Home Affordability Calculator India: How Much House Can You Actually Afford?

• Banks use FOIR (Fixed Obligation to Income Ratio) — your total EMIs should not exceed 40–50% of net monthly income. But the 28% rule (spend no more than 28% of gross income on housing) is a better personal finance guardrail.
• The "20× annual income" rule for maximum home price is India's most practical affordability benchmark: ₹12 lakh CTC → max home price ₹2.4 crore. Banks may approve more, but serviceability over 20 years matters more than maximum eligibility.
• Affordability calculations must include down payment readiness, stamp duty & registration (8–10% of price), home loan processing fee, interior costs, and emergency fund — not just the EMI.
• "How much loan can I get?" and "How much home can I afford?" are different questions. Banks lend based on repayment capacity; affordability is about long-term financial health.

Use our free Home Affordability Calculator to find your affordable home price range, required down payment, monthly EMI, and total cost of home ownership.

The Three Affordability Rules — Which One Applies to You?

Rule 1: The 28% Gross Income Rule (Conservative — Recommended)

Maximum monthly home loan EMI ≤ 28% of gross monthly income

Example — ₹15 lakh annual CTC (₹1.25 lakh/month gross): Max EMI = ₹1,25,000 × 28% = ₹35,000/month

At 8.75% interest for 20 years, ₹35,000 EMI supports a loan of approximately ₹37.2 lakh With 20% down payment: affordable home price ≈ ₹46.5 lakh

Rule 2: The FOIR Rule (Bank Standard)

Total EMIs (home + car + personal loans) ≤ 40–50% of net monthly take-home

Example — ₹15 lakh CTC, ₹1.05 lakh net take-home, ₹10,000 car loan EMI: Total EMI allowance = ₹1,05,000 × 45% = ₹47,250 Available for home EMI = ₹47,250 − ₹10,000 = ₹37,250/month Loan this supports: approximately ₹39.6 lakh With 20% down: ₹49.5 lakh home price (bank maximum)

Rule 3: The 20× Annual Income Rule (India Practical Benchmark)

Maximum home price = 20× gross annual income

Example — ₹15 lakh CTC: Max home price = 20 × ₹15,00,000 = ₹3 crore (liberal)

Most financial advisors suggest 15× for comfortable affordability: Conservative max = 15 × ₹15,00,000 = ₹2.25 crore

Home Affordability by Income Level (India, 2025)

Assumptions: 20% down payment, 8.75% home loan, 20-year tenure, no other loans

Annual CTC	Net Monthly Take-Home	Comfortable EMI (28%)	Max Loan (28% rule)	Affordable Home Price
₹6 lakh	₹43,000	₹16,800	₹17.9 lakh	₹22.3 lakh
₹8 lakh	₹57,000	₹22,400	₹23.8 lakh	₹29.8 lakh
₹10 lakh	₹70,000	₹28,000	₹29.8 lakh	₹37.2 lakh
₹12 lakh	₹83,000	₹33,600	₹35.7 lakh	₹44.6 lakh
₹15 lakh	₹1,01,000	₹42,000	₹44.7 lakh	₹55.8 lakh
₹20 lakh	₹1,32,000	₹56,000	₹59.6 lakh	₹74.5 lakh
₹25 lakh	₹1,63,000	₹70,000	₹74.5 lakh	₹93.1 lakh
₹30 lakh	₹1,90,000	₹84,000	₹89.4 lakh	₹1.12 crore
₹50 lakh	₹3,06,000	₹1,40,000	₹1.49 crore	₹1.86 crore

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The True Cost of Buying a Home in India

The sticker price of a home is never what you actually pay. Here is the complete cost:

For a ₹60 lakh property in Bengaluru:

Cost Component	Rate / Amount	Notes
Property price	₹60,00,000	Agreed sale price
Down payment (20%)	₹12,00,000	From own funds
Stamp duty (Karnataka 5%)	₹3,00,000	State tax, one-time
Registration (1%)	₹60,000	Sub-registrar office
Home loan processing fee (0.5%)	₹24,000	On ₹48L loan
Legal and technical charges	₹15,000	Bank-appointed lawyer/valuer
MODT stamp duty (0.1–0.5%)	₹10,000	Memorandum of deposit of title deed
Interior/renovation (basic)	₹3,00,000	Varies enormously
Home insurance (Year 1)	₹8,000	Structure + content
Shifting/moving costs	₹15,000
Maintenance deposit	₹50,000	Builder/society advance
Total upfront own-funds needed	₹19,82,000

You need nearly ₹20 lakh in cash to buy a ₹60 lakh property — not ₹12 lakh (the 20% down payment alone).

