Plan your home loan budget
Check borrowing room and the cash you may need upfront.
Cash you need upfront
Your lender may use different income and property checks. This is a calculation using your settings, not an approval.
How we calculate this
Based on income = the loan your EMI room supports (same formula as the personal loan range):
room = income × your share − existing EMIs; amount = room × [1 − (1 + r)^−n] ÷ r
Based on property = price × your loan-to-value share
Loan limit = the lower of the two
Down payment = price − loan limit; cash upfront = down payment + extra costs
Shortfall = cash upfront − savings (only when you enter savings)Calculation version 0.6. Not covered: property valuation, how a lender checks income, tax benefits, state stamp-duty rules and age limits on the term.
Related: Can I afford it? · EMI & total cost · Compare two offers · Prepayment calculator
How to read your home loan budget
This tool answers two questions about buying a home: how big a loan your settings allow, and how much cash you must bring.
What the numbers mean
Estimated loan limit is the lower of two figures, shown side by side.
Based on income is the loan your monthly budget could carry. An EMI (equated monthly instalment) is the fixed monthly repayment. Room for a new EMI = income × share − existing EMIs. The share of income is the most you want to spend on all EMIs together. Enter the income and EMIs of everyone who will repay, and count a shared loan only once.
The annuity formula turns that room into a loan amount, as in our personal loan range. On a reducing-balance loan, each EMI pays the month’s interest first and the rest cuts what you owe.
Based on property value is the price × your loan-to-value share. Loan-to-value (LTV) means the loan as a share of the property price.
The lower box is outlined, and a line says which one sets the limit. The EMI on that loan appears under the result.
Your settings, not the rules
Both the share of income and the LTV sit under “Advanced”. They are settings for this estimate. They are not RBI rules or any lender’s policy, and we don’t suggest which numbers lenders use. Ask your lender which limits apply to you. Lenders also check credit history, job, age and the property itself.
Cash you need upfront
The down payment is the part of the price the loan doesn’t cover, paid from your own money. Down payment = price − loan limit.
Extra buying costs are stamp duty (a state tax on the sale papers), registration fees and other charges. They differ by state and property, so the tool doesn’t guess them. Enter the total you were quoted.
Cash upfront = down payment + extra costs.
The shortfall row appears only when you enter your savings. If the box is empty, the tool doesn’t know your savings, so it shows no shortfall. If you type 0, the shortfall is the whole cash upfront.
Worked example
Meena and Arjun, a fictional couple in Nagpur, take home ₹1,20,000 a month together. They pay a ₹10,000 car EMI. These are the page’s starting values. The 8.5% rate, the 50% share and the 75% LTV are examples only.
| Step | Value |
|---|---|
| Income × 50% share | ₹60,000 |
| − Existing EMIs | ₹10,000 |
| Room for a new EMI | ₹50,000 |
| Based on income (8.5%, 240 months) | ₹57,61,542 |
| Based on property value (₹60,00,000 × 75%) | ₹45,00,000 |
| Estimated loan limit | ₹45,00,000 |
| EMI on that loan | ₹39,052 |
| Down payment | ₹15,00,000 |
| + Extra buying costs | ₹4,00,000 |
| Cash you need upfront | ₹19,00,000 |
Here the property value sets the limit. If they enter ₹15,00,000 of savings, the tool shows a shortfall of ₹4,00,000.
Now say the flat costs ₹90,00,000 and buying costs are ₹6,00,000. The property limit rises to ₹67,50,000, so income becomes the lower figure. The loan limit is ₹57,61,542 with an EMI of ₹50,000, the down payment grows to ₹32,38,458 and the cash upfront reaches ₹38,38,458.
What this tool doesn’t do
It doesn’t value the property or judge how a lender will count your income. Tax benefits, state stamp duty rules and age limits on the term are left out, and loan fees are not included. The EMI calculator shows the total cost with fees.
A loan the formula allows can still be tight for your month. You’ll also have new costs such as maintenance and furnishing. Check the EMI against your budget, see how prepayment changes the loan, or compare two offers. If your current EMIs already feel heavy, see practical steps when it’s hard to pay.
Read next
Frequently asked questions
Why does the tool show two loan limits?
One comes from your income: the loan whose EMI (fixed monthly repayment) fits the room left after your existing EMIs. The other comes from the property: its price times the loan-to-value share you set. The loan limit is the lower of the two. In our fictional example, income supports ₹57,61,542, but 75% of a ₹60,00,000 flat is ₹45,00,000, so the limit is ₹45,00,000.
What loan-to-value share should I use?
Loan-to-value (LTV) is the loan as a share of the property price. In this tool it is your own setting, not an RBI rule or a lender's policy, and we don't suggest a number. Lenders decide their own limits and may value the property differently from the price you agreed. Ask the lender which share applies to your loan and enter that.
What should I enter as extra buying costs?
Enter the total of stamp duty (a state tax on the sale papers), registration fees and other charges you were told about. These differ by state and by property, so the tool doesn't guess them. Ask the seller, your lawyer or the local registration office for the figures. The tool adds them to the down payment to show the cash you need upfront.
Why don't I see a shortfall?
The shortfall row appears only when you enter your savings. An empty box means the tool doesn't know them, and unknown is not the same as zero. If you type 0, the shortfall equals the whole cash upfront. In the fictional example, the cash upfront is ₹19,00,000. With ₹15,00,000 of savings entered, the shortfall is ₹4,00,000.
We are buying together. Whose income should we enter?
Enter the take-home income of everyone who will repay the loan, added together. Do the same with existing EMIs, but count a loan you share only once, or the room will look smaller than it is. A lender may count each person's income in its own way. Talk early about who pays the EMI if one income stops for a while.
Does the estimate include my age, tax benefits or loan fees?
No. The tool doesn't ask your age, so it doesn't check how long a term a lender might give you. Tax benefits, state stamp duty rules and how a lender checks your income are also left out. Processing fees aren't included either. Our EMI calculator shows the total cost with fees, and the prepayment calculator shows how paying early changes the loan.