Percentage of salary you are willing to allocate to loans.
Safe Monthly EMI Limit
While banks determine your "Eligibility" based on their risk policies, your "Affordability" is personal. It depends on your lifestyle, savings goals, and other expenses that banks don't see (like school fees, medical bills, or travel). Our EMI Affordability Calculator puts you in control. It helps you find a "Safe EMI" limit based on the percentage of income you are comfortable spending, ensuring you don't over-leverage yourself and end up "house poor" or stressed by debt.
Ensure your loan repayments don't eat into your lifestyle or emergency savings.
Set your own spending limit (e.g., 30% or 40%) instead of the bank's generic 50% limit.
Calculate how much loan you can buy with your spare monthly cash.
Avoid the debt trap by borrowing only what you can comfortably repay.
Ideal for planning future big purchases like a second home or luxury car.
Financial experts generally recommend that your total EMIs should not exceed 35% to 40% of your net monthly income. Banks may allow up to 50%, but staying lower gives you a safety buffer for emergencies.
Eligibility is the maximum amount the bank is willing to lend you. Affordability is the amount you *should* borrow based on your other expenses and savings goals. Affordability is usually lower than Eligibility.
Yes. Increasing the loan tenure reduces the monthly EMI, which technically "increases" the loan amount you can afford for the same monthly budget. However, it also increases the total interest you pay.
If you are calculating affordability for a Car Loan or Personal Loan, yes, include rent as a fixed expense. If you are buying a house to live in (where you will stop paying rent), you might exclude it.
