Debt Ratio Calculator

Discover your borrowing capacity and the maximum mortgage amount you could apply for based on your current income and debts.

Debt Ratio Calculator
Calculate your borrowing capacity and the maximum mortgage amount you could apply for

Monthly Income

Total monthly income:0.00 €

Monthly Expenses and Debts

Total monthly debts:0.00 €

How to interpret the results?

Less than 35%

Excellent payment capacity. Banks consider you a low-risk profile and you can access better conditions.

Between 35% and 45%

Acceptable but tight. Some banks may require additional guarantees or a guarantor to approve the operation.

More than 45%

High risk of default. It will be very difficult to obtain financing. Consider reducing debts before applying for a mortgage.

Tips to improve your ratio

  • •Cancel small debts: Eliminate personal loans or credit cards before applying for the mortgage.
  • •Add a co-applicant: Your partner's or family member's income can significantly improve the ratio.
  • •Increase the down payment: Financing a lower percentage reduces the monthly payment and improves the ratio.
  • •Extend the term: A longer term reduces the payment (although it increases total interest).

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Preguntas Frecuentes

The debt ratio is the percentage of your monthly income that you allocate to debt payments. Banks use it to assess your payment capacity. It's calculated by dividing your monthly debts by your net monthly income.
Banks typically accept a maximum ratio of 35-40%. Above 35%, they consider there's a risk of default. A ratio below 30% is excellent and facilitates mortgage approval with better conditions.
Banks consider demonstrable net income: payslips, pensions, rental income, self-employed income (average of recent years). They don't usually count variable or unreported income.
All monthly payments are included: current mortgage, personal loans, car loans, credit cards (minimum payment), current rent, and any other fixed monthly payment obligation.
You can improve your ratio by reducing debts (canceling loans, paying off cards), increasing demonstrable income, or adding a co-applicant with income. It also helps to extend the mortgage term to reduce the payment.