Explore a loan amount from the monthly budget you can allocate after expenses, existing EMIs and savings. Compare repayment costs while keeping a reserve for other financial needs.
How to use the Loan Affordability calculator
Build a monthly cash budget before estimating a new loan. Enter take-home income, living costs, existing EMIs and the amount you want to retain for savings and contingencies. The calculator uses only the remaining amount for a new EMI.
- Net monthly income
- Enter regular take-home income rather than gross salary or uncertain receipts.
- Living expenses
- Include recurring costs such as housing, food, utilities and transport.
- Existing EMIs
- Enter monthly repayments that will continue.
- Savings and contingency reserve
- Set aside your desired monthly amount for savings, irregular bills and a buffer before allocating a new EMI.
- Interest rate and tenure
- Enter the nominal annual loan rate and term in whole months.
Select Calculate, review the result and its breakdown, then change one input at a time to compare scenarios.
Formula and calculation method
The remaining budget is income minus living expenses, existing EMIs and the savings reserve. A negative remainder is treated as zero. The loan estimate is the present value of that monthly repayment stream using a constant reducing-balance rate. Interest equals total repayment minus principal.
See the numbers in context
With ₹1,00,000 income, ₹40,000 expenses, ₹15,000 existing EMIs and a ₹20,000 savings reserve, the new EMI budget is ₹25,000. At 10% for 60 months, the modeled loan is about ₹11,76,634. Total repayment is ₹15,00,000 and interest is about ₹3,23,366.
Illustrative inputs · rounded to the nearest rupeeWhat your result means
The result reflects the household budget you entered. It does not certify that this debt is safe or that a lender will approve it. A bank may approve a different amount, while your own comfort level may be lower than the model’s maximum.
Scenarios worth comparing
- Increase the savings reserve to allow more room for future needs.
- Model lower income or higher living costs to assess pressure on your budget.
- Compare loan tenures while checking the total interest, not only the EMI.
Assumptions and limitations
- Income, expenses and existing EMIs remain unchanged throughout the loan.
- The savings reserve is a monthly budget allocation, not a modeled investment return.
- The rate is fixed and divided by 12; instalments are monthly with reducing-balance interest.
- Processing fees, loan insurance, rate resets and one-off expenses are excluded.
Frequently asked questions
How does this differ from Loan Eligibility?
Eligibility uses an entered total-EMI share of income. Affordability starts with your detailed cash budget and savings reserve. Neither tool approves a loan.
What if my budget has no surplus?
The new EMI budget and loan estimate are zero. Review your costs and commitments rather than treating a zero as a lender’s decision.
Does the loan include fees?
No. Fees or insurance paid upfront need separate funds. If financed, they can also change the actual principal and repayment.
Educational estimates only. Verify inputs, applicable rules and product terms before making decisions. Read the disclaimer.