Mortgage Affordability Calculator
Worked example (the default inputs above): €60,000 income, €50,000 deposit, 4% rate, 25 years, payment capped at 35% of monthly income (€1,750) → maximum loan about €331,542 → affordable price about €381,542.
Key fact: Lenders do not all use the same rule: some cap the payment at 30–35% of income, others use income multiples or stress-test the rate 2 points higher — the real answer varies by country and lender.
What this calculator does
This calculator estimates the home price an expat household could afford from income, deposit, mortgage rate and term. It caps the monthly payment at a share of monthly income you choose, works backwards to the largest loan that payment supports, and adds your deposit to give an affordable price.
How to use it
- Enter your gross annual household income.
- Enter your deposit saved — money for the purchase itself, not the buying costs (see the buying-costs calculator).
- Enter the mortgage rate and term, and the maximum payment share you are comfortable with, then read your affordable price instantly.
→ House buying costs calculator
The formula
Monthly payment cap = (annual income ÷ 12) × payment share. Maximum loan = payment × (1 − (1+r)−n) ÷ r, where r is the monthly rate and n is the number of payments. Affordable price = maximum loan + deposit. Example: €60,000 income → €5,000 a month; 35% cap → €1,750 payment; at 4% over 25 years (300 payments) that supports a loan of about €331,542; plus €50,000 deposit = €381,542.
→ Business loan EMI calculator
Worked example with real numbers
A couple in Porto earn €60,000 gross between them and have €50,000 saved. Capping the payment at 35% of monthly income gives €1,750 a month. At 4% over 25 years, €1,750 a month supports a loan of about €331,450, so with their deposit they could afford a home up to about €381,450 — before buying costs, which are extra. At 5% instead of 4%, the same payment supports only about €299,355 of loan, and the affordable price falls to about €349,355. That is why a 1-point rate move matters more than most buyers expect, and why locking a rate early can be worth more than haggling over the price.
Reference table
Affordable price at different rates (€60,000 income, €50,000 deposit, 25 years, 35% payment cap — illustrative figures):
| Rate | Maximum loan | Affordable price |
|---|---|---|
| 3% | €369,034 | €419,034 |
| 4% | €331,542 | €381,542 |
| 5% | €299,355 | €349,355 |
| 6% | €271,612 | €321,612 |
→ House buying costs calculator
Sources and disclaimer
Method: the standard annuity formula plus a payment-share affordability rule. This is an estimate, not a lending decision: real lenders apply their own affordability tests, stress rates, loan-to-value caps, residence and visa rules, and country-specific costs (for example, Dutch NHG rules, German Eigenkapital expectations, French apport personnel norms). Buying costs (tax, notary, registration) are NOT included in the price above — use the house-buying-costs calculator for those, and keep them separate from your deposit.
Estimate only — not tax or financial advice. This tool estimates only. It is not tax, legal or financial advice and does not determine your actual tax, loan or lender decision — check your national tax authority, bank or a qualified adviser for your situation. Always verify current figures with the official source or a qualified adviser before making decisions.
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