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Loan Affordability — Free Online Tool
Before you apply for a loan it helps to know how much a lender is likely to approve and how much you can comfortably repay. This loan affordability calculator works backwards from your income. Enter your monthly net income, the EMIs you already pay, the share of income you are willing to commit to loan repayments, the expected interest rate and the tenure in years. The tool first computes your maximum affordable EMI, which is your income multiplied by the allowed percentage minus existing EMIs, and then converts that EMI into the largest loan principal using the present value of the repayment stream. Indian banks commonly use a fixed obligation to income ratio, often called FOIR, between forty and sixty percent, so the default of fifty percent is a realistic starting point. You also see the total repayment and the total interest you would pay over the full tenure, which helps you judge whether a longer tenure with a lower EMI is really worth the extra interest. This is different from an EMI calculator, which starts with a known loan amount and gives you the instalment. Use the two together: first find the affordable amount here, then check detailed EMI numbers. Results are estimates; the lender's own credit assessment decides the final eligibility.
Use our Loan Affordability on AllConvertor — no registration, no download, works on iPhone, Android, Windows, and Mac. All processing runs in your browser when possible for maximum privacy and speed.
How to use Loan Affordability
- Enter your monthly net income.
- Add the total of your existing EMIs per month.
- Set the percentage of income you can dedicate to EMIs.
- Enter the interest rate and the tenure in years.
- Read the maximum loan amount and the EMI behind it.
Key benefits
- ✓ 100% free — no paywall or trial limits
- ✓ No account or email required
- ✓ Mobile-friendly responsive design
- ✓ Instant results in your browser
- ✓ Secure — data stays on your device
- ✓ Trusted by thousands of users daily
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Frequently Asked Questions
How is loan affordability calculated?
First the maximum EMI is found as income × FOIR% minus existing EMIs. That EMI is then converted into a principal using the present value of an annuity at your interest rate and tenure.
What is FOIR and what value should I use?
FOIR is the Fixed Obligation to Income Ratio, the share of monthly income that goes towards loan repayments. Most Indian lenders allow roughly 40-60%, so 50% is a sensible default.
Is this the same as the EMI calculator?
No. The EMI calculator starts from a loan amount and gives the monthly instalment. This tool starts from your income and tells you the largest loan you can afford.
Will the bank approve exactly this amount?
Not necessarily. Banks also check credit score, employment type, age, property value and other liabilities, so treat this result as a planning estimate rather than an approval.
Does a longer tenure increase how much I can borrow?
Yes. A longer tenure lowers the EMI for the same loan, so the affordable principal rises, but the total interest you pay increases substantially.