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EMI ↔ Loan Amount Converter
Know your budget? Find the maximum loan you can take. Have a loan amount? Calculate your EMI instantly. Works for all loan types.
About this converter
This converter answers two related questions: “What’s the maximum loan I can afford?” and “What’s my EMI on a given loan?” Both directions use the standard reducing-balance EMI formula. Useful for home, car, personal, and education loans.
The banker’s rule of thumb in India: total EMI commitments should not exceed 40-50% of net monthly income (FOIR — Fixed Obligation to Income Ratio). On a ₹1 lakh take-home, that’s ₹40,000-50,000 in EMIs. Existing EMIs eat into this cap. At 8.5% interest over 20 years, every ₹1,000 of EMI supports roughly ₹1.15 lakh of home loan principal — so a ₹40,000 EMI affords roughly ₹46 lakh of loan.
Three calibration points: HDFC and SBI typically approve up to 50% FOIR for salaried customers above ₹1 lakh/month; PSU banks tend to cap at 45%. For self-employed, the income is averaged from the last 2-3 years of ITR, and the FOIR is usually 40%. For RBI-mandated stress tests, lenders simulate a 2% rate hike — if the EMI at the stressed rate exceeds 60% of income, the loan is rejected.
The standard rule for home loans in India: keep total EMI (all loans) under 40–50% of monthly take-home salary. For a ₹1L salary, total EMIs should not exceed ₹40,000–₹50,000. This converter helps you reverse-engineer the maximum loan you can service.
Affordability Math — What Loan Can You Actually Take?
Banks approve loans based on EMI-to-income ratio (called FOIR — Fixed Obligation to Income Ratio). The thumb-rule: total EMI commitments should stay within 40-50% of net monthly income. Existing EMIs subtract from that ceiling, so each new loan compresses what’s available.
This converter works both directions: enter the EMI you can afford → see the maximum loan amount; or enter the loan amount → see the EMI. Both calculations use the reducing-balance EMI formula with monthly compounding.
Loan Eligibility by Salary & Tenure (at 9% Interest)
| Net Monthly Income | Affordable EMI (45%) | Loan @ 5 Yrs | Loan @ 15 Yrs | Loan @ 25 Yrs |
|---|---|---|---|---|
| ₹50,000 | ₹22,500 | ₹10.8 L | ₹22.2 L | ₹26.8 L |
| ₹75,000 | ₹33,750 | ₹16.3 L | ₹33.3 L | ₹40.2 L |
| ₹1,00,000 | ₹45,000 | ₹21.7 L | ₹44.4 L | ₹53.6 L |
| ₹1,50,000 | ₹67,500 | ₹32.5 L | ₹66.5 L | ₹80.4 L |
| ₹2,00,000 | ₹90,000 | ₹43.4 L | ₹88.7 L | ₹1.07 Cr |
| ₹3,00,000 | ₹1,35,000 | ₹65.0 L | ₹1.33 Cr | ₹1.61 Cr |
Bank FOIR vs Your Sanity: Banks approve up to 50% FOIR, but living with 50% of income going to EMIs is brutal. Financial-planning best practice keeps total EMIs under 35-40% of net income. Just because a bank approves a number doesn’t mean you should take it.
Sample Loan Scenarios
Example 1: ₹50 L Home Loan, 20 Years
At 8.5% interest, EMI = ₹43,391/month. Total payback = ₹1.04 Cr (₹54 L in interest). To afford this comfortably, household net income should be ₹95K+/month with no other major EMIs.
Example 2: ₹10 L Personal Loan, 5 Years
At 14% interest, EMI = ₹23,268/month. Total payback = ₹13.96 L (₹3.96 L in interest = 40% on top of principal). At ₹50K monthly income, this is 46.5% of income — at the edge of approval and well above comfort zone.
Example 3: Hybrid Affordability
₹80K monthly income with ₹15K existing car EMI. Available FOIR = (45% × 80K) − 15K = 21K. Maximum new home loan at 8.5%/20 years = ~₹24 L. The existing car loan cut new-loan capacity by half compared to no existing EMI.
Negotiating Better Loan Terms
- Credit score 750+ usually unlocks the best rates. Below 700 → expect 1-2% rate premium or rejection. Pull your CIBIL/Experian before applying.
- Co-applicant (especially spouse) boosts eligibility by combining incomes. Women co-borrowers may unlock 0.05-0.10% rate discount on home loans.
- Longer tenure = larger loan, more interest: extending 20 years to 25 years grows loan capacity ~20%, but total interest paid grows ~35%.
- Down payment matters: 80% LTV (Loan-to-Value) is the standard maximum for home loans. Higher down payment = better rate + lower EMI burden.
- Pre-approval before house-hunting: Banks pre-approve based on income; you negotiate the property knowing exactly what you can borrow.