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EMI Affordability Calculator

Lenders cap your total EMIs at a share of your monthly income. Enter your income, the EMIs you already pay and the loan terms you expect, and this calculator estimates the EMI headroom you have and the loan it would support.

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Calculator and results

On a ₹1,00,000 monthly income with ₹10,000 of existing EMIs, you can afford an EMI of ₹40,000 at 50% FOIR, which supports a loan of about ₹18,82,615 at 10% over 5 years.

₹
₹

All loan instalments you already pay each month.

%
%

Share of income lenders allow towards all EMIs. 50% is a common benchmark.

Affordable EMI

₹40,000

at 50% FOIR

Estimated loan amount

₹18,82,615

over 5 years

EMI budget

₹50,000

Existing EMIs

₹10,000

At different FOIR limits

Affordable EMI and loan amount at different FOIR limits
FOIRAffordable EMILoan amount
40%₹30,000₹14,11,961
50%₹40,000₹18,82,615
60%₹50,000₹23,53,268

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Affordable EMI

₹40,000

at 50% FOIR
An estimate for planning only. It is not a loan offer, an eligibility check or financial advice.
What it is:
An estimate of the EMI and loan an income can support.
What it calculates:
The EMI headroom left after existing obligations, and the loan that EMI would service.

Key Assumptions

  • Uses FOIR, the share of income lenders allow towards all EMIs.
  • 50% FOIR is a common benchmark, not a rule.
  • Credit score, employment type and age are not modelled.

How does the EMI Affordability Calculator work?

The calculation uses FOIR, the fixed obligations to income ratio: the share of your monthly income that lenders allow to go towards all EMIs put together. 50% is a common benchmark; individual lenders set their own limit, often between 40% and 60%.

Your EMI headroom is the FOIR budget minus the EMIs you already pay. The loan amount is then derived by running the EMI formula backwards at the rate and tenure you enter.

This is an estimate for planning, not an offer or an eligibility decision. Lenders also weigh credit score, employment type, age and the asset being financed.

EMI Affordability Calculator formula

Affordable EMI = (income x FOIR%) - existing EMIs; P = EMI x ((1+r)^n - 1) / (r x (1+r)^n)

FOIR%
= share of income allowed towards all EMIs
P
= loan amount that EMI can service
r
= monthly interest rate
n
= tenure in months

EMI Affordability Calculator: worked example

₹1,00,000 monthly income, ₹10,000 of existing EMIs, 10% for 5 years

EMI budget at 50% FOIR
₹50,000
Less existing EMIs
₹10,000
Affordable EMI
₹40,000
Loan that EMI supports
₹18,82,615
Total interest over 5 years
₹5,17,385

EMI Affordability Calculator: frequently asked questions

What is FOIR?
Fixed obligations to income ratio: the percentage of your monthly income that goes towards all loan EMIs. Lenders use it to judge whether you can take on another instalment.
Is take-home or gross income used?
Most lenders work off net take-home income. Enter your in-hand monthly salary for a realistic number.
Do credit card dues count as existing EMIs?
Converted card EMIs do. A revolving balance is usually treated separately, but heavy card usage can still affect your credit profile and the limit a lender offers.
Does the EMI affordability result guarantee I will get the loan?
No, the affordability figure is an estimate based on income and existing EMIs only. Eligibility also depends on your credit history, job stability, age and the lender's own policy.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated