Home Loan Eligibility Calculator: How Much Can You Borrow?

Know your number before you fall in love with a house A home loan eligibility calculator tells you the largest loan a lender is likely to approve, based on your income, your existing debts, the interest rate and the loan tenure. It takes about 30 seconds and gives you a realistic budget before you visit a single property. Most buyers do it the other way round. They pick a home, apply, and only then learn the bank will lend 20% less than they hoped. That gap is usually filled with stress, a rushed personal loan, or a lost booking amount. Home Loan EMI Calculator, Mortgage Calculator, Loan Amortization Calculator (link to whichever exist on the site) Quick answer: most lenders cap your total monthly debt payments (including the new home loan) at roughly 40–50% of your monthly income in India, and around 36–43% of gross income in the US. Your eligible loan is the amount whose monthly payment fits inside that cap, limited further by the down payment rules in your country. Enter your income, existing EMIs, interest rate and tenure in the Home Loan Eligibility Calculator on this page to see your number now. This guide explains exactly how that number is worked out, shows the formula, walks through two real examples, and lists the rules lenders follow in India, the US, the UK, Canada, Australia and the UAE. What home loan eligibility actually means Home loan eligibility is the maximum amount a lender will lend you, given how much you can safely repay each month. It is not the same as what you should borrow; it is the ceiling. Lenders look at it from two sides: • Repayment capacity: can your income comfortably carry the monthly payment (EMI in India, mortgage payment elsewhere) on top of your other loans? • Property value: how much of the home's price are they allowed to fund? The rest is your down payment. Your final eligible loan is the lower of the two. A high salary will not get you a 100% loan, and a big down payment will not help if your income cannot carry the payment. Checking eligibility early helps you to: • set a property budget that a bank will actually support • know how much down payment and closing cost cash to arrange • spot problems (a low credit score, too many existing loans) while there is still time to fix them • compare lenders, since each one applies slightly different limits 7 factors lenders use to decide your eligibility

1. Monthly income. Lenders use net (take-home) income in India and gross (pre-tax) income in the US, UK, Canada and Australia. Salaried income with payslips is the easiest to prove; self-employed borrowers usually need two to three years of tax returns.
2. Existing debts. Every running EMI or minimum payment (car loan, personal loan, credit card, student loan) is subtracted from what you can put toward the home loan. This is the factor most people underestimate.
3. Interest rate. A higher rate means a bigger monthly payment for the same loan, so the same income qualifies for a smaller loan. A 1% rise in rate can cut eligibility by roughly 7–9% on a 20–30 year loan.
4. Loan tenure. A longer tenure spreads the loan over more months and lowers the payment, which raises eligibility. The trade-off is far more total interest.
5. Credit score. A strong score (750+ CIBIL in India, 740+ FICO in the US) gets you approved faster and at a lower rate. A weak score can mean a lower loan amount, a higher rate, or rejection.
6. Age and retirement. Most lenders want the loan repaid by about age 60–70. A 45-year-old will usually get a shorter maximum tenure than a 28-year-old, and therefore a smaller loan.
7. Down payment and property value. Regulators cap the share of the price a lender can fund (the loan-to-value or LTV ratio). Whatever is not funded must come from your savings. Other things that help: a co-applicant with income, a stable job history, and an approved property with clean legal papers. The formula behind the calculator The calculator works in three steps: find the monthly payment you can afford, convert that payment into a loan amount, then check it against the down payment limit. Step 1: Find your maximum affordable monthly payment Lenders use a debt ratio. In India it is called FOIR (Fixed Obligation to Income Ratio). In the US, UK, Canada and Australia it is usually called DTI (Debt-to-Income ratio) or a debt service ratio. Maximum new payment = (Monthly income × allowed ratio) − existing monthly debt payments Example: income 1,00,000 a month, allowed ratio 50%, existing EMIs 10,000. Maximum new EMI = 50,000 − 10,000 = 40,000. Step 2: Turn that payment into a loan amount This is the standard EMI formula run in reverse: Loan amount = EMI × [(1 + r)^n − 1] ÷ [r × (1 + r)^n] Where: • EMI = the maximum monthly payment from Step 1 • r = monthly interest rate (annual rate ÷ 12 ÷ 100). At 8.5% a year, r = 0.0070833 • n = number of monthly payments (years × 12). For 20 years, n = 240 Step 3: Apply the down payment (LTV) cap Final eligible loan = the lower of (loan from Step 2) and (property value × maximum LTV %) If the income-based loan is higher than the LTV limit, the LTV limit wins, and you need a bigger down payment. If the income-based loan is lower, that is your ceiling, however much cash you put down. Home loan eligibility rules by country The method is the same everywhere, but the limits change by country. Use the row for where you are buying. Country How affordability is measured Typical limit Maximum loan vs property value Usual maximum tenure India FOIR on net monthly income 40–60% of net income for all EMIs 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh, 75% above ₹75 lakh (RBI) 30 years United States Debt-to-income on gross income 28% for housing costs, 36% total; many programmes allow 43–50% total Down payment from 3% (conventional) or 3.5% (FHA) 30 years United Kingdom Income multiple plus affordability check 4–4.5× household income; some lenders 5–6× Deposits from 5%; 10–20% gets better rates 25–35 years Canada GDS and TDS ratios at a stress-test rate Housing costs about 39%, all debts about 44%, tested at the higher of 5.25% or your rate + 2% Minimum 5% down on the first $500,000, 10% on the portion above 25 years (30 for some first-time buyers) Australia Lender serviceability test Repayments tested at your rate + 3 percentage points (APRA buffer) 80% without mortgage insurance; 90–95% with it 30 years UAE Debt burden ratio (DBR) All debt payments up to 50% of income About 75–80% for an expat's first home up to AED 5 million; lower above that 25 years These are typical regulatory limits as of October 2026. Individual lenders often apply stricter rules, so treat the table as a starting point and confirm with your bank or broker. What this means for the calculator: set the debt ratio to match your country. Use 50% for India (40% if your income is under about ₹50,000 a month), 36% for a conservative US estimate, and add 2–3 percentage points to the interest rate if you are in Canada or Australia to mimic the stress test. Two worked examples Example 1: India Rahul earns ₹1,00,000 a month after tax and pays a ₹10,000 car loan EMI. He wants a ₹60 lakh flat. His bank uses a 50% FOIR and offers 8.5% for 20 years (an example rate; check current offers). Step Calculation Result Maximum total EMIs ₹1,00,000 × 50% ₹50,000 Room for the home loan EMI ₹50,000 − ₹10,000 ₹40,000 Loan that ₹40,000 can repay (8.5%, 240 months) reverse EMI formula ₹46.09 lakh LTV limit for a ₹60 lakh flat ₹60 lakh × 80% ₹48 lakh Eligible loan lower of the two ₹46.09 lakh Down payment needed ₹60 lakh − ₹46.09 lakh ₹13.91 lakh Rahul also needs cash for stamp duty and registration, because banks do not fund those for properties above ₹10 lakh. If he stretches the tenure to 30 years, his income supports ₹52.02 lakh, but the 80% LTV cap stops him at ₹48 lakh. Example 2: United States Sarah earns $96,000 a year before tax ($8,000 a month) and pays $400 a month on a car loan. Her lender uses the 28/36 rule. The average 30-year fixed rate was 7.28% on 1 October 2026 (Freddie Mac). Step Calculation Result Housing limit (front-end) $8,000 × 28% $2,240 Total debt limit (back-end) $8,000 × 36% − $400 $2,480 Affordable housing payment lower of the two $2,240 Minus property tax and insurance (estimate) $2,240 − $400 $1,840 Loan that $1,840 can repay (7.28%, 360 months) reverse payment formula $268,900 Home price with 20% down $268,900 ÷ 0.80 about $336,000 If rates rose one point to 8.28%, the same $1,840 would support only about $244,200, a drop of roughly 9%. This is why checking eligibility again just before you apply matters. How to use the Home Loan Eligibility Calculator
8. Enter your monthly income. Use take-home pay if you are in India, and gross (pre-tax) pay for the US, UK, Canada or Australia. Add a co-applicant's income if you are applying jointly.
9. Enter your existing monthly debt payments. Include every EMI, car loan, personal loan, student loan and credit card minimum. Leave out rent and utilities.
10. Enter the interest rate. Use a current quote from your bank, or the average rate in your country. Add 2–3 points if you want a safety margin.
11. Choose the loan tenure. 20 years is a sensible middle ground; 25–30 years raises eligibility but costs much more interest.
12. Set the debt ratio (if the calculator asks). Use the figure for your country from the table above.
13. Read the result. The calculator shows your maximum loan amount and the monthly payment it implies. Divide the loan by your country's LTV limit to estimate the highest property price you can target. Run it two or three times with different tenures and rates. Seeing the range is more useful than a single number. 10 ways to increase your home loan eligibility
14. Close small loans first. Paying off a ₹5,000 or $300 monthly EMI frees that whole amount for the home loan, often raising eligibility by several lakh rupees or tens of thousands of dollars.
15. Add an earning co-applicant. A spouse's or parent's income is added to yours. In India, a woman co-owner may also get a slightly lower rate in some banks and lower stamp duty in some states.
16. Choose a longer tenure. Going from 20 to 30 years lifts eligibility noticeably. You can prepay later to cut the interest.
17. Improve your credit score. Pay every bill on time, keep credit card use below 30% of the limit, and avoid new loan applications for six months before applying.
18. Declare all your income. Rental income, regular bonuses, freelance income and investment returns can count if they appear in your tax returns.
19. Make a bigger down payment. It does not raise income-based eligibility, but it lowers the loan you need and can get you a better rate.
20. Compare lenders. Banks and housing finance companies apply different ratios and rates. A 0.5% lower rate or a 5% higher FOIR can make a real difference.
21. Ask about step-up or flexible repayment. Some Indian lenders offer lower EMIs in the early years for young salaried borrowers.
22. Keep a stable job record. Lenders prefer at least two years of continuous employment, or three years of filed returns if you are self-employed.
23. Avoid big purchases on credit before applying. A new car loan taken a month before your home loan application can cut your eligibility sharply. Common mistakes to avoid • Borrowing the maximum just because you can. Eligibility is the bank's ceiling, not your comfort level. Keep the payment low enough to survive a job change or a rate rise. • Forgetting the extra costs. Stamp duty, registration, closing costs, legal fees, moving and furnishing can add 7–10% to the price in India and 2–5% in the US. • Using the wrong income figure. Entering gross salary where the lender uses net (or the other way round) can overstate eligibility by 20–30%. • Leaving out small EMIs. A phone EMI or buy-now-pay-later plan still counts as a fixed obligation on your credit report. • Ignoring rate changes on floating loans. A floating rate can rise after you buy. Test your budget at 1–2 points above today's rate. • Applying to many lenders at once. Each application can trigger a hard credit enquiry. Check eligibility with a calculator first, then apply to one or two shortlisted lenders. Frequently asked questions How much home loan can I get on a ₹50,000 salary? With a 50% FOIR and no other EMIs, you can afford an EMI of about ₹25,000. At 8.5% for 20 years, that supports a loan of about ₹28.8 lakh. Existing EMIs reduce this amount rupee for rupee. How much house can I afford on a $100,000 salary? Using the 28% rule, your housing payment can be about $2,333 a month. After roughly $400 for taxes and insurance, about $1,933 goes to the loan, which supports around $282,000 at 7.28% over 30 years. With 20% down, that points to a home of about $350,000. Does a home loan eligibility calculator affect my credit score? No. A calculator only uses the numbers you type in and does not check your credit report. Only a formal loan application triggers a hard enquiry. Is the calculator result guaranteed? No. It is an estimate. The lender will also check your credit score, documents, employer, age and the property itself before deciding the final amount. What is a good FOIR for a home loan? Most Indian lenders are comfortable when all EMIs, including the new loan, stay between 40% and 50% of net monthly income. Higher earners may be allowed up to 60–65%. What is the 28/36 rule? It is a common US guideline: spend no more than 28% of gross monthly income on housing costs and no more than 36% on all debt payments combined. Can I get a 100% home loan? Rarely. India caps loans at 75–90% of the property value, and most other countries require at least a 3–5% down payment. Government-backed VA and USDA loans in the US are the main exceptions. Does adding a co-applicant always help? Only if the co-applicant has steady income and a good credit history. A co-applicant with large existing debts or a poor score can lower the combined eligibility. Final thoughts Your home loan eligibility comes down to three numbers: how much you earn, how much you already owe, and what the loan will cost each month. Get those right and you will walk into the bank with a realistic budget instead of a hopeful guess. Use the Home Loan Eligibility Calculator on this page to find your number in under a minute. Then try a few what-if scenarios: a longer tenure, one loan paid off, or a co-applicant added. The best home is one you can afford comfortably, not just the one the bank will approve. Disclaimer: This article and calculator are for general information only and are not financial advice. Interest rates and lending rules change often and vary by lender. Always confirm your eligibility, rates and charges directly with a bank, lender or licensed mortgage adviser before making a decision.