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CalcTortoise

Step-by-step guide

Can I afford this home loan without regret?

Three numbers: your salary, the price, and your own money. See your EMI and whether the house is safe to buy.

Written by the CalcTortoise editorial team · How we work

Your numbers

Assumed: 8.5% interest, 20 years, no other EMIs, spending 35% of salary, ₹4 lakh kept aside, rent ₹25,000, stamp duty 7%, bank limit 50%. Change
years

Food, bills, school fees, insurance — not rent or EMIs.

Your EMI on this house

₹38,054

₹43.85 lakh loan for 20 years at 8.5%. ₹39,946 a month left after EMIs and spending.

Most the bank allows₹55.56 lakhthis house is within itOpen the calculator →
Your own money needed₹15 lakhincludes ₹3.85 lakh stamp duty
If rates rise 2%EMI +₹5,725₹43,779 a monthOpen the calculator →
If your income stops4 monthsyour savings carry you
Buy or keep rentingBuying wins in year 6over 15 years, by ₹24.85 lakhOpen the calculator →One extra EMI a year₹9.03 lakh savedloan ends 3 years 3 months earlyOpen the calculator →
Why these numbers?
  • Banks let all your EMIs take about 50% of take-home; RBI caps the loan at 80% of this house’s value.
  • Stamp duty and registration always come from your own money.
  • Rent vs buy assumes rent rising 7% a year, the house gaining 6% and spare money invested at 10%.
  • Savings kept aside after buying: ₹4 lakh.

Sources: RBI Master Circular – Housing Finance (RBI/2024-25/11), 2 April 2024 (loan-to-value limits; stamp duty left out of the house value); RBI circular RBI/2023-24/55 (choice of EMI or tenure when a floating rate changes).

Frequently asked questions

How much EMI is safe on my salary?

Banks usually let all your EMIs take up to about 50% of your take-home pay. That is the most they allow, not a comfortable level: in the example, a ₹1,20,000 salary with ₹42,000 of other spending leaves ₹39,946 a month after a ₹38,054 EMI.

How much money do I need of my own to buy a house?

RBI lets banks lend at most 90% of the house value for loans up to ₹30 lakh, 80% up to ₹75 lakh and 75% above that. You pay the rest plus stamp duty and registration. For a ₹55 lakh house at 7% stamp duty, that is at least ₹14.85 lakh — and keep a cushion on top.

What if home loan rates go up?

With a floating rate, your bank can raise the EMI or add months to the loan. On a ₹43.85 lakh loan for 20 years, a 2% rise from 8.5% adds ₹5,725 to the EMI. Check that you could still pay it.

Is it better to rent or buy?

It depends on the price compared with the rent, how fast both rise, and what your money would earn if you did not buy. Step 4 runs the Rent vs Buy calculator on your numbers; change its assumptions there.

Does one extra EMI a year really help?

Yes, because every rupee prepaid stops earning interest for the bank. In the example, one extra EMI a year clears a 20-year loan 3 years sooner and saves ₹9.03 lakh of interest.

Calculators this guide uses

More guides

Last updated 10 October 2026. For information only — not financial advice. Check the final figures with your lender or bank.