Input type
Real Estate
Home Affordability Calculator
Find out the maximum property price you can afford based on your income, savings, and loan eligibility.
Fast estimates
Clear breakdown
Planning friendly
Best for
Home buyers
Output
Max property budget
Enter calculator inputs
Provide values to generate an instant estimate.
Before you calculate
- Include all sources of income — salary, rental income, freelancing.
- Down payment is typically 10–30% of property value for home loans.
- Lower existing EMIs increase how much you can borrow.
Understanding Home Affordability
Home affordability depends on your income, existing debts, available savings for down payment, and prevailing interest rates. This calculator gives you a realistic budget to plan your home purchase.
1. Turn income and EMIs into a safe budget
For home affordability, focus on how much EMI your income can support after existing obligations, not just the maximum loan the bank is willing to offer. Use the available EMI and total interest figures to choose a property budget that leaves room for savings, emergencies and future goals.
Re-run the calculator with different tenures, rates and down payment levels to see how each combination changes your safe price range.
2. Plan for all home-buying costs
Remember that property price is only one part of the outlay. Stamp duty, registration, interior work, shifting costs and initial maintenance can easily add 8–12% on top. Use the output here together with the stamp duty calculator so you do not over-commit.
How FOIR converts income to an affordable loan amount
FOIR (Fixed Obligation to Income Ratio) determines how much of your gross income can go to loan EMIs. At a 50% FOIR cap, a household earning ₹1,20,000 monthly can service EMIs of up to ₹60,000 — after subtracting existing EMIs such as car loans or personal loans. This ceiling EMI is then converted to a maximum loan amount using the interest rate and tenure you choose.
How down payment determines total property budget
Banks fund up to 75–90% of property cost (depending on loan size), requiring 10–25% as down payment. Add your available down payment to the eligible loan amount to get the total property budget. On a ₹1 crore property, you need ₹20–25 lakh as down payment plus the loan. Stamp duty and registration (5–10%) are separate — budget an additional ₹5–10 lakh for these.
How a 0.5% rate change affects your affordable budget
Small changes in interest rate significantly affect how much you can borrow for the same EMI. On a ₹60,000 EMI over 20 years, the difference between 8.5% and 9% is roughly ₹3–4 lakh in eligible loan. Over the buying cycle from 2020–2024 when rates moved from 6.5% to 9.5%, the same ₹60,000 EMI could fund ₹95 lakh at 6.5% but only ₹70 lakh at 9.5%.
What banks evaluate beyond the budget calculation
This calculator gives income-based affordability. Actual loan approval also requires: credit score 750+, employment stability (2+ years salaried; 3+ years ITR for self-employed), property legal clearance, and the bank's internal LTV policy for that segment. Get a pre-approval letter before shortlisting properties to understand the real approved amount.
Frequently Asked Questions
How much house can I afford on my salary?
A useful rule is 3–5× annual household income, but the accurate method is EMI-based: maximum EMI = (monthly gross income × FOIR limit) − existing EMIs. Convert that EMI to a loan amount at the current rate and chosen tenure, then add available down payment for total budget.
What is FOIR and why does it matter?
FOIR (Fixed Obligation to Income Ratio) is the fraction of monthly gross income committed to EMIs. Lenders cap it at 40–60%. If you earn ₹1,00,000 monthly and already pay ₹15,000 in car loan EMI, your available FOIR for a home loan is ₹35,000–₹45,000. Reducing existing obligations before applying raises home loan eligibility.
Are stamp duty and registration included in the home loan?
No. Banks fund only the property cost — 75–90% depending on loan size. Stamp duty (4–7% in most states), registration fee (1%), and GST on under-construction properties (5%) must come from your own savings. For a ₹75 lakh property, additional mandatory costs can be ₹5–8 lakh — budget for this separately from your down payment.
What is a realistic down payment amount to save?
Plan for at least 20% of the target property price — this covers the minimum 10–25% the bank requires plus a buffer for stamp duty, registration, and fit-out. For an ₹80 lakh apartment in a tier-1 city, having ₹20–25 lakh in savings before applying is a practical benchmark.