Home Affordability Calculator — How Much House Can You Afford?

Reviewed by · AI Property Advisor · Last updated 2026-05-23

Affordability Calculator tells you the maximum property price you can comfortably target based on your monthly income, existing EMI commitments and available down payment. Uses the standard 40% FOIR cap and 80% LTV assumption — the same constraints lenders use to size your home-loan sanction.

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How do I use the Affordability?

  • Inputs: monthly income, existing EMIs, down payment
  • Output: max loan, max property price, indicative EMI
  • Uses 40% FOIR cap (standard lender rule)
  • 80% LTV assumption (20% own funds)
  • Pair with Loan Advisor to lock the actual bank

How does the Affordability compare to similar tools?

FeatureAffordability (this page)EMI CalculatorLoan AdvisorTax Calculator
Primary outputMax property priceMonthly EMIBank shortlist
Best forHow much can I afford?What will my EMI be?Which bank should I pick?
India-specific40% FOIR + existing EMIsBank rates8 banks compared

What questions does the Affordability answer?

How much house can I afford on a ₹1 lakh monthly salary?

At 40% FOIR, 8.5% interest and 20-year tenure: ~₹46 lakh home loan + 20% down payment = ~₹57 lakh property. Subtract any existing EMIs from the affordability.

What is FOIR and why is it 40%?

Fixed Obligation to Income Ratio = (All EMIs ÷ Net monthly income) × 100. Lenders cap at 40–50% so you have enough buffer for living expenses and unexpected costs.

How much down payment should I have?

Minimum 20% of property cost. Adding 10–15% extra reduces EMI burden meaningfully and improves loan-approval odds with a sub-prime credit profile.

Can I include my spouse income for higher affordability?

Yes — a joint home loan with both incomes can almost double the eligibility, and both partners get tax deductions on interest and principal.

Do banks consider rental income and bonuses?

Rental income: 70% counted if reflected in ITR. Bonuses: averaged over 2–3 years, with a 50% haircut. Variable pay is treated conservatively.

How much should EMI be vs my salary?

Aim for EMI ≤ 35% of net take-home, leaving 5% buffer below the 40% lender cap. This keeps lifestyle, savings and emergency fund intact.

Should I buy now or wait to save more down payment?

If rent + savings of waiting ≥ 1 year of EMI savings, wait. Otherwise buy — property prices typically appreciate 6–8%/year, outpacing additional savings on a fixed salary.

Are there hidden costs beyond the property price?

Yes — budget another 7–10% for stamp duty + registration, 1–2% brokerage, society move-in deposits, registration cost and interior/move-in fit-out.

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