Short answer: FOIR (Fixed Obligations to Income Ratio) = your total monthly EMIs and fixed obligations ÷ your net monthly income × 100. If you take home ₹50,000 and pay ₹10,000 in EMIs, your FOIR is 20%. Most lenders want it to stay below about 50% to 60% after the new loan, so FOIR decides how much more you can borrow.
Last updated: 12 October 2026. Figures are worked examples using the standard EMI formula. Your lender’s offer and Key Fact Statement (KFS) decide the real numbers.
Use the quick calculator below, our full FOIR eligibility calculator, or download the free Excel version to work it out offline.
The FOIR formula
FOIR = (Existing EMIs + other fixed monthly obligations + EMI of the new loan) ÷ Net monthly income × 100
- Net monthly income is what reaches your bank account after tax and PF, plus other income a lender can verify (rent with an agreement, for example).
- Fixed obligations are EMIs on every loan: home, car, bike, personal, consumer durable and loan app loans.
- Credit cards: some lenders count a share of your outstanding card balance, often around 5%, even if you pay it in full each month.
- Not counted: rent, school fees, groceries and SIPs. Lenders know about these costs, which is why they leave room below 100%.
A worked example
Neha takes home ₹50,000 a month. She pays a personal loan EMI of ₹8,000 and has ₹40,000 outstanding on her credit card.
| Step | Calculation | Result |
|---|---|---|
| Card obligation (5% of balance) | ₹40,000 × 5% | ₹2,000 |
| Existing obligations | ₹8,000 + ₹2,000 | ₹10,000 |
| FOIR today | ₹10,000 ÷ ₹50,000 | 20% |
| EMI on a new ₹3 lakh loan at 18% for 36 months | EMI formula | ₹10,846 |
| FOIR after the new loan | (₹10,000 + ₹10,846) ÷ ₹50,000 | 41.7% |
| Room for a new EMI at a 50% limit | ₹50,000 × 50% − ₹10,000 | ₹15,000 |
| Largest loan that fits (18%, 36 months) | Present value of that EMI | ₹4.15 lakh |
At 42%, Neha is comfortably inside most lenders’ limits. Her score, job stability and recent credit history decide the rest.
Quick FOIR check
Can you afford the EMI? Quick FOIR check
Lenders look at how much of your take-home pay already goes to EMIs (FOIR). Figures stay in your browser.
What FOIR do lenders accept?
There is no single rule. Each bank and NBFC sets its own limits, and they move with your income, the loan type and your credit history. As a rough guide:
| FOIR after the new loan | How lenders tend to see it |
|---|---|
| Up to 40% | Comfortable. Most lenders are happy if the rest of your profile is fine. |
| 40% to 50% | Acceptable for many lenders, especially with a good credit score. |
| 50% to 60% | Borderline. Some lenders allow it for higher salaries or secured loans. |
| Above 60% | Usually declined, or offered a smaller amount. |
Lenders often allow a higher FOIR on home loans and for higher incomes, because more money is left over after essentials. At lower salaries, many keep the limit lower.
How much can you borrow on your salary?
We worked out the numbers for common take-home salaries, with and without existing EMIs:
| Net salary | Largest loan at 50% FOIR (no existing EMIs, 24%, 36 months) | Guide |
|---|---|---|
| ₹15,000 | ₹1.91 lakh | Personal loan on ₹15,000 salary |
| ₹20,000 | ₹2.55 lakh | Personal loan on ₹20,000 salary |
| ₹25,000 | ₹3.19 lakh | Personal loan on ₹25,000 salary |
| ₹30,000 | ₹3.82 lakh | Personal loan on ₹30,000 salary |
| ₹40,000 | ₹5.10 lakh | Personal loan on ₹40,000 salary |
| ₹50,000 | ₹6.37 lakh | Personal loan on ₹50,000 salary |
These are upper limits based on FOIR alone. Lenders may offer less based on your credit score, employer and how long you have been in your job.
How to improve your FOIR
- Close small loans first. A ₹20,000 app loan with a ₹7,000 monthly repayment hurts your FOIR far more than its size suggests.
- Choose a longer tenure. A lower EMI improves FOIR, though you pay more interest in total.
- Pay down your credit card balance before you apply, if your lender counts it.
- Add a co-applicant with a steady income. Lenders add both incomes.
- Show all your income, including verifiable rent or a regular second income, with documents.
- Consolidate several EMIs into one with a longer tenure. Compare the total cost first: see EMI consolidation in India.
Know your FOIR? See which personal loan offers fit your salary and existing EMIs.
Personal loan by salary: ₹15,000 · ₹20,000 · ₹25,000 · ₹30,000 · ₹40,000 · ₹50,000 · How FOIR works
EMI by loan amount: ₹1 lakh · ₹2 lakh · ₹3 lakh · ₹5 lakh · ₹10 lakh · ₹15 lakh · ₹20 lakh · EMI calculator
Frequently asked questions
What is a good FOIR for a personal loan?
Below about 40% after the new loan is comfortable for most lenders. Many lenders accept up to 50%, and some go to 60% for higher salaries.
Is FOIR calculated on gross or net salary?
Most lenders use net monthly income, the amount credited to your bank account after tax and PF deductions.
Does a credit card count in FOIR?
Often, yes. Some lenders count a share of your outstanding balance, commonly around 5%, as a monthly obligation.
Is there a FOIR calculator in Excel?
Yes. Download our free FOIR Excel calculator. It works out your FOIR, the EMI on a new loan, and the largest loan that fits your lender’s limit, plus a grid of loan amounts by rate and tenure.
How is FOIR different from the debt-to-income ratio?
They measure the same idea. Indian lenders call it FOIR and usually calculate it on net monthly income.
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.