Disclaimer
What this tool is, what it is not, and the limits worth knowing before you act on a score.
Finance Fundamentals is not a financial adviser, and nothing on this site is financial advice. The Affordability Index is an educational calculator. It does arithmetic on numbers you type in — it does not know your circumstances, and it is not a recommendation to buy, not buy, borrow, or invest.
What the Affordability Index actually does
It answers one narrow question: based on the figures you entered, roughly how much of this purchase could you cover without eating into a six-month emergency fund? The formula is published in full on the calculator page — there is no hidden model and no data about you feeding into it beyond what you type.
What it deliberately does not model
Knowing the limits matters more than the score. The Index does not account for:
- Interest or EMIs on the purchase itself. It treats the price as a cash figure. Financing the same purchase changes the real cost substantially.
- Inflation. Your surplus is projected flat across the horizon.
- Investment returns on the savings you already hold.
- Tax of any kind — income is taken as the take-home figure you enter.
- Income volatility, job loss, illness, or any other shock. The six-month emergency-fund floor is the only cushion it reserves.
- Anything you did not enter — dependants, insurance, existing commitments, or planned expenses beyond the ones you listed.
The thresholds are conventions, not laws
The bands — a score of 2 or above reading as "affordable" — and the health checks (a six-month emergency fund, debt payments under 30% of income, essentials under 60%, savings of at least 20%) are widely used personal-finance rules of thumb. They are reasonable defaults. They are not regulatory standards, and they are not right for everyone.
The output is only as good as the input
The calculator cannot tell whether the numbers you entered are accurate, complete, or realistic. Understating your expenses produces a flattering score that means nothing.
Before acting on a score
For decisions that matter — a home, a vehicle, a loan, an investment — speak to a SEBI-registered investment adviser or a qualified financial professional who can take your full circumstances into account. Finance Fundamentals is not registered with SEBI or any financial regulator, and does not provide regulated advice.
No liability
You use the calculators and act on their output at your own risk. To the fullest extent permitted by law, the operator accepts no liability for any loss arising from decisions made in reliance on this site. See the Terms of Use for the full position.