How Much Home Loan Can I Afford on My Salary? (2026 Guide)
Banks will lend you a lot — but how much can you comfortably repay? Here's the simple rule lenders use and how to find your real number.
Before you fall in love with a property, it's worth knowing how much home loan your salary can actually support. Banks may sanction a large amount, but "eligible" and "affordable" are not the same thing. This guide walks through how lenders decide, the rule of thumb you can use in seconds, and how to pressure-test the number against your own budget.
The 40% EMI rule
Most lenders want your total EMIs (this loan plus any existing ones) to stay under roughly 40–50% of your net monthly income. So the first step is knowing your real take-home pay — not your CTC. If you're unsure, calculate it with the in-hand salary calculator, which accounts for PF, professional tax and TDS.
Once you know your net salary, a safe home-loan EMI is about 40% of it. For example, on a ₹1,00,000 net salary, keeping EMIs near ₹40,000 leaves enough for living costs, savings and emergencies.
From affordable EMI to loan amount
Your affordable EMI, the interest rate, and the tenure together decide the loan amount. The quickest way to see this is to work backwards in the EMI calculator: try different loan amounts at today's rate and your preferred tenure until the EMI lands near your 40% figure. That loan amount is your realistic budget.
What else affects eligibility
- Existing EMIs: car loans, personal loans and credit-card dues all reduce how much you can borrow.
- Credit score: a higher CIBIL score gets you a better rate, which raises your eligible amount.
- Tenure and age: a longer tenure lowers the EMI (raising eligibility) but increases total interest.
- Co-applicant: adding a working spouse's income can significantly boost the sanctioned amount.
Don't forget the down payment and extras
Lenders finance about 75–90% of the property value, so you'll need 10–25% as a down payment, plus stamp duty, registration and interiors. Budget for these separately — they're not part of the loan.
The bottom line
A comfortable home loan is one where the EMI sits near 40% of your take-home pay and still leaves room to save. Find your net salary with the salary calculator, then dial in the loan amount in the EMI calculator — that's your affordability number, not whatever maximum the bank is willing to sanction.