EMI Affordability Calculator
Check if a new EMI fits your income using FOIR limits.
EMI Affordability and FOIR
Before taking a new loan, banks evaluate your Fixed Obligation to Income Ratio (FOIR). This calculator determines how much additional EMI you can comfortably afford based on your net take-home salary and existing monthly loan obligations.
How to use this calculator
Enter your net monthly in-hand salary after tax and PF deductions. Do not use CTC. Banks assess affordability on what actually hits your bank account each month.
List every existing EMI: home loan, car loan, personal loan, education loan, and any credit card EMI conversions. Missing even one obligation will overstate how much new loan you can take. The calculator applies a typical FOIR cap of 40% to 50%. If you are already at 45%, only a small top-up EMI may be approved.
Use the result before applying for a home loan top-up, personal loan, or credit line. If the affordable EMI is lower than you hoped, consider a longer tenure, adding a co-applicant, or closing a smaller loan first. FOIR is not the only factor. Banks also look at credit score, job stability, and employer category, but staying within FOIR limits avoids last-minute rejections after a hard CIBIL inquiry.
Self-employed applicants should use average monthly bank credits after business expenses rather than gross turnover. Lenders often haircut variable business income by 25% to 40% when calculating FOIR. Keep six months of bank statements ready if you are a proprietor or freelancer applying for a secured top-up loan. Co-borrowers should disclose all credit card minimum due amounts if banks ask for total obligations.
What is FOIR?
FOIR = (Sum of all existing EMIs + Proposed EMI) / Net Monthly Income × 100 Banks usually cap FOIR between 40% to 50% for loan approvals.
Frequently Asked Questions
What is a good FOIR ratio?
A FOIR below 40% is considered excellent. If your FOIR exceeds 50%, banks may view you as carrying too much debt and either reject your loan or charge a higher risk premium interest rate.
Are credit card bills included in FOIR?
Generally, regular credit card outstanding balances are not included unless you have converted your credit card dues into specific EMIs.
How can I improve my loan affordability?
You can improve affordability by closing existing loans to reduce your current EMI burden, adding a co-applicant with a stable income, or opting for a longer loan tenure.
Does rental income count for FOIR?
Banks may count stable rental income at 50% to 75% of the gross rent after subtracting home loan EMI on that property. Rules vary by lender and city.
Why was my loan rejected despite a good salary?
High credit card utilization, too many recent loan inquiries, or undisclosed co-borrower EMIs can push FOIR above internal limits even when salary looks strong on paper.
Do co-applicant incomes combine for FOIR?
Yes. Adding a working spouse or parent as co-applicant merges income and existing EMIs, which often increases the eligible loan amount for home and car loans.
Is FOIR the same for all banks?
No. PSU banks, private banks, and NBFCs use different internal FOIR caps and may treat rental or bonus income differently.
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