How much home can you actually afford?
Banks lend on a formula, not a feeling. Enter your real numbers and see the honest budget you can carry without stretching your life thin.
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How the 40% rule works
"Affordability" gets used loosely, but lenders in India apply a fairly consistent formula behind the scenes: your total monthly loan obligations, this one plus anything else you're already paying off, generally can't exceed 40–50% of your net take-home income. That single ratio, known as FOIR, is what actually caps the loan a bank will approve, far more than any feeling of what you can "manage." This tool works backward from your income, existing EMIs, savings and the loan terms you'd realistically get, to show the property value you can carry comfortably — not just the value a bank might technically sanction. It also separates the loan amount from the upfront cash you'll need for stamp duty, registration and other charges, since that distinction is where a lot of budgets quietly fall apart.
Why 40% of income?
Most Indian lenders cap your total EMI obligations (this loan plus any existing ones) at around 40–50% of net monthly income — the FOIR, or Fixed Obligation to Income Ratio. Staying near 40% keeps room for living costs, savings and emergencies.
What this doesn't include
Your loan covers the property, but stamp duty, registration and GST are paid upfront in cash. Budget an extra 8–12% of the property value for these. Use the main cost calculator to see them in detail.
Down payment matters
A bigger down payment means a smaller loan, lower EMI, and often a better interest rate. Banks typically finance up to 75–90% of the property value, so you need at least 10–25% ready.
Is a longer tenure better?
A longer tenure lowers your monthly EMI but increases total interest paid. A 20-year loan is a common balance; run both and compare the lifetime cost.