Formula
Eligible EMI = (Surplus Income x FOIR%) - Existing EMIs; Loan Eligibility is derived from EMI, tenure, and interest rate.
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Calculator Guide
How to Calculate Home Affordability
Understand how income, existing EMIs, expenses, and interest rate assumptions determine your safe property budget.
Example Calculation
- Monthly Income: Rs 2,00,000
- Monthly Expenses: Rs 60,000
- FOIR: 45%
Estimated eligible EMI: around Rs 48,000 to Rs 55,000
Investment Insights
- Keep buffer for lifestyle inflation and emergency reserves.
- Do not push eligibility to 100% of lender limits.
- Compare affordability with total acquisition cost, not only ticket size.
FAQs
Is affordability and loan eligibility the same?
Not always. Eligibility is lender-calculated, while affordability should include your savings goals and risk comfort.
Should bonuses be included in affordability?
Use conservative assumptions and primarily consider stable monthly income for EMI planning.
What FOIR is considered safe?
A practical range is 35-45% for most salaried buyers, depending on household obligations.