% of the property value for homes up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. Stamp duty and registration are generally not part of the property value for this purpose, so plan to pay them yourself.
Does the calculator include stamp duty?
Yes. By default it sets aside about 7% of the price for stamp duty, registration and small charges, paid from your savings. Untick the box to see the figure without it.