How much house can I afford based on my salary?

Your affordability is the maximum loan you qualify for plus your down payment, minus a buffer for stamp duty, registration fees, and other transaction costs. The Ganakam affordability calculator works backward from your net income to find this ceiling.

How much down payment do I need to buy a home?

Lenders typically fund 75% to 90% of the property agreement value (LTV ratio). You must fund the remaining 10% to 25% out-of-pocket, along with the full cost of stamp duty and registration fees.

What additional costs come on top of the property price?

On top of the agreement value, you must pay state-specific stamp duty and registration fees (5–11%), home loan processing fees, brokerage commissions (1–2%), GST (on under-construction property), and interior setup costs.

Disclaimer: Financial lenders use varying criteria to approve home loans. This guide outlines mathematical budgeting frameworks and is not an offer or guarantee of loan approval.

How Much House Can You Afford? (2026)

Reviewed for Budget 2025 • Last updated 27 June 2026 • by Sandesh Dhulekar

Direct Answer: Your affordable property price is roughly the maximum home loan you qualify for (based on income and existing EMIs) plus your down payment, minus a buffer for stamp duty and registration (typically 5–11%). For example, on a ₹1 lakh monthly income with ₹20 lakh saved for a down payment, you might afford a property of around ₹75–78 lakh. The calculator below works this out from your income, savings, and the costs specific to your state.

Calculate your exact property price ceiling: Run your income and savings in our interactive Home Affordability Calculator to estimate a realistic property budget.

The Home Affordability Formula

To compute a realistic buying budget, you must work backward from your income and savings:

Max Property Price = (Max Eligible Home Loan + Down Payment Savings) / (1 + State Stamp Duty & Registration Rate)

1. Sizing Your Home Loan: The FOIR Rule

Lenders check your **Fixed Obligations to Income Ratio (FOIR)**. They typically cap all monthly debt payments (including your future home loan EMI plus existing car/personal loans) at **50% of your net monthly income**.

For example, if your net monthly salary is ₹1,00,000 and you have an existing car loan EMI of ₹10,000, your maximum allowed home loan EMI is:

Maximum Allowed EMI = (₹1,00,000 × 50%) - ₹10,000 = ₹40,000 per month

At an 8.5% interest rate for 20 years, a ₹40,000 monthly EMI can support a home loan of approximately ₹46 Lakhs.

2. The Down Payment Requirement

Under RBI guidelines, banks can only fund a percentage of the property value (Loan-to-Value, or LTV ratio):

Property value up to ₹30 Lakhs: Up to 90% LTV (10% down payment needed).
Property value ₹30 Lakhs to ₹75 Lakhs: Up to 80% LTV (20% down payment needed).
Property value above ₹75 Lakhs: Up to 75% LTV (25% down payment needed).

3. Surcharges Buyers Most Often Forget

Many buyers exhaust their savings on the down payment, forgetting that state-specific stamp duty and registration fees add significant out-of-pocket costs:

Tamil Nadu: Adds 11% all-in (7% duty + 4% registration).
Maharashtra: Adds 6% (7% in Mumbai/MMR due to the 1% Metro Cess).
Delhi: Adds 5% to 7% depending on gender.

Read our complete comparative study of state rates: Stamp Duty Charges Across Indian States.

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Setting a Safe Budget Buffer

Beyond the property price, ensure you maintain a cash reserve for brokerage (typically 1% to 2% for resale property), GST (1% or 5% on under-construction flats), legal check charges, and interiors. It is widely recommended to keep a buffer of 15% of your property value in liquid cash before signing an agreement.