Borrowing capacity
How much can you borrow for a home based on your income?
How it works
Maximum payment = income × debt ratio − other loans. The loan amount follows from the payment formula. Banks often aim for about a third of income.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Net monthly income (household)3500
- Other loan payments per month0
- Maximum debt ratio (%)33
- Interest rate (%)3.5
- Term (years)25
you get:
- You can borrow about€230,712.27
- Maximum monthly payment€1,155.00
- Total interest cost€115,787.73
Frequently asked questions
How does the “Borrowing capacity” tool work?
Maximum payment = income × debt ratio − other loans. The loan amount follows from the payment formula. Banks often aim for about a third of income.
What do I need to enter?
Just fill in: net monthly income, other loan payments per month, maximum debt ratio, interest rate, term. The result updates as you type.
Can you give an example?
Net monthly income (household): 3500; Other loan payments per month: 0; Maximum debt ratio (%): 33; Interest rate (%): 3.5; Term (years): 25 → You can borrow about: €230,712.27; Maximum monthly payment: €1,155.00.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.