Loan EMI Calculator.

How much you can borrow on a home loan depends on your gross monthly income, existing debt obligations, interest rate, and chosen loan tenure. Most mortgage lenders apply a Debt-to-Income (DTI) or Fixed Obligation to Income Ratio (FOIR) between 35% and 45% to ensure your monthly payment remains affordable. For instance, with a monthly income of $7,000 / ₹1,20,000 and minimal existing debt, you can typically afford a monthly EMI of around $2,500–$2,800 / ₹45,000–₹50,000, which supports a home loan of approximately $350,000 to $450,000 / ₹50 to ₹60 Lakhs over a 25 to 30 year repayment period.

Lenders evaluate your borrowing capacity using your net disposable income, credit score, down payment amount, and debt obligations. They subtract your existing commitments from your income to determine your maximum allowable monthly EMI. Our loan calculator allows you to test different loan amounts, interest rates, and tenures to find the maximum loan principal you can comfortably service.

A widely accepted financial guideline is the "28/36 rule": no more than 28% of your gross monthly income should go toward housing expenses (mortgage EMI, taxes, and insurance), and no more than 36% should go toward total debt service. To calculate how much house you can afford: calculate your max affordable monthly EMI on our loan calculator, add your saved down payment (typically 10%–20%), and keep a 3–6 month emergency fund intact.

Any extra payment made above your regular EMI directly reduces your loan principal. Because interest is recalculated on the reduced principal every month, prepayments dramatically lower your total interest cost and shorten your loan term. Use the Prepayment Analysis slider in our Loan EMI Calculator to see how paying even $50 to $200 extra per month can save thousands in interest.