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Home Loan Eligibility

Maximum loan a lender will sanction from your income, existing obligations, FOIR and the property LTV cap.

Loans

Inputs

Results

Eligible loan amount
₹4,800,000
Limited by LTV cap
EMI capacity available
₹45,000
Income-based eligibility
₹5,092,164
LTV ceiling
₹4,800,000
Own contribution needed
₹1,200,000
Excludes stamp duty and registration
Obligations to income
50.0%

Formula

  • Available EMI = (Net income × FOIR%) − existing obligations
  • r = rate / 12 / 100 ; n = years × 12
  • Eligible loan = EMI × [(1 + r)ⁿ − 1] / [r × (1 + r)ⁿ]
  • LTV cap = Property value × LTV%
  • Sanction = min(Eligible loan, LTV cap)

Lenders cap the share of income that can service debt — the Fixed Obligation to Income Ratio (FOIR), called DTI outside India. Whatever EMI capacity remains after existing obligations is converted into a principal using the present-value-of-annuity formula, the inverse of the EMI equation. The sanction is then limited by the loan-to-value ceiling on the property, so the binding constraint is whichever is smaller.

Step-by-step Calculation

  1. 1.Total considered income120,000 + 0₹120,000
  2. 2.FOIR allowance120,000 × 50%₹60,000
  3. 3.EMI capacityallowance − 15,000₹45,000
  4. 4.Present value of that EMIEMI × ((1+r)ⁿ − 1) / (r(1+r)ⁿ)₹5,092,164
  5. 5.LTV limit6,000,000 × 80%₹4,800,000
  6. 6.Sanctionable amountmin(income-based, LTV)₹4,800,000

How to use this calculator: Home Loan Eligibility

Maximum loan a lender will sanction from your income, existing obligations, FOIR and the property LTV cap. The example below is calculated by this page's real engine from the displayed inputs.

  1. 1Confirm that the Home Loan Eligibility matches the quantity or design check you need.
  2. 2Enter Net monthly income, Other monthly income (rent, bonus avg.), and Existing monthly EMIs / obligations using the units printed beside each field.
  3. 3Select the applicable Currency options; these choices change the calculation method or factors.
  4. 4Calculate, then follow the substituted equations in the worked example and compare the result with any stated limit.
  5. 5Read the assumptions, warnings and cited references before using the result for a financial, medical or engineering decision.

Input guide and example values

Use values from the same measurement basis and time period. Conditional fields appear only when the related option is selected.

InputExample valueWhy it matters
Currency₹ Indian Rupee (INR)Select the option that matches the real installation or scenario.
Net monthly income120000Measured or known net monthly income used by the calculation engine.
Other monthly income (rent, bonus avg.)0Optional input; leave the supplied default only when it matches your case.
Existing monthly EMIs / obligations15000Measured or known existing monthly emis / obligations used by the calculation engine.
FOIR / DTI cap allowed by lender50 %Measured or known foir / dti cap allowed by lender used by the calculation engine.
Interest rate8.75 % p.a.Measured or known interest rate used by the calculation engine.
Tenure20 yearsMeasured or known tenure used by the calculation engine.
Property value (optional)6000000Optional input; leave the supplied default only when it matches your case.
Maximum LTV allowed80 %Measured or known maximum ltv allowed used by the calculation engine.

Formula inputs & variables for Home Loan Eligibility

These are the named quantities used by this calculator. When the source formula does not define a mathematical symbol, OneCalcApp keeps the real input label instead of inventing one.

Variable / inputUnitMeaning in this calculation
Currency—Select the option that matches the real installation or scenario.
Net monthly income—Measured or known net monthly income used by the calculation engine.
Other monthly income (rent, bonus avg.)—Optional input; leave the supplied default only when it matches your case.
Existing monthly EMIs / obligations—Measured or known existing monthly emis / obligations used by the calculation engine.
FOIR / DTI cap allowed by lender%Measured or known foir / dti cap allowed by lender used by the calculation engine.
Interest rate% p.a.Measured or known interest rate used by the calculation engine.
TenureyearsMeasured or known tenure used by the calculation engine.
Property value (optional)—Optional input; leave the supplied default only when it matches your case.

