Loan Eligibility Calculator
Check the maximum loan amount you can get based on your income and existing EMIs.
Banks use a Fixed Obligation to Income Ratio (FOIR) to cap total EMIs. Credit score, age and employer can adjust the final amount.
About the Loan Eligibility Calculator
Before you apply for any loan, banks run a simple test: can you afford the EMI without choking your monthly cashflow? They use a Fixed Obligation to Income Ratio (FOIR), usually capping your total EMI at 50% to 55% of your net monthly income. The AlarmDaddy Loan Eligibility Calculator runs the same maths the bank does — enter your monthly net income, your existing EMIs, the interest rate and tenure of the new loan, and the calculator works out the maximum loan amount you can comfortably qualify for.
This is the most useful calculator to run before you go house-hunting or shop for a car. Knowing your eligibility upfront stops you from falling in love with a property or model you cannot finance, and lets you negotiate from a position of clarity.
How to use this calculator
- 1Enter your monthly net (in-hand) income.
- 2Enter the total of all existing EMIs.
- 3Enter the new loan interest rate and tenure.
- 4Choose your FOIR ratio (50% is conservative, 55% is what most banks allow).
- 5Read the maximum loan amount you qualify for.
The formula
The bank decides your max EMI by applying a fixed-obligation ratio (typically 50%) to your take-home salary, then subtracts any EMIs you already pay. Once max EMI is known, the calculator inverts the EMI formula to derive the maximum principal you can borrow at the given rate and tenure.