EMI Reverse Calculator
Find the maximum loan amount you can afford based on your desired monthly EMI, interest rate, and loan tenure. Perfect for planning home, car, or personal loans within your budget.
Your EMI Budget
Result
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Maximum Loan Amount
💡 Formula
Reverse EMI
- P = EMI × [(1+r)ⁿ − 1] / [r × (1+r)ⁿ], where EMI = monthly payment budget, r = monthly interest rate, n = total months.
- This inverts the standard EMI formula to find principal.
📖 How to use
Step by Step
- Enter the monthly EMI you can comfortably afford
- Set the expected interest rate (home ~8.5%, car ~9%, personal ~12%)
- Choose loan tenure
- Get the maximum loan amount + interest overview
🎯 Smart Tips
EMI Budgeting
- Keep total EMIs under 40% of take-home salary
- Longer tenure = bigger loan but more interest paid
- Even 0.5% lower rate saves lakhs over 20 years
- Make prepayments when possible to reduce interest
Frequently Asked Questions
What percentage of salary should EMI be?▾
Financial advisors recommend keeping total EMI obligations below 40% of take-home salary. Banks typically approve loans where EMI is within 40–50% of net monthly income, but 30–35% is a healthier target.
Does a longer tenure always mean a bigger loan?▾
Yes, a longer tenure increases the loan amount for the same EMI. However, you pay significantly more total interest. A 20-year loan at 8.5% pays ~90% of the principal as interest, versus ~45% for a 10-year loan.
How can I reduce my home loan interest?▾
Negotiate a lower rate with your bank, make partial prepayments, increase EMI whenever income grows, consider balance transfer to a lower-rate bank, and choose the shortest tenure you can afford.