How the Home Loan Eligibility works

The Home Loan Eligibility uses Currency, Net monthly income, Other monthly income (rent, bonus avg.), Existing monthly EMIs / obligations, FOIR / DTI cap allowed by lender, Interest rate, Tenure, Property value (optional), and Maximum LTV allowed to calculate Eligible loan amount, EMI capacity available, Income-based eligibility, LTV ceiling, Own contribution needed, and Obligations to income. Its engine applies Available EMI = (Net income × FOIR%) − existing obligations; the worked values below come from that same live calculation rather than a separately typed example.

With Currency ₹ Indian Rupee (INR), Net monthly income 120000, Other monthly income (rent, bonus avg.) 0, Existing monthly EMIs / obligations 15000, FOIR / DTI cap allowed by lender 50 %, Interest rate 8.75 % p.a., Tenure 20 years, Property value (optional) 6000000, and Maximum LTV allowed 80 %, the main worked-example result is Eligible loan amount = ₹4,800,000.

How each Home Loan Eligibility input is used

Currency

The Home Loan Eligibility worked example selects “₹ Indian Rupee (INR)”. Available choices include ₹ Indian Rupee (INR), $ US Dollar (USD), € Euro (EUR), £ Pound Sterling (GBP), and AED UAE Dirham. This selection may change the method or factor used by the engine, so choose the option that matches the real case.

Net monthly income

The Home Loan Eligibility worked example uses Net monthly income = 120000. This value is passed directly into the calculation, with an allowed minimum 1.

Other monthly income (rent, bonus avg.)

The Home Loan Eligibility worked example uses Other monthly income (rent, bonus avg.) = 0. This value is passed directly into the calculation, with an allowed minimum 0.

Existing monthly EMIs / obligations

The Home Loan Eligibility worked example uses Existing monthly EMIs / obligations = 15000. This value is passed directly into the calculation, with an allowed minimum 0.

FOIR / DTI cap allowed by lender

The Home Loan Eligibility worked example uses FOIR / DTI cap allowed by lender = 50 %. This value is passed directly into the calculation, with an allowed minimum 20 and maximum 75.

Interest rate

The Home Loan Eligibility worked example uses Interest rate = 8.75 % p.a.. This value is passed directly into the calculation, with an allowed minimum 0.1 and maximum 30.

Tenure

The Home Loan Eligibility worked example uses Tenure = 20 years. This value is passed directly into the calculation, with an allowed minimum 1 and maximum 35.

Property value (optional)

The Home Loan Eligibility worked example uses Property value (optional) = 6000000. This value is passed directly into the calculation, with an allowed minimum 0.

Maximum LTV allowed

The Home Loan Eligibility worked example uses Maximum LTV allowed = 80 %. This value is passed directly into the calculation, with an allowed minimum 40 and maximum 90.

Home Loan Eligibility formulas and result interpretation

Formula 1: relationship used

In the Home Loan Eligibility, Available EMI = (Net income × FOIR%) − existing obligations. The quantities in this relationship come from the named inputs or from an earlier calculation step shown in the worked example.

Formula 2: relationship used

In the Home Loan Eligibility, r = rate / 12 / 100 ; n = years × 12. The quantities in this relationship come from the named inputs or from an earlier calculation step shown in the worked example.

Formula 3: relationship used

In the Home Loan Eligibility, Eligible loan = EMI × [(1 + r)ⁿ − 1] / [r × (1 + r)ⁿ]. The quantities in this relationship come from the named inputs or from an earlier calculation step shown in the worked example.

Formula 4: relationship used

In the Home Loan Eligibility, LTV cap = Property value × LTV%. The quantities in this relationship come from the named inputs or from an earlier calculation step shown in the worked example.

Formula 5: relationship used

In the Home Loan Eligibility, Sanction = min(Eligible loan, LTV cap). The quantities in this relationship come from the named inputs or from an earlier calculation step shown in the worked example.

Eligible loan amount

For the displayed Home Loan Eligibility worked example, Eligible loan amount is ₹4,800,000. Limited by LTV cap Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

EMI capacity available

For the displayed Home Loan Eligibility worked example, EMI capacity available is ₹45,000. Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

Income-based eligibility

For the displayed Home Loan Eligibility worked example, Income-based eligibility is ₹5,092,164. Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

LTV ceiling

For the displayed Home Loan Eligibility worked example, LTV ceiling is ₹4,800,000. Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

Own contribution needed

For the displayed Home Loan Eligibility worked example, Own contribution needed is ₹1,200,000. Excludes stamp duty and registration Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

Obligations to income

For the displayed Home Loan Eligibility worked example, Obligations to income is 50.0%. Verify Currency, Net monthly income, and Other monthly income (rent, bonus avg.) and their units before relying on this output.

