Lenders work backwards from your income using FOIR. This uses the same rule, so you know your number before you apply.
Lenders work backwards from your income using a rule called FOIR. This calculator uses the same rule, so you know your number before you apply.
People usually approach a loan from the wrong end. They decide they need ₹8 lakh, then hope a lender agrees.
Lenders work in the opposite direction. They start with your income, subtract what you already pay each month, apply a ceiling, and whatever EMI is left over becomes the loan amount. Your requirement never enters the calculation.
Once you know that, you can work out your own number in two minutes. That is what this page does. Knowing it beforehand means you apply for something realistic instead of collecting a rejection.
Lenders use FOIR — the Fixed Obligation to Income Ratio. They cap your total EMIs, existing plus new, at a percentage of your net monthly income, usually 50%. Whatever EMI room is left after your current obligations decides your maximum loan amount, based on the interest rate and tenure.
Everything else in your file — credit score, employer, job stability — decides whether you get approved and at what rate. FOIR decides how much.
Use your take-home pay, not your CTC. Lenders work with what actually reaches your bank account.
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Indicative only. Real sanctions also depend on your credit score, employer category, job stability and account conduct. Nothing you type is saved or sent anywhere.
FOIR is the share of your income already committed to fixed monthly payments.
If you earn ₹70,000 and pay ₹14,000 in EMIs, your FOIR is 20%. A lender working to a 50% ceiling will allow total EMIs up to ₹35,000, so it can add ₹21,000 of new EMI.
That ₹21,000 is then converted into a loan amount using the rate and tenure. At 14% over 48 months, ₹21,000 a month supports roughly ₹7.7 lakh.
Change any input and the answer changes. That is the whole mechanism.
💡 Did You Know?
Rent is not counted as a fixed obligation in the FOIR formula, but it absolutely affects the decision. A credit officer reading a bank statement where most of the salary is gone by the 5th of every month will lend more cautiously than the formula alone suggests. In high-rent cities this gap between the formula and the real sanction is common.
| Factor | Effect on how much you get |
|---|---|
| Credit score | Does not change FOIR directly, but a low score means a higher rate, and a higher rate means a smaller loan for the same EMI room |
| Employer category | Government, PSU and large listed employers often get a higher FOIR ceiling |
| Income level | Higher earners are often allowed 60% FOIR, because what remains is still enough to live on |
| Tenure | Longer tenure means a bigger loan for the same EMI, and much more total interest |
| Co-applicant | Adding an earning co-applicant adds their income to the calculation |
| Job stability | A recent job change can reduce the ceiling or lead to a decline |
| Self-employed status | Your declared ITR income is used, not your business turnover |
🧠 Expert Insight
Look at the tenure table the calculator produces. The same monthly payment buys a much larger loan over 72 months than over 24 — and the interest column shows what that costs. Most people look only at the loan amount column. The two columns together are the actual decision.
The number this calculator gives you is a ceiling, not a recommendation. There is a difference, and it matters.
At 50% FOIR, half your take-home pay goes to EMIs before you have paid rent, bought groceries or saved a rupee. That works on paper. In a real month with a medical bill or a school fee, it does not leave much room.
A more comfortable place to sit:
Move the FOIR slider to 35% and see what that does to your number. That figure is usually closer to what you should borrow than what you could.
Priyanka works at a private bank in Kolkata. Her take-home pay is ₹70,000. She was paying ₹12,000 a month — a car loan EMI of ₹9,000 and about ₹3,000 towards a credit card.
She wanted ₹8 lakh to consolidate some debt and cover a family medical expense.
At 50% FOIR, her ceiling was ₹35,000 of total EMI. Minus the ₹12,000 already committed, that left ₹23,000 of room. At 14% over 48 months, that supported roughly ₹8.4 lakh. So her requirement fitted, just.
What she actually did was different. She ran the calculator at 40% FOIR instead, which gave her about ₹5.9 lakh. She reduced her requirement to ₹6 lakh by dropping a non-urgent part of the plan.
Her EMI came to about ₹16,400 rather than ₹23,000. Her total obligations sit at ₹28,400 against ₹70,000, which is a little over 40%. She has room for a bad month, which the maximum would not have left her.
(This example is for explanation only. Your own figures depend on your income, obligations and the offer you get.)
✅ Answers: how do I lower my current EMIs to free up FOIR room?
✅ Answers: would one loan cost me less than all of these?
Q1. What is FOIR?
Fixed Obligation to Income Ratio. It is the share of your net monthly income that goes to fixed payments such as loan EMIs and card dues. Lenders cap the total, usually at 50%, and that cap decides your loan amount.
Q2. Should I use my CTC or my take-home salary?
Take-home. CTC includes PF, gratuity and benefits that never reach your account. Lenders work with the amount actually credited each month.
Q3. Is rent included in FOIR?
Not in the formula. But lenders read your bank statement, and high rent visible there does make them more cautious. In expensive cities the real sanction often comes in below the formula.
Q4. How is my credit card counted?
Most lenders count a percentage of your outstanding balance — often 5% — as a monthly obligation, even if you clear the card in full. Reducing the balance before applying increases your room.
Q5. Can I get more than 50% FOIR?
Sometimes. Higher earners, government employees and applicants at large listed companies are occasionally allowed up to 60%. It is at the lender's discretion, not something you can request.
Q6. Does a co-applicant increase my eligibility?
Yes, their income is added to the calculation. They also become fully responsible for repayment and it appears on their credit report, so it should be a joint decision.
Q7. I am self-employed. What income figure do I use?
Your declared income from your ITR, divided by twelve. Not your business turnover. Lenders assess declared income, which is why under-declaring limits how much you can borrow.
Q8. Why is the amount smaller than I expected?
Usually one of three reasons: existing EMIs are eating the room, the interest rate assumed is high, or the tenure is short. Adjust each in turn to see which one is driving it.
Q9. Does my credit score affect how much I can borrow?
Indirectly but significantly. The score sets your interest rate, and the rate decides how much loan a given EMI supports. A poor score means a higher rate, which means a smaller loan for the same monthly payment.
Q10. Should I borrow the maximum shown?
No. That figure is a ceiling. Most households are comfortable under 40% FOIR. Move the slider to 35% and treat that number as the sensible target.
Q11. How can I increase my eligibility quickly?
Close a small loan, or bring down your credit card balance. Both free up FOIR room immediately. Consolidating several EMIs into one smaller EMI does the same thing on a larger scale.
Q12. Is bonus or incentive income counted?
Usually discounted, and sometimes ignored entirely unless it has been consistent for two or more years. Base your planning on the fixed portion of your income.
Q13. Does checking this affect my credit score?
No. This is just a calculator running in your browser. Even a formal eligibility check with a lender is a soft enquiry with no impact. Only a submitted application creates a hard enquiry.
Q14. Why does the tenure table show such different amounts?
Because the same monthly payment stretched over more months supports a bigger loan. Look at the interest column alongside it — that is what the bigger number costs you.
Lenders do not care what you need. They care what your income can carry after what you already owe. Once you understand FOIR, the whole process stops feeling arbitrary.
Use the calculator twice. Once at 50% to see your ceiling, and once at 35% to see what is actually comfortable. Then borrow closer to the second number. If the amount you need only fits at 50%, the better move is usually to reduce your existing EMIs first — which raises your capacity and lowers your risk at the same time.
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Calculator Disclaimer
This tool gives indicative estimates for general information, not financial advice. FOIR limits, income treatment and eligibility rules differ between lenders and change over time. The final sanctioned amount is decided entirely by the bank or NBFC after their own credit assessment.
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