Loan Eligibility Calculator

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A Loan Eligibility Calculator estimates the maximum loan amount an individual or business can borrow based on income, expenses, interest rate, and repayment capacity. More info →

Input

Enter EMI affordability details to estimate loan eligibility.

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How This Calculator Works

This calculator works the EMI formula backwards. Instead of asking what the EMI is for a loan, it asks how big a loan a given EMI can repay at a certain rate and tenure. Enter the monthly amount you can afford to get an estimate of how much you could borrow.

The Formula

Eligible Loan = EMI × [(1 + r)ⁿ − 1] ÷ [r × (1 + r)ⁿ]

r = annual rate ÷ 12 ÷ 100 · n = tenure in years × 12 · At 0% interest, Eligible Loan = EMI × n

What Each Input Does

Affordable EMI: The most you can comfortably pay each month.
Interest Rate (%): The lender's annual rate. A higher rate means a smaller loan for the same EMI.
Tenure (Years): How long you will repay. It is converted to months. A longer tenure means a bigger loan.

Step by Step

The annual rate is converted to a monthly rate, and years to months.
The present-value factor (how much 1 per month for n months is worth today) is worked out.
The affordable EMI is multiplied by that factor.

Reading the Result

Eligible loan – an estimate only. Lenders also look at income, other debts and credit history.

Quick Example

Affordable EMI 10,000, interest rate 10%, tenure 5 years (60 months). The eligible loan is about 470,654. Over 60 months you would pay 600,000, of which roughly 129,346 is interest.