This calculator estimates the maximum loan you can afford based on your disposable income (income – expenses), assuming a standard EMI-to-income ratio of 40% and an average interest rate of 10%.
It helps you understand how much loan you can take without straining your finances, making it easier to plan for home loans, personal loans, or other financial commitments.
Loan = EMI × {(1 + r)n – 1} ÷ [r × (1 + r)n]
Where EMI = 40% of disposable income, r = monthly rate, n = tenure in months
Understanding your loan affordability is crucial for financial planning. This tool helps you:
Interestartical is your go-to platform for financial calculators and tools. We provide a range of calculators including SIP, EMI, Loan, PPF, and Tax calculators to help you manage your finances effectively.
Our tools are designed to simplify complex financial calculations, making it easier for you to plan your investments, loans, and taxes.
The loan amount is calculated based on your eligible EMI, which is determined by your disposable income and the assumed EMI-to-income ratio.
The calculator uses an average interest rate of 10% per annum, which is a common rate for personal loans in many regions.
Currently, the calculator uses a fixed interest rate of 10%. However, you can adjust your income and expenses to see how it affects your loan eligibility.
The accuracy of the calculator depends on the inputs you provide. While it uses standard assumptions, actual loan eligibility may vary based on individual circumstances.
This calculator is primarily designed for personal loans. For business loans, it's advisable to consult with a financial advisor or use a specialized business loan calculator.
You can share your results via WhatsApp by clicking the "Share on WhatsApp" button after calculating your loan affordability.
This is an estimate. Actual loan eligibility may vary based on your credit score, obligations, and lender criteria.