Lenders limit your total monthly loan payments to a fraction of your income — the FOIR (Fixed Obligation to Income Ratio), often around 40–55%. The maximum EMI you can take on is that share of your income minus any EMIs you already pay.

The calculator then reverses the standard EMI formula: given the maximum affordable EMI, the interest rate and the tenure, it solves for the largest principal P whose EMI does not exceed that limit.

Given: Income ₹1,00,000/month, FOIR 50%, existing obligations ₹10,000, rate 9% p.a., tenure 20 years (240 months)

Max EMI = 1,00,000 × 50/100 − 10,000 = ₹40,000

Monthly rate r = 9/12/100 = 0.0075  ·  (1+r)²⁴⁰ = 6.009

P = 40,000 × (6.009 − 1) / (0.0075 × 6.009) ≈ ₹44,45,700

• FOIR (also called DTI in some markets) varies by lender and income band; higher incomes are often allowed a higher ratio.
• Use your net take-home income and include all current EMIs and fixed obligations for an accurate figure.
• This is an indicative eligibility estimate — actual sanctioned amounts also depend on credit score, property value / loan-to-value limits, age and employment stability.
• A longer tenure or lower rate increases the eligible amount; a higher rate reduces it.

What is FOIR?
The maximum portion of your monthly income a lender will allow to go towards all loan EMIs combined, expressed as a percentage.

Why include existing obligations?
Current EMIs already use part of your FOIR limit, reducing what is available for a new loan.

Is this the guaranteed loan amount?
No — it is an estimate. Lenders apply additional checks such as credit score and loan-to-value limits.