Calculate Your Home Loan Affordability (India)

Calculate your monthly EMI and check against the 40% income rule

Enter your loan amount, interest rate, and tenure into the EMI Calculator to find your exact monthly outgo. Indian banks use the FOIR (Fixed Obligation to Income Ratio) rule — they typically approve loans only when your total monthly debt obligations (including the new EMI) stay under 40–50% of your net monthly income. At current SBI home loan rates of 8.5–9% per annum, a ₹50 lakh loan over 20 years generates an EMI of approximately ₹43,000–₹45,000 per month. Try multiple combinations of loan amount and tenure to find the EMI level that comfortably fits your income. Reducing tenure from 20 to 15 years increases EMI by roughly 20% but cuts total interest paid by nearly 35%.

Tip: Run the calculation at a rate 1–1.5% higher than the current rate to stress-test whether you can still afford the EMI if rates rise during the loan tenure.

Get the full amortisation schedule for your home loan

The Home Loan EMI Calculator goes beyond the monthly EMI figure — it generates a year-by-year amortisation table showing exactly how much of each payment goes toward principal repayment vs interest. In the early years of a home loan, up to 75–80% of each EMI is interest. By the midpoint, the ratio shifts. This schedule is essential for two decisions: (a) when to make a partial prepayment — prepayments made in the first 5–7 years of a 20-year loan save dramatically more interest than prepayments in the final years, and (b) how much interest you'll declare for Section 24 tax deduction (up to ₹2 lakh per year on self-occupied property). The schedule also shows your outstanding principal at any point — useful if you plan to switch lenders for a better rate mid-loan.

Tip: Section 80C allows deduction of up to ₹1.5 lakh per year on principal repayment. Section 24 allows up to ₹2 lakh deduction on interest for self-occupied property. Get your amortisation schedule ready before tax filing.

See how interest compounds and the cost of delay

Use the Compound Interest Calculator to model two scenarios: (a) how much your down payment grows if invested instead of used for the loan — this shows the opportunity cost of a larger down payment, and (b) how much interest accumulates on the loan over time if you delay taking it. For instance, if property prices are rising at 6% per year and your loan interest is 8.5%, the mathematics of waiting are often worse than acting — but the compounding calculator makes this concrete. Also model the impact of a partial prepayment: if you invest ₹5 lakh in a partial prepayment vs keeping it in a fixed deposit at 7%, the compounding calculator shows the exact break-even point. This step converts abstract 'should I prepay' intuitions into calculated decisions.

Tip: Home loan interest is calculated on a monthly reducing balance — the Compound Interest Calculator helps model this accurately when comparing against flat-rate FD returns.

Verify the EMI fits your monthly budget across all obligations

Use the Budget Planner to map your complete monthly financial picture: income, fixed expenses (rent/EMI, utilities, insurance, SIP contributions), variable expenses (groceries, fuel, dining, subscriptions), and the new home loan EMI. This is the final sanity check — many people calculate that they can afford an EMI in isolation but don't account for the full stack of monthly obligations. Add your home loan EMI to your existing commitments and see your monthly surplus. A healthy surplus after EMI should be at least 20–25% of net income for emergency fund contributions, unexpected medical expenses, and continued investments. If the surplus drops below 10%, reconsider the loan amount or tenure before committing.

Tip: Don't forget one-time home purchase costs: registration (5–7% of property value), stamp duty, interior setup, and parking — these can total ₹5–15 lakh and are often funded from the same down payment pool.