FOIR Calculator
FOIR% = (Existing EMIs + Proposed EMI) / Net Monthly Income × 100
FOIR, the Fixed Obligation to Income Ratio, is the share of your net monthly income that already goes to fixed payments: EMIs on existing loans, credit card EMIs or minimum dues, and the new EMI you are asking for. Lenders use it as a quick test of repayment capacity. A borrower who spends most of their income on obligations has little room to absorb a bill, a pay cut, or a rate rise, so lenders set a ceiling and reduce or decline the loan when a borrower would go over it.
With the default numbers, existing EMIs of ₹8,000 plus a proposed EMI of ₹12,000 on ₹60,000 net income give a FOIR of 33.33%, which falls in the comfortable band. Ceilings vary by lender, product, and income, and the bands shown here (under 40%, 40–50%, over 50%) are conventions, not regulatory limits.
Your Details
This is an estimate, not an offer. The figures above are indicative calculations based on the numbers you entered and standard industry formulas/rules of thumb. They are not a loan/insurance quote, a pre-approval, or a guarantee of approval by any bank, NBFC, or insurer. Actual eligibility, interest rate, premium, and approval are decided solely by the lender/insurer after their own underwriting and verification.
How to Improve Your FOIR Before Applying
FOIR falls when your monthly obligations go down or your income goes up.
- Clear or shrink existing EMIs. Closing a small loan removes its EMI from the calculation. In the example above, if existing EMIs were ₹20,000 instead of ₹8,000, FOIR would be 53.33%, in the high band; clearing ₹12,000 of them brings it back to 33.33%.
- Avoid taking on new EMIs just before you apply. A new phone or appliance EMI counts too.
- Ask for a smaller amount or a longer tenure. Either lowers the proposed EMI, though a longer tenure raises total interest. The Personal Loan EMI Calculator shows the trade-off.
- Add a co-applicant. A documented second income raises the denominator. With combined income of ₹80,000, the default example drops from 33.33% to 25%.
- Include all income the lender will accept, and keep the documents ready.
- Pay down card balances so that minimum dues shrink; see the Minimum Due Trap Calculator.
A lower FOIR helps, but it does not guarantee approval: lenders also weigh your credit score, employment stability, and other factors. To see what you might be able to borrow, try thePersonal Loan Eligibility Calculator.
Frequently Asked Questions
What is a "good" FOIR?
As an industry rule of thumb, below 40% is generally considered comfortable, 40–50% is moderate, and above 50% is considered high risk by most lenders. These are conventions, not fixed regulatory thresholds.
What counts as an "existing EMI" for this calculation?
Any existing fixed monthly obligation — home loan, car loan, personal loan, or credit card EMI/minimum due — that you are currently paying.
Does a lower FOIR guarantee loan approval?
No. FOIR is one factor among many (credit score, employment stability, existing relationship with the lender, etc.) that lenders consider during underwriting.