Home Affordability Calculator
Buying a home is India's largest financial decision — yet most buyers only look at EMI. This calculator runs the full affordability test: is your down payment at least 20% of the price, and is your EMI within 40% of your take-home pay? It then builds the true 20-year cost of ownership, adding stamp duty, registration, brokerage, furnishing, maintenance, and interest on top of the sticker price — so you can see what the home actually costs, not just what it costs to buy.
- Principal
- Interest
- Ancillary costs
- Loan amount
- $9,280,000.00
- Down payment
- $2,320,000.00
- EMI as % of salary
- 26.87%
- Total interest paid
- $6,683,212.42
- Stamp duty & registration (~7%)
- $812,000.00
- Brokerage & legal (~1.5%)
- $174,000.00
- Furnishing & setup (~7.5%)
- $870,000.00
- Maintenance (20 yrs)
- $200,000.00
- Property tax (20 yrs)
- $200,000.00
- True cost of home (20-yr)
- $20,539,212.42
- Max affordable price (40% EMI rule)
- $17,265,697.71
Affordability test — ✅ Affordable — both checks pass • Down payment: 20% ≥ 20% ✅ • EMI: 26.9% of net salary ≤ 40% ✅ • True cost: ₹116.0L sticker grows to ₹205.4L once you add interest, stamp duty, registration, furnishing, and 20 years of maintenance • Max affordable at 40% EMI rule: ₹172.7L
What this calculator tells you
Runs the two-part 20-40 affordability test (down payment ≥ 20%, EMI ≤ 40% of net salary) that most EMI calculators skip, and then builds the true 20-year cost of ownership — adding stamp duty, registration, brokerage, furnishing, and maintenance to the loan interest — so buyers see the full economic cost of the investment, not just the sticker price.
Frequently asked questions
What is the 20-40 affordability rule?+
It has two checks: (1) your down payment should be at least 20% of the home price, ensuring you have built meaningful savings before buying; (2) your monthly EMI should not exceed 40% of your net take-home salary, leaving enough room for savings, emergencies, and everyday expenses. Both must pass for the home to be considered comfortably affordable.
Why is the true cost so much higher than the home price?+
On a 15-year loan at 8%, interest alone adds roughly 55–60% of the principal to your total outgo. Stamp duty, registration, brokerage, legal fees, and furnishing typically add another 15–20% of the home price. Maintenance and property tax over 20 years add further. Together, these costs mean a ₹1 Cr home often costs ₹1.8–2.0 Cr in total economic terms.
Should I choose a shorter or longer loan tenure?+
A shorter tenure (15 years) means higher EMI but far less total interest — roughly 40% less than a 25-year loan at the same rate. A longer tenure lowers EMI strain but maximises the lender's earnings. Financial planners generally suggest keeping tenure short enough that EMI stays within 40% of income, but no longer than 20 years.
How much stamp duty will I actually pay?+
Stamp duty is state-specific. Maharashtra: 5% + 1% metro cess + 1% registration = ~7%. Karnataka: ~5.6% total. Delhi: 4% (women), 6% (men) + 1% registration. Tamil Nadu: 7% + 4% registration. The 7% default in this calculator is a reasonable pan-India estimate — always check with your state's sub-registrar office or a property lawyer before budgeting.
Is home loan interest tax-deductible in India?+
Under the old tax regime: interest paid on a home loan for a self-occupied property is deductible up to ₹2 lakh per year under Section 24(b). Principal repayment up to ₹1.5 lakh per year qualifies under Section 80C. First-time buyers get an additional ₹50,000 deduction under Section 80EEA (subject to conditions). Under the new default regime (post-FY2024-25), these deductions are not available except for let-out properties.
What does "max affordable price" mean?+
It is the highest home price your salary can support at the 40% EMI limit, given your chosen down payment percentage, interest rate, and tenure. If your target price is below this number, the EMI check passes. If it is above, you are over-stretching on EMI.
How it works
The calculator uses the 20-40 affordability rule used by prudent Indian home buyers and endorsed by personal finance advisors.
First, it checks the down payment. A down payment below 20% puts you above the maximum LTV ratio most lenders prefer and forces you to borrow more at a higher risk premium. Meeting the 20% threshold is a signal that you have saved enough before stretching for a property.
Second, it checks the EMI burden. If your EMI exceeds 40% of your net monthly salary, you have too little cash left for savings, emergencies, and living expenses. The EMI formula is the standard reducing-balance calculation: EMI = Loan × [r × (1+r)^n] ÷ [(1+r)^n − 1], where r is the monthly rate and n is the number of months.
Third, it builds the true cost of ownership. The home price is just the starting point. Stamp duty and registration (roughly 5–8% in most states, modelled at 7%), brokerage and legal fees (~1.5%), furnishing and setup (~7.5%), society maintenance, and property tax over 20 years are all added to the total interest you will pay on the loan. The result is the actual economic cost of the investment — often 1.8–2.5× the sticker price.
Finally, the backward calculation shows the highest price your salary can sustain at the 40% EMI limit — so you know your ceiling before negotiating.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-07-05