Can I afford a ₹80.0 L house on ₹3.0 L a month?
No — not on these numbers.
- At this price a lender can fund only 75%. You'd need at least 25% down, not 20%.
- Leaves under a month of buffer. One bad month and you're borrowing.
The numbers
| Down payment20% upfront | ₹16.0 L |
| Monthly EMI19% of take-home · 20 years at 9% | ₹55,541 |
| Interest to the bankOver the full tenure | ₹69.3 L |
| Running costsUpkeep, insurance, dues | ₹6,667/mo |
| Emergency buffer afterDown from 6.0 mo | 0.0 mo |
| Cost by age 60Net worth you give up | ₹11.11 Cr |
At ₹3.0 L a month you would end up with ₹79.48 Cr by 60 with this house, against ₹90.59 Cr without it.
What this breaks
- RBI loan-to-value cap
At this price a lender can fund only 75%. You'd need at least 25% down, not 20%.
RBI norms: lenders may fund at most 90% up to ₹30L, 80% to ₹75L, 75% above
- Three to six months of buffer
Leaves under a month of buffer. One bad month and you're borrowing.
Bogleheads and Dave Ramsey's Baby Steps 1 and 3
Your numbers are not these numbers
This page assumes a great deal about your expenses, savings and existing loans. Enter your own and get the answer for your actual situation.
Run your own numbersWhat this page assumed
You told us one number. Everything else had to be assumed, so here is exactly what was taken for granted:
- Monthly expenses set to 45% of take-home
- Six months of expenses held as an emergency buffer
- One year of take-home already invested
- No existing loan EMIs, and age 32
The same house on a different salary
₹60,000/mo₹75,000/mo₹90,000/mo₹1.0 L/mo₹1.2 L/mo₹1.5 L/mo₹2.0 L/mo₹2.5 L/mo₹4.0 L/mo₹5.0 L/mo₹6.0 L/mo₹8.0 L/mo