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
| FOIR | Affordable EMI | Loan 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
- 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?
Is take-home or gross income used?
Do credit card dues count as existing EMIs?
Does the EMI affordability result guarantee I will get the loan?
Further reading
Find out how much home loan you can get with a ₹50,000 net monthly salary. View maximum sanction amounts across 15, 20, 25, and 30-year tenures.
Calculate the exact monthly EMI and total interest for a ₹1 Lakh personal loan at 10.5% to 14% interest across 1, 2, 3, 4, and 5-year tenures.
Calculate monthly EMI and total interest for a ₹5 Lakh car loan at 8.75% to 10.5% interest across 3, 5, and 7-year tenures. Compare bank rates.
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Reviewed by Pradipta Ray, MBA (Finance) · Updated