FOIR Calculator – Calculate FOIR Online Instantly

FOIR Calculator – Calculate Your Loan Eligibility Ratio Online

Use Pocketly's FOIR Calculator to calculate your Fixed Obligations to Income Ratio and understand how much of your monthly income is already being used for existing financial obligations.

Enter your monthly income and applicable fixed monthly obligations to calculate your FOIR percentage instantly.

Quick answer: FOIR stands for Fixed Obligations to Income Ratio. It measures the percentage of a person's monthly income that goes toward applicable fixed financial obligations. Lenders may consider FOIR along with credit history, income, employment profile and other underwriting factors when assessing a loan application.

What Is FOIR?

FOIR stands for Fixed Obligations to Income Ratio.

It is a financial ratio used to compare a borrower's applicable monthly fixed obligations with monthly income.

The basic FOIR calculation can be expressed as:

FOIR = (Total Monthly Fixed Obligations ÷ Monthly Income) × 100

For example, if your monthly income is ₹60,000 and applicable fixed obligations are ₹18,000:

FOIR = (₹18,000 ÷ ₹60,000) × 100

FOIR = 30%

This means 30% of the monthly income used in the calculation is allocated to those fixed obligations.

How to Use the FOIR Calculator

The Pocketly FOIR calculator requires only a few inputs.

1. Enter Your Monthly Income

Enter the monthly income you want to use for the calculation.

For example:

₹75,000

2. Enter Existing EMIs

Add applicable monthly repayments on existing loans.

For example:

₹15,000

3. Enter Other Applicable Fixed Obligations

Enter any other fixed financial obligations that should be included in your calculation.

For example:

₹5,000

4. Calculate FOIR

Click Calculate FOIR.

The calculator will display your estimated FOIR percentage.

FOIR Calculation Formula

The standard FOIR calculation formula is:

FOIR = (Fixed Monthly Obligations ÷ Monthly Income) × 100

Where:

If:

• Monthly income = ₹50,000

• Fixed obligations = ₹20,000

Then:

FOIR = (20,000 ÷ 50,000) × 100

FOIR = 40%

The calculation itself is straightforward, but lenders may differ in what they count as income and fixed obligations.

How to Calculate FOIR

If you want to know how to calculate FOIR manually, follow these steps.

Step 1: Determine Monthly Income

Assume:

Monthly income = ₹80,000

Step 2: Add Applicable Fixed Obligations

Suppose you have:

• Personal loan EMI: ₹8,000

• Car loan EMI: ₹12,000

• Other applicable fixed obligation: ₹4,000

Total:

₹8,000 + ₹12,000 + ₹4,000 = ₹24,000

Step 3: Apply the FOIR Formula

FOIR = (₹24,000 ÷ ₹80,000) × 100

Step 4: Calculate the Result

FOIR = 30%

In this example, the applicable fixed obligations represent 30% of the monthly income entered.

FOIR Calculation Example

Here is another example.

Suppose a person earns ₹1 lakh per month and has the following obligations:

Using the formula:

FOIR = (₹35,000 ÷ ₹1,00,000) × 100

FOIR = 35%

The person's FOIR based on these inputs is 35%.

What Does FOIR Stand For?

FOIR stands for Fixed Obligations to Income Ratio.

The term is commonly used in lending and credit assessment to express the relationship between a person's income and existing fixed obligations.

It can help answer a basic question:

How much of the income considered by a lender is already allocated to existing fixed financial commitments?

A higher percentage means a larger portion of income is already allocated to the obligations included in the calculation.

Why Is FOIR Important for Loan Applications?

Lenders need to assess whether an applicant can reasonably manage additional repayments.

FOIR can be one part of that assessment.

For example, consider two applicants who each earn ₹60,000 per month.

Although both applicants have the same income, their existing financial obligations are different.

FOIR gives the lender one way to quantify that difference.

However, FOIR alone does not determine loan approval.

What Is a Good FOIR?

There is no single FOIR percentage that guarantees approval across all lenders or loan products.

Lenders can set their own underwriting criteria based on factors such as:

• Applicant income

• Employment type

• Existing debts

• Loan amount

• Loan tenure

• Credit history

• Credit score

• Age

• Income stability

• Lender-specific credit policies

You may see general FOIR ranges discussed online, but these should not be treated as universal approval thresholds.

Use the FOIR calculator to understand your ratio, then check the specific lender's eligibility criteria.

What Is Included in FOIR Calculation?

The exact treatment can vary by lender, but a FOIR calculation may consider applicable recurring financial obligations such as:

• Existing personal loan EMIs

• Home loan EMIs

• Car loan EMIs

• Education loan EMIs

• Consumer loan repayments

• Credit-related obligations considered by the lender

• Other fixed obligations under the lender's methodology

Every regular household expense is not necessarily treated as a fixed obligation for lender FOIR calculations.

This is why the result from an online calculator should be considered an estimate.

What Income Is Used for FOIR?

The income considered for FOIR depends on the lender's underwriting methodology.

For a salaried applicant, a lender may evaluate eligible monthly income based on salary documentation.

For a self-employed applicant, income assessment can involve business or professional income and supporting financial records.

The income entered into a general online FOIR calculator should therefore reflect the income figure relevant to the calculation you are trying to model.

For an actual loan application, the lender determines the income it will recognise.

How Existing EMIs Affect FOIR

Existing loan EMIs can directly affect your FOIR.

For example, assume your monthly income is ₹50,000.

Scenario 1

Existing EMI = ₹5,000

FOIR = 10%

Scenario 2

Existing EMI = ₹15,000

FOIR = 30%

Scenario 3

Existing EMI = ₹25,000

FOIR = 50%

As applicable fixed obligations increase relative to income, FOIR increases.

