Finance calculators

Home Loan Eligibility Calculator

Updated Sep 3, 2026 By Jehan Wadia
Rate Formulas
Your Financial Profile
₹10 Thousand₹5 Lakh
₹0₹1 Lakh
Include any existing loan EMIs (car loan, personal loan, credit card, etc.)
21 Yrs65 Yrs
Employment Type
6%20%
1 Yr30 Yrs
Maximum Eligible Loan Amount
₹0
 
Monthly EMI (on eligible loan)
₹0
 
Effective Available EMI
₹0
 
Total Interest Payable
₹0
 
Total Amount Payable
₹0
 
Principal vs Interest Breakdown

Step-by-Step Solution
Amortization Schedule
Amortization schedule showing opening balance, principal paid, interest paid, total payment and closing balance for each period of the eligible home loan.
Year Opening Balance Principal Paid Interest Paid Total Payment Closing Balance

Introduction

The Home Loan Eligibility Calculator shows you how big a home loan you can get. You enter your monthly income, your current EMIs, your age, your job type, the interest rate, and how long you want to pay. The tool then tells you the maximum loan amount a bank may give you.

Banks use a rule called FOIR (Fixed Obligation to Income Ratio). It means only part of your income can go toward EMIs. This calculator uses 50% for salaried people and 45% for self-employed people. It also caps your loan tenure based on your age, since most lenders expect the loan to end by age 60.

You get more than just one number. The calculator shows your monthly EMI, the total interest you will pay, and the total amount you will repay. A donut chart splits your payment into principal and interest. A step-by-step section shows the math behind each result. You can also open a full amortization schedule to see how your balance drops each month or each year.

Move any slider and the results update right away. Use it to plan your home budget, compare interest rates, or see how paying off an old loan can raise your home loan eligibility.

How to use our Home Loan Eligibility Calculator

Enter your monthly income, current EMIs, age, job type, interest rate, and loan tenure. The calculator shows the maximum home loan you can get, your monthly EMI, total interest, total amount payable, a chart, and a full amortization schedule.

Gross Monthly Income: Type your total pay each month before tax and deductions. You can also drag the slider. Higher income means higher home loan eligibility.

Other Monthly EMI Obligations: Add up the EMIs you already pay each month, like a car loan, personal loan, or credit card. Enter the total. Put 0 if you have none.

Applicant Age: Enter your age in years. Age sets the longest tenure you can pick, since the loan should end by age 60.

Employment Type: Pick Salaried or Self-Employed. Salaried applicants get a 50% FOIR, and self-employed get 45%. FOIR is the share of your income that can go to EMIs.

Annual Interest Rate: Type the yearly home loan rate your bank offers, such as 8.5%. A lower rate raises the loan amount you qualify for.

Loan Tenure: Choose how many years you want to repay the loan. A longer tenure lowers the EMI and raises eligibility, but adds more total interest.

Calculate and Reset: Results update as you type, but you can click Calculate to refresh them. Click Reset to go back to the sample values. Use the Yearly or Monthly buttons to change the amortization table view.

What Is Home Loan Eligibility?

Home loan eligibility is the largest loan amount a bank is willing to give you. Banks look at how much money you earn each month, how much you already pay for other loans, your age, and how long you want to repay. They want to be sure you can pay the EMI every month without trouble.

How Banks Decide Your Loan Amount

Most Indian banks use a rule called FOIR (Fixed Obligation to Income Ratio). It sets a limit on how much of your monthly income can go toward all EMIs put together.

  • Salaried: about 50% of gross monthly income can go to EMIs.
  • Self-employed: about 45%, because income can change month to month.

The bank first finds your EMI limit, then takes away your current EMIs (car loan, personal loan, credit card). What is left is the EMI you can afford for a home loan. That EMI is then turned into a loan amount using the interest rate and the loan tenure.

A Simple Example

Say you earn ₹50,000 a month and are salaried. Your EMI limit is ₹25,000 (50%). If you already pay ₹5,000 in other EMIs, you have ₹20,000 left for a home loan EMI. At 8.5% interest for 20 years, that EMI can support a loan of about ₹23 lakh.

Why Age and Tenure Matter

Banks usually want the loan to finish by the time you retire, often around age 60. So a 30-year-old can pick up to 30 years, but a 45-year-old may only get 15 years. A longer tenure means a smaller EMI, so you can borrow more. But you also pay much more interest over the full loan.

What Changes Your Eligibility

  • Higher income: raises your EMI limit and your loan amount.
  • Fewer existing EMIs: closing a small loan can free up a lot of room.
  • Lower interest rate: the same EMI buys a bigger loan.
  • Longer tenure: more loan now, more interest later.
  • Good credit score: a score above 750 helps you get better rates.
  • Co-applicant: adding a spouse's income can lift the limit.

Things to Keep in Mind

Eligibility is not the same as the money you get for the house. Banks fund only about 75% to 90% of the property price, so you still need a down payment. You also pay stamp duty, registration, and processing fees from your own pocket. Final approval depends on your credit report, job record, and the property papers, so the real offer can differ from any estimate.


