Loan Affordability Calculator
How it works
This is the EMI calculator run in reverse. EMI takes a loan amount, rate and tenure and computes the monthly payment: E = P·r·(1+r)n / ((1+r)n − 1). This tool starts from the payment instead and solves the same equation for the loan amount, P, so it answers "what can I borrow?" rather than "what will I owe?".
The maximum principal is the loan whose EMI comes out to exactly the payment you entered — borrow more at the same rate and tenure, and the monthly payment would be higher than what you said you could afford.
Frequently asked questions
How is this different from the EMI calculator?
The EMI calculator starts from a loan amount and tells you the monthly payment. This tool asks the opposite question: starting from a monthly payment you can afford, how large a loan does it support? Same formula, solved for the other variable — see the EMI calculator to go the other direction.
My tenure is in years — what do I enter?
Multiply by 12. A 5-year loan is 60 months; a 20-year mortgage is 240.
Does a longer tenure let me afford a bigger loan?
Yes, for the same monthly payment — stretching the tenure spreads that payment over more months, so more of it goes toward principal in total. The trade-off is that a longer tenure also means more months of interest accruing, so the total interest paid over the life of the loan rises even though the maximum principal does too.