# How much will I bring home calculator

## Budget calculator - how much property can I afford?

### Real estate calculator: now determine the maximum loan amount for your mortgage lending

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In order to pay off a building loan as planned over many years or decades, a realistic calculation before taking out the building loan is extremely important. Before you start planning a home loan, you should therefore work out exactly how much house you can actually afford. No arithmetic helps. Be honest with yourself and calculate as realistically as possible what budget you have available for the repayment of a building loan per month. How high the loan amount may be depends on factors such as

• the rate,
• the interest rate,
• the funding period
• and the existing equity.

### Step by step: This is how the budget calculator calculates the maximum loan amount

In order to calculate the maximum possible loan amount, the budget calculator only needs a few important key figures such as your current income, debts or equity. You can find out how the real estate calculator calculates your loan amount below:

Step 1: How many people live in the household?

In order to calculate the highest possible loan amount for your real estate financing, the number of people living in the household is important. On the basis of this, the calculator will later calculate how much money will be needed to live in total. The calculator estimates the main breadwinner to be a flat rate of € 750 per month as the cost of living. The non-working partner and each child will be charged € 200. The cost of living is deducted from household income and cannot be used for financing.

Step 2: Compare income and expenses

In order to be able to determine the total monthly income, you must enter the monthly net income and other income from pensions or secondary employment in the calculator. Christmas and vacation bonuses should not be included in net income. In addition to the regular income, the real estate calculator naturally also needs information on your monthly expenses. Here, not only the basic rent, but also your monthly savings rate is queried. These include, for example, savings in shares, funds or building society savings. The budget calculator calculates an alternative monthly rate for your maximum loan amount based on the basic rent and your previous savings. Depending on your savings behavior, this can be significantly higher than a rate that is based solely on your income.

### Step 3: Do you have equity?

In order to determine the maximum loan amount as precisely as possible, our financing calculator not only takes into account the income and savings, but also existing equity, including building society savings. The following applies: The higher the proportion of equity that you bring into the construction financing, the more favorable the conditions for your real estate loan will be in the end.

### Step 4: Total Mortgage Costs vs. Rent Payments

With a home loan, it often takes several decades before you are debt-free. So that you have a comparison of how much you have saved in rent during this period, the real estate calculator calculates the exact sum of the rental expenses for the entire loan term. All you have to do is state the annual rent increase you expect. At the end of the day, you can then compare the rental payments theoretically made during the financing period with the total costs for the property. Such a comparison can quickly reveal whether it is worth buying a house instead of paying decades of rent. In addition, the calculator provides an exact course of rent development in annual steps, so that you can understand how the monthly rent will develop in the coming years.

Step 5: Select the monthly rate for calculation

Once you have provided all the necessary information, the budget calculator will use your data to provide you with two monthly installments to choose from for calculating the maximum possible loan amount:

• The first installment is calculated simply from 35% of the family's net income. The basis for this calculation is the rule of thumb that the monthly burden for mortgage lending should not exceed 35 to 40% of income.
• The second installment consists of the basic rent and the monthly savings rate.

Now choose which of the two installments and which loan interest should be used for the calculation. Based on the assumption that the calculation is carried out over the entire financing period with the same interest rate and the same monthly rate, the result of the home equity calculator shows you the maximum possible loan amount for you. Now the real estate calculator adds the equity you have contributed to the construction financing and deducts the additional costs (notary, land register, real estate transfer tax) amounting to 7.5% of the purchase price. The result is the maximum purchase price for your property. This breakdown enables you to understand exactly what amount has to be financed through a home loan and how much house you can really afford.

### Sample calculation for the budget calculator

The example calculation illustrates the calculation process of the budget calculator. A family of three would like to know: How much house can I afford? The two adults together earn € 3,900 net. With an existing equity of € 50,000, the buyer opts for a monthly installment for the home financing of € 1,000. Your goal is to have paid off the home loan after 30 years. In this constellation, a purchase price of € 288,577 can be considered as a rough guide.

### What house I can afford?

amount
monthly net income3.900 €
current monthly rent900 €
monthly savings rate100 €
existing equity50.000 €
How much monthly funding can I afford?1.000 €
What is the maximum loan amount?260.220 €
What is the loan amount plus equity?310.220 €
How much additional purchase costs (7.5%) do I have to deduct?21.643 €
What house I can afford? The purchase price of the property288.577 €

### You need to pay attention to this when calculating the loan amount

First and foremost, the budget calculator gives you the opportunity to get an initial overview of which financial resources are available to you after offsetting the income with the expenditure for financing. However, the maximum property price calculated from this can only be used as a guide. Whether the bank will approve building finance for you in the calculated amount depends on other factors such as your creditworthiness or the equity that you have contributed to the financing.

### Real estate calculator: so much house you can afford!

Did you use our real estate calculator to get an overview of how much house you can afford? Then use our loan calculator and compare two loan offers. Or use our construction money comparison and find out which construction money providers offer construction financing in this amount and at a low interest rate.

Without sufficient equity, financing a property is much more expensive and, above all, risky. We therefore recommend an equity share of 20 to 30% of the total costs. This does not necessarily have to be savings. Make use of other assets that can be made liquid in the short term. Gold holdings, antiques, stock funds or coins can also be counted towards equity.