FOIR vs Debt-to-Income Ratio

FOIR and Debt-to-Income Ratio (DTI) are related concepts, but terminology and calculation practices can differ.

Do not assume that every lender calculates FOIR and DTI identically.

FOIR and Loan Eligibility

A FOIR calculator can help you understand one factor that may be considered during loan assessment, but it is not a complete loan eligibility calculator.

Loan eligibility can also depend on:

1. Credit profile

2. Income

3. Employment or business profile

4. Existing debt

5. Requested loan amount

6. Repayment tenure

7. Age and lender requirements

8. Internal underwriting policies

A low FOIR does not guarantee approval, while a particular FOIR result does not automatically mean rejection.

The lender makes the final credit decision.

FOIR and Credit Score: Are They the Same?

No.

FOIR measures the relationship between applicable fixed obligations and income.

A credit score is based on information in your credit history and credit report.

A lender may consider both during underwriting.

How Can FOIR Change?

Your FOIR changes when the income or fixed obligations used in the calculation change.

For example:

Higher Recognised Income

If income rises while obligations remain unchanged, the calculated FOIR decreases.

Loan Repayment

When an existing loan is fully repaid and its EMI is no longer an applicable obligation, FOIR can decrease.

Additional Borrowing

Taking on another repayment obligation can increase FOIR.

The correct calculation should always use current and accurate information.

FOIR Calculator for Salaried Individuals

A salaried applicant can use the calculator to compare monthly income with existing applicable obligations.

Example:

Monthly income: ₹70,000
Existing EMIs: ₹21,000

FOIR = (₹21,000 ÷ ₹70,000) × 100 = 30%

For an actual loan application, the lender may determine eligible income based on salary slips, bank statements or other documentation.

FOIR Calculator for Self-Employed Individuals

FOIR can also be relevant when lenders evaluate self-employed borrowers, although income assessment may be more complex.

A lender may review documents such as:

• Income-tax records

• Bank statements

• Business financial statements

• Income stability

• Existing credit obligations

The online FOIR calculation remains a useful estimate, but the lender's recognised income may differ from the amount entered by the user.

FOIR Calculator vs EMI Calculator

These tools answer different questions.

You can use both tools when planning borrowing.

First, use the EMI calculator to estimate the new repayment. Then model how that additional obligation could affect your FOIR.

Example: FOIR Before and After a New EMI

Suppose:

Monthly income: ₹80,000
Existing EMIs: ₹20,000

Current FOIR:

(₹20,000 ÷ ₹80,000) × 100 = 25%

Now assume a proposed loan has an estimated EMI of ₹10,000.

Total obligations after including the proposed EMI:

₹20,000 + ₹10,000 = ₹30,000

Indicative FOIR:

(₹30,000 ÷ ₹80,000) × 100 = 37.5%

This type of calculation can help you understand how an additional EMI changes the ratio.

It does not predict whether a lender will approve the loan.

Why Use Pocketly's FOIR Calculator?

Pocketly's FOIR calculator can help you:

• Calculate FOIR online

• Understand the FOIR formula

• Compare income with fixed obligations

• See how existing EMIs affect your ratio

• Model a proposed additional EMI

• Understand one component of loan affordability

You can change the values and recalculate different scenarios without submitting a loan application.

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Check Your Repayment Before Borrowing With Pocketly

FOIR can provide one view of your existing financial obligations. Before taking another loan, also calculate the proposed EMI and review the complete borrowing cost.

Pocketly currently publishes personal-loan amounts from ₹1,000 to ₹50,000, with repayment periods from 61 days to 9 months. Its published disclosures list interest of 2% to 3% per month, processing fees from 0% to 7.5% plus applicable GST, and an APR range of 30% to 121%. 

Pocketly operates as a technology platform through which RBI-registered NBFC Speel Finance Company Private Limited lends personal loans. Pocketly states that applicable borrowing costs, charges and lending terms are disclosed through its website and application. 

[Explore Pocketly Personal Loans →]

Review the lender's Key Facts Statement and final loan terms before accepting a credit offer.

Frequently Asked Questions

What is FOIR?

FOIR stands for Fixed Obligations to Income Ratio. It measures applicable monthly fixed financial obligations as a percentage of monthly income.

What is a FOIR calculator?

A FOIR calculator estimates your Fixed Obligations to Income Ratio using your monthly income and applicable fixed monthly obligations.

What is the FOIR calculation formula?

The basic formula is:

FOIR = (Total Fixed Monthly Obligations ÷ Monthly Income) × 100

How do I calculate FOIR?

Add the applicable monthly fixed obligations, divide the total by the monthly income used for the calculation, and multiply the result by 100.

What does a 40% FOIR mean?

A 40% FOIR means the fixed obligations included in the calculation equal 40% of the monthly income used for that calculation.

Does FOIR affect loan eligibility?

FOIR may be one of several factors lenders consider when assessing repayment capacity. Actual eligibility also depends on credit profile, income, employment, requested amount and lender-specific underwriting criteria.

Is FOIR the same for every lender?

No. Lenders can differ in the income and obligations they recognise and the FOIR levels they accept under their credit policies.

Does using a FOIR calculator affect my credit score?

No. Using a calculator does not involve a credit enquiry and does not affect your credit score.

Is Pocketly's FOIR Calculator free?

Yes. Pocketly's FOIR Calculator can be used as a free online tool to estimate your Fixed Obligations to Income Ratio.

Disclaimer

The FOIR Calculator provides indicative calculations for informational purposes. Lenders may use different definitions of eligible income, fixed obligations and acceptable FOIR levels. A calculator result does not determine or guarantee loan eligibility, approval, interest rate or loan amount.