Example Data Table
| Scenario | Monthly Income | Existing Obligations | FOIR Limit | Proposed EMI | Calculated FOIR | Eligibility |
|---|---|---|---|---|---|---|
| Conservative | PKR 200,000 | PKR 40,000 | 40% | PKR 35,000 | 37.50% | Eligible |
| Balanced | PKR 250,000 | PKR 60,000 | 50% | PKR 70,000 | 52.00% | Not Eligible |
| Stress Tested | PKR 300,000 | PKR 75,000 | 55% | PKR 65,000 | ~52.5%* | Eligible |
Formula Used
FOIR measures how much of your monthly income is committed to fixed obligations:
This tool also estimates your Max Eligible EMI:
If you provide interest rate and tenure, the calculator estimates loan size using the standard EMI relation. If rate is zero, principal ≈ EMI × months.
How to Use This Calculator
- Enter your monthly income sources and existing fixed obligations.
- Choose a FOIR limit that matches your lender or comfort level.
- Select a check mode: proposed EMI or desired loan amount.
- Optionally apply stress test percentages for safer planning.
- Click Calculate to see eligibility and limits.
- Use Download CSV or Download PDF from the results card.
Typical FOIR ranges in retail lending
Many lenders prefer FOIR between 40% and 55% for salaried applicants, while conservative programs may cap near 35%–45%. Higher limits, such as 60%+, are usually reserved for strong profiles, stable income, and low volatility expenses. In this calculator, the FOIR limit controls the maximum share of adjusted income that can go to fixed payments each month.
How income composition changes eligibility
Net salary and verified recurring income typically receive full credit, but variable sources often face a haircut. A 10%–30% reduction is common for bonuses, commissions, or seasonal receipts to protect against month-to-month swings. Use the Income Haircut input to model that conservatism and see how eligibility and max EMI change when usable income is reduced.
What counts as fixed obligations
Fixed obligations commonly include existing loan EMIs, credit-card minimum dues, and any contractual payments that must be serviced monthly. Some lenders also factor in insurance premiums, rent commitments, or support payments if they are persistent and documented. The Obligation Uplift field helps stress test these outflows, reflecting possible rate resets or higher minimum payments.
Linking EMI capacity to loan size
Once the calculator finds your Max Eligible EMI, it can estimate a corresponding loan amount using the standard amortization relationship with your chosen interest rate and tenure. For example, a max EMI of 50,000 at 18% for 60 months implies a materially smaller principal than the same EMI at 14% or 84 months. Small rate changes can noticeably shift affordability.
Practical ways to improve FOIR
If your calculated FOIR is above the limit, reduce the proposed EMI or lower existing obligations. Paying down revolving balances can cut card minimums quickly, and refinancing a high-rate loan may reduce the monthly installment. Increasing verified income also helps: every additional 10,000 of usable monthly income raises eligible fixed-payment capacity by 4,000 at a 40% limit. Aim to keep at least 10% income uncommitted for utilities, groceries, and surprises.
FAQs
What is FOIR in simple terms?
FOIR is the share of your monthly income used to pay fixed obligations like EMIs and card minimums. A lower FOIR generally signals healthier cash flow and improves approval chances.
What is the difference between EMI mode and loan-amount mode?
EMI mode checks whether a known monthly installment fits your FOIR limit. Loan-amount mode first estimates the EMI from rate and tenure, then evaluates the same FOIR test.
Should I use gross income or net income?
Use verified take-home or net monthly income after mandatory deductions. If you only know gross pay, apply a haircut to approximate net cash available for repayments.
How do income haircut and obligation uplift affect results?
Income haircut reduces usable income by a chosen percentage. Obligation uplift increases your existing obligations by a chosen percentage. Together they create a conservative, stress-tested FOIR to avoid over-borrowing.
Is the max eligible loan number exact?
No. It is an estimate based on your rate, tenure, and the max eligible EMI. Lenders may apply different pricing, fees, rounding rules, or additional eligibility checks.
What can I do if I am not eligible?
Lower the proposed EMI, reduce existing obligations, extend tenure, or shop for a lower rate. Paying down revolving balances and closing small loans can quickly improve FOIR.