Formulas used

Maximum total EMI capacity (FOIR)
\text{EMI Capacity} = \text{Gross Monthly Income} \times \text{FOIR}, \quad \text{FOIR} = \begin{cases} 0.50 & \text{Salaried} \\ 0.45 & \text{Self-Employed} \end{cases}
Available EMI after existing obligations
\text{Available EMI} = \text{EMI Capacity} - \text{Other EMIs}
Monthly interest rate and number of instalments
r = \frac{\text{Annual Rate}}{12 \times 100}, \qquad n = \text{Tenure (years)} \times 12
Maximum eligible loan amount (present value of available EMI)
L = \text{Available EMI} \times \frac{1 - (1 + r)^{-n}}{r}
EMI on the eligible loan
\text{EMI} = L \times \frac{r(1 + r)^n}{(1 + r)^n - 1}
Total amount payable and total interest
\text{Total Payable} = \text{EMI} \times n, \qquad \text{Total Interest} = \text{Total Payable} - L
Maximum tenure capped by applicant age (retirement at 60)
n_{\max} = \max\left(1,\ \min(30,\ 60 - \text{Age})\right)
Amortization schedule (per month k)
I_k = B_{k-1} \times r, \quad P_k = \text{EMI} - I_k, \quad B_k = B_{k-1} - P_k, \quad B_0 = L

Frequently asked questions

How much salary do I need for a 50 lakh home loan?

At 8.5% for 20 years, the EMI on ₹50 lakh is about ₹43,400. Banks let about 50% of your gross pay go to EMIs, so you need roughly ₹87,000 a month if you have no other loans.

If you already pay ₹10,000 in other EMIs, you would need about ₹1.07 lakh a month instead.

How many times my monthly salary can I get as a home loan?

At 8.5% interest for 20 years, most salaried people can borrow about 55 to 60 times their gross monthly income if they have no other EMIs.

  • Longer tenure (30 years) pushes it up to about 65 times.
  • Short tenure (10 years) drops it to about 38 times.
  • Existing EMIs pull the number down fast.

Do banks use gross salary or take-home salary for home loan eligibility?

Lenders start with your gross monthly income, but many also check your net take-home pay to be safe.

Fixed parts like basic pay, HRA and fixed allowances are always counted. Variable pay like bonus, overtime or incentives is often counted only in part, and only if you have shown it for two years.

What CIBIL score is needed for a home loan?

Aim for 750 or more. That gets you the best rates and the fastest approval.

  • 700 to 749: usually approved, but the rate may be higher.
  • 650 to 699: possible, often with a smaller loan or a co-applicant.
  • Below 650: most banks say no.

How much does adding a co-applicant increase home loan eligibility?

Both incomes are added together, so the EMI limit grows. If you earn ₹50,000 and your spouse earns ₹40,000, the bank works on ₹90,000 instead of ₹50,000. That can almost double the loan.

The co-applicant must be close family, like a spouse, parent or child. Both people are fully responsible for the EMI, and both can claim tax benefits if both own the home.

Does a credit card balance reduce home loan eligibility?

Yes. Lenders usually treat about 5% of your unpaid card balance as a monthly EMI. A ₹1 lakh balance counts as a ₹5,000 obligation, which can cut your loan by nearly ₹6 lakh.

Clearing your cards before you apply is one of the quickest ways to raise your eligibility.

How much does closing an existing loan raise my home loan amount?

Every ₹1,000 of EMI you free up adds about ₹1.15 lakh to your home loan at 8.5% for 20 years.

So closing a personal loan with an ₹8,000 EMI can lift your eligibility by roughly ₹9 lakh. Ask the lender for a closure letter and make sure it shows in your credit report.

How much down payment is needed for a home loan in India?

RBI caps how much a bank can lend against the property value (LTV):

  • Loan up to ₹30 lakh: bank funds up to 90%, you pay 10%.
  • ₹30 lakh to ₹75 lakh: up to 80%, you pay 20%.
  • Above ₹75 lakh: up to 75%, you pay 25%.

Stamp duty, registration and processing fees are extra and come from your own money.

Is a 20-year or 30-year home loan better?

With a ₹20,000 EMI at 8.5%, a 20-year loan gets you about ₹23 lakh and costs ₹25 lakh in interest. A 30-year loan gets you about ₹26 lakh but costs ₹46 lakh in interest.

So 10 extra years add only about 13% more loan, but nearly double the interest. Pick the longer tenure only if you need the lower EMI to qualify, then prepay when you can.

How much does a 1% higher interest rate cut my eligibility?

About 7%. With ₹20,000 free for EMI over 20 years, an 8.5% rate supports a ₹23.05 lakh loan. At 9.5%, the same EMI supports only ₹21.46 lakh, a drop of nearly ₹1.6 lakh.

This is why comparing rates across two or three lenders is worth the effort.

Why do self-employed people get lower home loan eligibility?

Their income can change month to month, so banks use a lower FOIR of about 45% instead of 50%.

Lenders also use the profit shown in your ITR, not your total business turnover, and they usually average the last two or three years. Claiming heavy expenses to cut tax lowers that profit, and lowers your loan too.

Can I get a home loan at age 50?

Yes, but the tenure is short. Most banks want salaried loans to end by age 60, so a 50-year-old gets about 10 years. A short tenure means a bigger EMI, so the loan amount is smaller.

Some lenders stretch to age 65 or 70 for self-employed borrowers or if you add a younger earning co-applicant, which brings the tenure and the loan back up.

How do banks turn an EMI into a loan amount?

They work backwards from the EMI using the present value formula:

Loan = EMI × [1 − (1 + r)−n] ÷ r

Here r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. For example, ₹20,000 EMI at 8.5% for 240 months gives 20,000 × 115.24 = about ₹23.05 lakh.

What documents do banks ask for to check home loan eligibility?

Keep these ready:

  • Identity and address: PAN, Aadhaar, passport or voter ID.
  • Income (salaried): last 3 months' salary slips, Form 16, 6 months' bank statement.
  • Income (self-employed): ITR and financials for 2 to 3 years, business proof, bank statements.
  • Property: sale agreement, title papers, approved plan.