Home Affordability Calculator
Find the maximum home price you can afford based on income and debts.
📐 28/36 Rule: Max EMI = min(28% of income, 36% of income − existing debts) · Max Home Price = Max Loan (from EMI) + Down Payment
The home affordability calculator tells you how much house you can afford based on your income, existing debts, down payment savings, and the current home loan interest rate. It uses the 28/36 rule and RBI-guided EMI-to-income ratios to assess whether a home purchase is financially sustainable. It also shows how much loan you qualify for and what property price range is accessible.
📋 How to Use This Calculator
Enter your monthly gross income (or household combined income), existing EMI obligations (car loan, personal loan, credit card minimums), available down payment, preferred loan tenure, and current home loan interest rate. The calculator shows maximum affordable home price, recommended EMI, and the trade-off between a larger home with higher EMI vs. starting smaller and upgrading later.
💡 Key Facts & Information
Bank affordability guidelines: Most Indian banks lend up to 75–90% of property value (LTV). EMI-to-income ratio: banks typically cap at 40–50% of net monthly income. Practical rule: total EMI should not exceed 40% of monthly take-home income. Down payment: minimum 10% (properties under ₹30 lakh), 20% (₹30–75 lakh), 25% (above ₹75 lakh). Income used by banks: salary employees — gross salary less standard deductions. Self-employed — average net profit of last 3 ITR years. Tax benefit on home loan: Section 24(b) — interest deduction up to ₹2 lakh per year. Section 80C — principal repayment deduction up to ₹1.5 lakh within overall 80C limit.