Published 19 October 2026 · Updated 24 October 2026
A mortgage affordability calculator tells you how much a bank is likely to lend you — before you fall in love with a house. On a household income of €70,000 with €40,000 deposit and €300 of monthly debts, most European lenders would approve roughly €250,000–€290,000 of borrowing, giving a property budget of about €290,000–€330,000. Enter your own numbers below.
The calculator runs the two checks European lenders actually use. First, the income-multiple check: your maximum loan is capped at a multiple of your gross household income — 3.5× (conservative), 4.5× (standard) and 5× (stretch) — then reduced by an allowance for your existing debts (annual debts divided by the multiple). Second, the debt-to-income check: the standard-scenario monthly mortgage payment plus your monthly debts should stay at or below roughly 35% of your monthly gross income. The calculator flags the result if this limit is breached.
Monthly repayments use the standard amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of payments. The property budget is simply the maximum loan plus your deposit. All of this is computed in your browser — your financial details never leave your device.
Lukas and Sofia in Amsterdam earn €55,000 and €25,000 gross (€80,000 combined). They have €400/month in car and loan payments and a €40,000 deposit, and expect a 4% rate over 25 years:
The standard scenario is the realistic anchor: a €359,000 loan and a property budget just under €399,000. But watch the stretch scenario — clearing the €400/month debts first would push every scenario up by roughly €40,000–€50,000, which is why lenders care so much about existing commitments.
A common lender rule in Europe is 4 to 4.5 times your gross annual household income, minus an adjustment for existing debts. On a combined gross income of €70,000, that suggests roughly €280,000–€315,000 of borrowing. Lenders then apply a second check — total housing costs plus debts should stay below about 30–35% of net income — and offer the lower of the two results.
Most European lenders cap mortgages at roughly 4 to 4.5 times gross annual income, with conservative banks stopping at 3.5× and some stretching to 5× for very strong applicants. Ireland formally caps at 4× income for most buyers. Germany uses stricter debt-service ratios rather than a headline multiple. The exact multiple varies by country, lender and your credit profile.
It varies by country: many lenders require 10–20% of the property price, while the Netherlands permits up to 100% financing in some cases and Ireland asks first-time buyers for 10%. Beyond the bank's minimum, a bigger deposit lowers your loan-to-value ratio, which usually unlocks better interest rates. Try the calculator with 10%, 20% and 30% deposits to see how the property budget changes.
A stress test checks whether you could still pay the mortgage if interest rates rose — typically lenders add around 2–3 percentage points to your quoted rate and re-run the affordability maths. If the stressed monthly payment still fits within your income minus expenses, your borrowing looks affordable. It protects both you and the lender against rate shocks.
Yes — lenders subtract your existing monthly debt payments (car loans, credit cards, student loans) from your available income before calculating affordability. €400 a month of debt can reduce your maximum mortgage by roughly €40,000–€50,000. Clearing small debts before applying is one of the fastest ways to raise your borrowing capacity.
A longer term (30–35 years instead of 20) shrinks the monthly payment, which makes the same loan amount easier to afford under the debt-to-income check. But you pay far more total interest: borrowing €250,000 at 4% over 35 years costs about €85,000 more interest than over 20 years. Shorter terms are cheaper overall but demand a higher monthly budget.
No — this is an estimate using standard income-multiple and debt-to-income rules. Real lender decisions also weigh your credit history, employment stability, the specific property, age and their own internal policy. Use the result to set a realistic property budget before viewing homes, then get a mortgage-in-principle from a lender or broker for a concrete figure.
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