FOIR Calculator
Calculate FOIR instantly to check home loan eligibility. Know your debt-to-income ratio, EMI affordability & lender approval chances accurately.
FOIR Calculator (Fixed Obligation to Income Ratio)
FOIR Calculator – Fixed Obligation to Income Ratio
The FOIR Calculator helps you determine your Fixed Obligation to Income Ratio, a key metric used by banks and financial institutions to evaluate loan eligibility. Whether you're applying for a home loan, personal loan, car loan, or business loan, lenders assess FOIR before approving your application.
What is FOIR?
FOIR (Fixed Obligation to Income Ratio) measures the percentage of your monthly income that goes toward loan repayments.
FOIR Formula:
FOIR (%) = (Total Monthly EMI Obligations ÷ Monthly Income) × 100
Total Monthly EMI Obligations include:
- Existing home loan EMIs
- Car loan EMIs
- Personal loan EMIs
- Credit card EMIs
- New proposed EMI
Example Calculation
If your monthly income is ₹80,000 and your total EMIs (including new loan) are ₹40,000:
FOIR = (40,000 ÷ 80,000) × 100 = 50%
This means half your income is used to repay loans.
Ideal FOIR Range
- Below 40% – Excellent
- 40%–50% – Acceptable
- 50%–60% – Risky
- Above 60% – High rejection probability
Why FOIR Matters for Loan Approval
Banks use FOIR to assess repayment capacity. A lower FOIR indicates strong financial health and higher loan approval probability.
How to Reduce FOIR
- Close small existing loans
- Increase down payment
- Extend loan tenure
- Increase declared income (with proof)
- Avoid multiple simultaneous loans
FOIR vs Debt-to-Income Ratio
FOIR is similar to DTI (Debt-to-Income ratio) used globally. In India, banks typically cap FOIR between 50–60% depending on income bracket.
Who Should Use This Calculator?
- Home loan applicants
- Personal loan seekers
- Car loan buyers
- Credit card EMI converters
- Financial planners
Important Note
Actual loan approval depends on credit score, employment stability, and lender policies. FOIR is only one factor in credit underwriting.
Disclaimer
This FOIR calculator provides estimated results. Lending decisions are subject to bank policy and risk assessment guidelines.
Frequently Asked Questions
What is a good FOIR ratio?
A FOIR below 40% is considered excellent. Most lenders prefer FOIR under 50% for loan approval.
Is FOIR same as Debt-to-Income ratio?
Yes. FOIR is similar to DTI used internationally. Both measure income used for loan obligations.
How do banks calculate FOIR?
Banks divide total monthly EMIs by monthly income and multiply by 100 to get FOIR percentage.
Can high FOIR lead to loan rejection?
Yes. FOIR above 60% significantly reduces approval chances.
Does credit card EMI count in FOIR?
Yes. All fixed monthly loan obligations are included in FOIR calculation.
How can I improve my FOIR?
Reduce existing debt, increase income, or choose longer loan tenure to lower EMI burden.