Borrowing capacity: how much can I borrow?
How to use this calculator?
1. Enter the household's net monthly income and existing loan repayments
2. Keep a 35% debt-to-income ratio or adjust it to your bank's rule
3. Enter the term, the interest rate and the insurance rate offered by the bank
4. Read the amount you can borrow and the monthly payment, and compare terms in the table
Quick answer
How much can I borrow with €4,000 a month?
With €4,000 net per month, no other loans and a 35% debt-to-income ratio, the maximum payment is 4,000 × 0.35 = €1,400. Over 25 years at 3.3% with insurance at 0.30% a year, that lets you borrow about €271,900. The term changes the result a lot:
| Term (€1,400/month, 3.3%, insurance 0.30%) | Borrowing capacity |
|---|---|
| 15 years | ≈ €191,800 |
| 20 years | ≈ €235,400 |
| 25 years | ≈ €271,900 |
About the Borrowing Capacity
What is it?
The borrowing capacity calculator estimates how much you can borrow from your net income, existing loans and maximum debt-to-income ratio. It also gives the maximum monthly payment, the total cost of credit and compares several loan terms.
Why use it?
Knowing your borrowing capacity before viewing properties helps you search within the right budget and go to the bank with a credible plan. The 35% default is the French rule; lenders elsewhere use their own affordability limits and always decide case by case.
How does it work?
Maximum payment = income × ratio − existing loans. The capital C satisfies: payment = C × r ÷ (1 − (1 + r)^−n) + C × insurance ÷ 12, where r is the monthly rate and n the number of months. Insurance is charged on the initial capital. The total cost is the sum of all payments minus the capital.
Usage tips
- Each lender sets its own limit: adjust the ratio to the one your bank applies
- A longer term raises the amount you can borrow, but also the total cost
- A deposit of at least 10% usually covers buying costs and reassures the lender
- Compare loan insurance offers: a few tenths of a point make a visible difference
- Then use the mortgage calculator to see the full amortization schedule
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