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About this tool
Check a proposed EMI against your FOIR, your monthly surplus and a rate-rise stress test before you sign the loan.
FOIR, the fixed obligation to income ratio, is the share of net monthly income already committed to EMIs, and it is the number a lender underwrites against: (existing EMIs + proposed EMI) ÷ net monthly income × 100. This checker computes the proposed EMI from the standard reducing-balance formula, places the resulting FOIR against a chosen ceiling, shows the surplus left after essential expenses, and re-runs the EMI two percentage points higher to see whether the loan survives a rate rise. It is for anyone about to sign a sanction letter who wants the arithmetic before the commitment.
Open EMI Affordability Checker on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Uses FOIR, the ratio banks actually underwrite against, not a vague affordability rule.
Shows the surplus left after essentials, which is often tighter than the lender's ceiling.
Re-prices the EMI two percentage points higher, the rise a floating loan can deliver.
Below 40% is comfortable and below 35% is very safe. Most Indian banks and NBFCs sanction retail loans up to a FOIR of around 50% of net monthly income, tightening towards 40% for lower incomes and stretching to 55-60% for high earners with strong credit profiles. There is no statutory limit — each lender sets its own policy.
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the annual rate divided by 12 and by 100, and n is the number of monthly instalments. A Rs 30 lakh loan at 8.75% over 20 years gives r = 0.00729 and n = 240, producing an EMI of about Rs 26,511 and total interest of roughly Rs 33.6 lakh.
Work backwards from the FOIR ceiling. At 50% of a Rs 1,00,000 net salary the total EMI budget is Rs 50,000; if Rs 12,000 of EMIs are already running, Rs 38,000 is available, which at 8.75% over 20 years supports a loan of roughly Rs 43 lakh. Actual eligibility also depends on credit score, age, employer category and, for a home loan, the RBI's loan-to-value limits on the property.
On a floating-rate loan linked to an external benchmark, banks normally extend the tenure and keep the EMI unchanged. That only works while there is tenure left to give — the loan cannot usually run past retirement age — so once the tenure is maxed out the EMI itself rises. A two percentage point rise on a 20-year Rs 30 lakh loan lifts the EMI by roughly Rs 3,900 a month, which is why the stress test matters before signing.
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