What is the EMI-to-income ratio?
It is the share of your monthly take-home income that goes to repaying debt. Lenders call a version of it FOIR — fixed obligations to income ratio — and use it to decide how much more you can borrow.
There is no single official limit, but many lenders become cautious once fixed obligations cross roughly 40–50% of income. Below about 30% is generally considered comfortable.
What to do if your ratio is high
Don’t take a new loan to pay old EMIs — it usually adds interest and deepens the problem. List every loan with its interest rate and outstanding amount, and talk to your lenders early about restructuring or a longer tenure.
If you have already missed payments and genuinely cannot repay in full, a negotiated settlement may be an option, with real trade-offs for your credit score. Our free consultation can help you compare the routes.
Questions about this tool
What is a good EMI-to-income ratio?
Below about 30% is generally comfortable. Between 30% and 50% leaves little room for emergencies. Above 50% is a sign of serious debt stress.
Should I include credit card payments?
Yes. Include at least the minimum due on every card, because missing it hurts your credit score just like a missed EMI.