Home Loan Eligibility accuracy, checks and limitations

  • Home Loan Eligibility units check: confirm Currency, Net monthly income, Other monthly income (rent, bonus avg.), Existing monthly EMIs / obligations, FOIR / DTI cap allowed by lender (%), Interest rate (% p.a.), Tenure (years), Property value (optional), and Maximum LTV allowed (%) before calculating.
  • Home Loan Eligibility result check: compare Eligible loan amount, EMI capacity available, Income-based eligibility, LTV ceiling, Own contribution needed, and Obligations to income with the substituted formula steps and the displayed rounding precision.
  • Home Loan Eligibility: Treat the result as a mathematical estimate and separately verify input units, rounding rules and any conventions required for your use case.

Understanding the result

Read the main result together with supporting checks, assumptions, limits and intermediate values.

For a manual check, repeat the first equation, confirm the units and change one input at a time.

Common mistakes when using Home Loan Eligibility

  • Do not mix units for FOIR / DTI cap allowed by lender (%), Interest rate (% p.a.), Tenure (years). A unit mismatch changes the input magnitude even when the typed number looks reasonable.
  • Do not leave Currency on the default choice unless that choice matches the real scenario; the selected option can change the calculation path or factor.
  • Do not replace the displayed Available EMI = (Net income × FOIR%) − existing obligations relationship with a different convention without also changing the underlying assumptions; compare like-for-like methods when checking the result.
  • Do not treat Eligible loan amount = ₹4,800,000 from the worked example as a universal answer. It belongs to the displayed example inputs and must be recalculated for the actual case.

When the Home Loan Eligibility is useful

Home Loan Eligibility is designed for cases where Currency, Net monthly income, Other monthly income (rent, bonus avg.), Existing monthly EMIs / obligations are known and you need Eligible loan amount, EMI capacity available, Income-based eligibility. The page keeps the live calculator, calculation method and worked example together so the result can be checked instead of treated as a black-box number.

Use the calculator for the scope described by its inputs and notes. The displayed method is Available EMI = (Net income × FOIR%) − existing obligations. If the real project or decision needs factors that are not represented here, treat the result as an estimate and add the missing checks separately.

Currency and Net monthly income: what changes the answer

The worked example uses Currency = ₹ Indian Rupee (INR), Net monthly income = 120000, Other monthly income (rent, bonus avg.) = 0, Existing monthly EMIs / obligations = 15000. With those values, Eligible loan amount is ₹4,800,000. Changing an input should be interpreted according to that field's unit, range, option and hint rather than by the number alone.

For this calculator, the main input roles are: Currency: Select the option that matches the real installation or scenario. Available choices include ₹ Indian Rupee (INR), $ US Dollar (USD), € Euro (EUR), £ Pound Sterling (GBP). Net monthly income: Measured or known net monthly income used by the calculation engine. Other monthly income (rent, bonus avg.): Optional input; leave the supplied default only when it matches your case. Existing monthly EMIs / obligations: Measured or known existing monthly emis / obligations used by the calculation engine.

How to sanity-check a Home Loan Eligibility result

Start by confirming the entered values and units, then compare the substituted working with the displayed formula or calculation steps. Pay particular attention to Eligible loan amount, because it is the first worked-example output shown by the live engine.

Finally, compare the result with the assumptions, warnings and related calculators on this page. A nearby calculator can be useful as a cross-check when it measures the same workflow from a different input or output direction.

Next logical calculator

Continue with EMI Calculator

Useful next check because both tools use Currency, while EMI Calculator answers a different part of the same workflow.

Open EMI Calculator

Assumptions

  • • Net (take-home) income is used, not gross CTC.
  • • FOIR bands typically run 40–50% and tighten at lower incomes.
  • • Tenure is capped so the loan closes before retirement age.
  • • Stamp duty, registration and GST are not fundable and must come from own funds.

Money Tips

  • ◆Closing a small personal loan or credit-card EMI can lift eligibility by several lakh.
  • ◆Adding an earning co-applicant pools income and raises the FOIR ceiling.
  • ◆A longer tenure raises eligibility but increases lifetime interest — check the EMI calculator alongside.

Warnings

  • ▲Eligibility is not an approval: credit score, employer category and property/legal checks still apply.
  • ▲Do not plan a purchase at 100% of eligibility — leave headroom for rate rises.

References & Standards

RBI LTV norms (Master Direction on Housing Finance)FOIR / DTI underwriting practice

Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.

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