The two limits that decide your budget
How much home you can buy is never one calculation. Two independent ceilings apply, and the lower of the two is your real budget. The first is your income: a lender sizes the EMI it will grant as a share of your net monthly pay, and every EMI you already run counts against the same share. The second is your deposit: the lender funds only part of the price, so the rest has to come out of your own savings.
The two move for completely different reasons, which is why knowing which one binds matters more than the headline figure. If your deposit is the shorter ceiling, stretching the tenure changes nothing at all. If your income is the shorter one, saving for another year changes nothing either. The calculator above names the binding limit rather than leaving you to work out which lever is worth pulling.
How lenders size the EMI they will grant
Indian lenders assess a fixed-obligation-to-income ratio — the share of net monthly income that all your EMIs together may occupy. It generally sits somewhere in the 40–50% band, moving with income level, employer profile and credit history, and it is the ratio rather than a rupee figure that is fixed. That is why an existing car or personal loan reduces your home-loan eligibility so sharply: the older EMI is taken out of the same allowance, not out of what is left after it.
Working backwards from the allowance gives the largest loan your salary supports. The formula is the standard EMI equation solved for principal, so the loan and the EMI shown are exactly consistent with each other and with any EMI calculator using the same rate and tenure.
Loan = EMI × (1 − (1 + i)^−n) / i
Why your deposit buys less than you think
The loan-to-value cap is set by the Reserve Bank of India and applied by every lender: broadly 90% of the price for smaller loans, 80% in the middle band and 75% for the largest, with individual lenders free to be stricter. Whatever the cap, the balance is yours to find in cash.
The trap is that the deposit is not the only cash you need on the day. Stamp duty and registration are charged on the property value, vary by state and commonly run to several percent, and they come out of the same savings. A buyer who budgets their deposit as price divided by five and forgets the rest is short by a meaningful sum at exactly the point where the money must already be in the account. Enter your own state duty above and the budget accounts for both.
Price = savings / ((1 − LTV) + purchase costs)
What the figure is, and what it is not
This is a sizing calculation on the terms you enter — it says what a lender applying those rules would extend and what your cash covers. It is not an offer, not an eligibility decision, and not a view on whether buying is the right move for you. A lender will also look at your credit score, employment type, the age at which the loan matures and the property title itself, none of which arithmetic can see.
It also says nothing about whether the largest loan you can get is the loan you want. Borrowing to the ceiling means committing the maximum share of your income for two decades, which is a decision about the life you want rather than about the arithmetic. Muktify shows you the numbers; the choice stays yours.
Frequently asked questions
How much home loan can I get on a ₹1 lakh monthly salary?+
With no other EMIs and a lender allowing half of net income towards instalments, the allowance is around ₹50,000 a month. Over 20 years at 8.5%, that services a loan of roughly ₹57–58 lakh — but only if your deposit covers the balance of the price plus stamp duty.
What is FOIR and how does it affect my eligibility?+
FOIR is the fixed-obligation-to-income ratio — the share of your net monthly income that all EMIs together may occupy, generally in the 40–50% band. An existing loan is deducted from that same allowance rather than from your remaining income, which is why one car loan can cut home-loan eligibility by several lakh.
How much down payment do I need for a home loan in India?+
The Reserve Bank caps how much of a property’s value a lender may fund: broadly 90% for smaller loans, 80% in the middle band and 75% for the largest. The balance is your deposit, and stamp duty and registration are on top of it, out of the same savings.
Does an existing car or personal loan reduce how much home loan I get?+
Yes, and by more than most people expect. The existing EMI is subtracted from your total instalment allowance, so at a 50% ratio on ₹1.5 lakh income a ₹20,000 car EMI leaves ₹55,000 rather than ₹75,000 — cutting the loan you can service by roughly a quarter.
Should I take the longest tenure to increase my eligibility?+
A longer tenure lowers the EMI and so raises the loan your income supports, but it raises total interest substantially and only helps when income is the binding limit. If your deposit is what caps your budget, extending the tenure changes nothing. The calculator names which limit is binding for you.
Is stamp duty included in the home loan?+
Generally no. Lenders size the loan against the property value and expect stamp duty, registration and brokerage to be paid separately in cash, so those costs come out of the same savings as your deposit. Leaving them out is the most common way a purchase budget comes up short.
What income do I need for a ₹50 lakh home loan?+
Working backwards over 20 years at 8.5%, a ₹50 lakh loan carries an EMI of about ₹43,400. At an allowance of half of net income and no other EMIs, that implies take-home pay of roughly ₹87,000 a month — more if you already run other instalments.
Does this calculator guarantee I will get this loan?+
No. It is arithmetic on the terms you enter, not a lending decision. An actual sanction also depends on your credit score, employment type, the age at which the loan would mature and the property’s own title and valuation, none of which this can assess.
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