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Finance Calculators

Home Affordability Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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%
20 years
5 years30 years
Verified formula Private

Home price you can afford

₹54,45,798

Loan amount
₹44,45,798
Affordable EMI
₹40,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Home Affordability Calculator

The Home Affordability Calculator works out your home price you can afford, along with 2 related figures in an instant. Enter net monthly income, max % of income for emi and home loan interest rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the net monthly income.
  2. Enter the max % of income for emi.
  3. Enter the home loan interest rate.
  4. Set the loan tenure.
  5. Enter the down payment.
  6. Read off your home price you can afford, together with loan amount and affordable emi — the calculator updates automatically, with no button to press.

Formula

The Home Affordability Calculator uses the formula:

Home price you can afford = (Net monthly income × Max % of income for EMI ÷ 100) × (1 - pow(1 + Home loan interest rate ÷ 100 ÷ 12, -(Loan tenure × 12))) ÷ (Home loan interest rate ÷ 100 ÷ 12) + Down payment

Worked example

For example, with net monthly income of ₹100,000, max % of income for emi of 4%, home loan interest rate of 9% and loan tenure of 20 years and the other inputs, the home price you can afford is ₹54,45,798.

Inputs used
Net monthly income ₹100,000
Max % of income for EMI 4%
Home loan interest rate 9%
Loan tenure 20 years
Down payment ₹1,000,000
Results
Home price you can afford ₹54,45,798
Loan amount ₹44,45,798
Affordable EMI ₹40,000

Results are estimates for educational use, not professional advice.

Key terms explained

Down payment
The upfront portion of a purchase price you pay yourself, with the rest financed by a loan.
EMI
Equated Monthly Instalment — the fixed monthly payment on a loan covering both interest and principal.
Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).
Tenure
The length of time over which a loan is repaid or an investment is held.

Frequently asked questions

Start with an affordable EMI, usually up to about 40% of net income, then work out the loan it supports and add your down payment. The calculator does this for you.

Lenders cap your fixed obligations as a share of income (FOIR). Keeping EMIs near 40% of net income leaves room for other expenses.

Yes. It raises the price you can afford for the same EMI and reduces the loan, often improving your interest rate too.

No. Budget separately for stamp duty, registration, taxes and moving costs, which can add several percent to the purchase.

The Home Affordability Calculator uses the formula: Home price you can afford = (Net monthly income × Max % of income for EMI ÷ 100) × (1 - pow(1 + Home loan interest rate ÷ 100 ÷ 12, -(Loan tenure × 12))) ÷ (Home loan interest rate ÷ 100 ÷ 12) + Down payment. For example, with net monthly income of ₹100,000, max % of income for emi of 4%, home loan interest rate of 9% and loan tenure of 20 years and the other inputs, the home price you can afford is ₹54,45,798.

Enter the net monthly income. Enter the max % of income for emi. Enter the home loan interest rate. Set the loan tenure. Enter the down payment. Read off your home price you can afford, together with loan amount and affordable emi — the calculator updates automatically, with no button to press.

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