Home Loan Affordability Calculator

Loan affordability calculator

The loan affordability calculator helps you calculate how much loan you can afford. This is calculated based on inputs such as:

• EMI (Equated monthly installments)- fixed payment made by a borrower to the lender every month to payoff both interest and principal.
• Loan tenure- duration for which the EMI is to be paid.
• Rate of interest.

This calculator can be used for any type of loans including home loan, personal loan, car loan etc. It will help you assess the impact of increasing /decreasing EMI on the loan amount. Similarly, by increasing or decreasing the repayment period (loan tenure), you can see the effect on the maximum amount you can borrow. Suppose after entering all the inputs, if the loan amount comes out to be less than the loan amount you require, you can increase the loan tenure or increase the EMI and arrive at an optimum combination. This calculator doesn't tell you if you will qualify for the loan. Qualification depends upon many factors including your credit rating.

Assumptions:

• The interest rate remains fixed during the loan tenure.
• Interest rate is compounded monthly .
• Processing & other charges which may applicable as per the rules of banks and other lending institutions are not taken into account.

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