Home Affordability Calculator
Determine the maximum home purchase price and loan amount you can qualify for based on monthly household income, existing monthly debt obligations, and down payment savings.
Sensitivity Analysis
Evaluate how variations in key operational drivers impact Maximum Affordable Home Price.
| Sensitivity Case | Assumption Shift | Driver Value | Maximum Affordable Home Price | Impact vs Base |
|---|
Formula & Methodology
Max Home Price = Max Loan Amount + Down PaymentGross IncomeTotal monthly take-home salary or business earnings.
Other DebtsExisting car loan, personal loan, or credit card EMIs.
Down PaymentLiquid savings allocated toward purchase.
Practical Worked Example
A family with Rs 1,50,000 monthly income, Rs 15,000 in car loan EMIs, and Rs 10,00,000 down payment savings evaluates home affordability at 8.5% for 20 years.
Interpretation & Industry Benchmarks
Lenders evaluate debt-to-income (DTI) or Fixed Obligation to Income Ratio (FOIR) to prevent borrower default.
Leaves generous cushion for savings and lifestyle expenses.
Stretches household finances during unexpected emergencies.
Industry Nuance: In addition to purchase price, budget 6%–8% for stamp duty, registration fees, and brokerage costs.
Analytical Limitations
- Actual lender loan sanction depends on credit score (CIBIL / FICO) and property title verification.
Frequently Asked Questions
What is FOIR / DTI?
Fixed Obligation to Income Ratio (FOIR) measures the percentage of your gross monthly income committed to paying debt installments.