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Dual Income Home Affordability

For couples with dual income, banks consider combined net income:

Example — Spouse 1: ₹15L CTC, Spouse 2: ₹10L CTC Combined net take-home: ₹1,01,000 + ₹70,000 = ₹1,71,000/month FOIR 45%: ₹76,950 max combined EMI Loan supported: approximately ₹81.9 lakh With 20% down: ₹1.02 crore home price

Joint home loan tax benefit: Both borrowers can each claim ₹2L interest deduction (Section 24) + ₹1.5L principal deduction (Section 80C, old regime) — effectively doubling the household tax benefit.

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Affordability vs. Eligibility: The Critical Difference

Measure	What It Tells You	Example
Bank eligibility	Maximum loan the bank will approve	₹55 lakh (based on FOIR)
Comfortable affordability	Loan where EMI ≤ 28% of gross income	₹40 lakh
Recommended purchase price	Total property you should target	₹50 lakh (using ₹40L loan + ₹10L down)

Banks approve loans that maximise their business — not your financial wellbeing. A loan that uses 50% of your income on EMI leaves little for savings, emergencies, children's education, or retirement.

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Ready-Reckoner: City-Wise Property Price vs. Income Required

To comfortably afford a 2BHK flat (20% down, 28% EMI rule):

City	Typical 2BHK Price	Annual Income Required	Monthly EMI
Mumbai (suburb)	₹1.2–₹1.8 crore	₹45–₹65 lakh	₹1,05,000–₹1,57,000
Bengaluru (good area)	₹80 lakh–₹1.2 crore	₹30–₹45 lakh	₹70,000–₹1,05,000
Delhi NCR (Noida/Gurgaon)	₹70 lakh–₹1.2 crore	₹26–₹45 lakh	₹61,000–₹1,05,000
Chennai	₹55–₹90 lakh	₹20–₹33 lakh	₹48,000–₹79,000
Hyderabad	₹55–₹80 lakh	₹20–₹30 lakh	₹48,000–₹70,000
Pune	₹55–₹90 lakh	₹20–₹33 lakh	₹48,000–₹79,000
Kolkata	₹40–₹65 lakh	₹15–₹24 lakh	₹35,000–₹57,000
Tier-2 cities	₹25–₹50 lakh	₹9–₹19 lakh	₹22,000–₹44,000

Stark reality: For a ₹1 crore apartment in Bengaluru with 20% down payment, you need combined household income of approximately ₹37–40 lakh annually for comfortable affordability. Most tech professionals at 5–8 years experience earn this — but only at 30+ years old, when 20-year loans until age 50–55 are still very manageable.

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FAQ

How much home loan can I get on ₹50,000 salary?

At ₹50,000 net take-home, banks allow 40–50% FOIR = ₹20,000–₹25,000 for home loan EMI (assuming no other EMIs). At 8.75% for 20 years, this supports a loan of approximately ₹21.3–₹26.6 lakh. With 20% down payment, affordable home price: ₹26.6–₹33.2 lakh. In most Indian metros this buys a studio or 1BHK in the outskirts; in tier-2 cities this can buy a comfortable 2BHK.

What is the 28% rule for home affordability?

The 28% rule suggests your monthly housing expense (EMI) should not exceed 28% of your gross monthly income. It originates from US mortgage lending standards but is a useful conservative benchmark anywhere. Indian banks typically allow up to 40–50% (FOIR), but the 28% rule leaves buffer for savings and emergencies — particularly important for single-income households.

Should I buy now or wait until I have more savings?

The right time to buy is when: (1) you have 20–25% down payment plus all ancillary costs saved, (2) EMI fits comfortably within 28–35% of income, (3) you plan to stay in the city for 5+ years, (4) your emergency fund (6 months expenses) is intact separately. Buying before meeting these conditions stretches finances dangerously — property price appreciation rarely compensates for financial stress.

How does PMAY subsidy improve affordability?

For households with annual income below ₹18 lakh, PMAY (Pradhan Mantri Awas Yojana) provides upfront interest subsidy credited to your loan account, effectively reducing the principal. MIG-I (₹6–12L income): ₹2.35 lakh subsidy. MIG-II (₹12–18L): ₹2.30 lakh. This directly reduces your EMI by ₹1,500–₹2,000/month — meaningful over 20 years.