Will a bank actually lend me this amount?

Not necessarily. This shows what the payment supports arithmetically. Lenders additionally assess income, credit score, employment stability, existing loans and the value of the asset. Sanctioned amounts are often lower.

Finance

Loan Affordability Calculator

Work backwards from a monthly payment you can comfortably afford to the loan amount it actually supports.

Updated 27 Sep 2026

Affordable monthly payment

Annual interest rate

Loan tenure

Tenure unit

Years Months

You could borrow ₹2,464,835.22

Total you would repay ₹4,500,000.00

Total interest ₹2,035,164.78

Monthly payment25,000.00

Monthly rate (r)0.0075

Payments (n)180

A monthly payment of 25,000.00 over 180 months at 9.00% supports a loan of about 2,464,835.22. Across the full term you would pay 4,500,000.00, including 2,035,164.78 in interest.

Quick answer

Enter the monthly payment you can afford, the interest rate and the tenure. The calculator returns the loan amount that payment supports, plus the total you would repay and how much of it is interest.

What is the Loan Affordability Calculator?

Most loan calculators start with the amount you want and tell you the payment. This one runs the other way: you start with what you can afford each month and it tells you what that supports.

That is usually the more useful direction. Your budget is the real constraint, not the property price.

How to use the Loan Affordability Calculator

Enter the monthly payment you can sustain without strain. A common guideline is that all loan payments together stay under 40% of take-home pay.
Enter the interest rate you expect to be offered.
Enter the tenure you are considering.

Formula

P = EMI × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ)

P = borrowable principal
EMI = affordable monthly payment
r = monthly rate = annual rate ÷ 12 ÷ 100
n = number of monthly payments

This is the standard EMI formula rearranged to solve for principal instead of payment. It is the present value of an annuity: what a stream of fixed future payments is worth today at the given discount rate.

How the calculation works

The calculation discounts each future payment back to today using the monthly interest rate, then sums them. That total is the maximum a lender could advance while still being repaid in full over the term.

Note that lenders apply their own eligibility rules on top, based on income, credit history and existing obligations. This figure is the arithmetic ceiling, not an approval.

Worked example

An affordable payment of ₹25,000 a month, at 9% for 15 years:

Monthly rate r = 0.0075
Payments n = 180
Supported loan = ₹24,64,835

Across the term you would pay ₹45,00,000 in total — meaning ₹20,35,165 of interest on a ₹24.6 lakh loan.

Uses and benefits

Set a realistic budget before you start looking at properties or vehicles.
See how much extra borrowing capacity a longer tenure buys, and what it costs.
Avoid being talked into a larger loan than your income comfortably services.

Frequently asked questions

A widely used guideline is that total debt payments stay under 40% of net monthly income, with home loans alone under about 30%. Lenders apply their own ratios, but the guideline exists to leave room for the rest of your life.

References

Lenders assess eligibility on income, credit score, existing debts and the asset being financed. This calculator shows what the payment mathematically supports; actual sanctioned amounts are frequently lower.