How much house can I afford?
Short answer: As a rough guideline, your loan instalment should not exceed around 35% of net household income. At €3,500 net income, that is about €1,225 instalment, which, at 4% interest and 2% repayment, results in a loan of around €245,000. With €40,000 in equity and after deducting 15–20% incidental costs, a realistic house budget of about €220,000 to €260,000 remains. You can calculate your personal range below in the budget calculator.
Many prospective buyers look at houses first and the budget second – it makes more sense to do it the other way round. If you know which monthly instalment is affordable, you can derive the loan amount from it and thus the total budget. It is important that the house price does not equal the total budget: incidental purchase and building costs of typically 15 to 20 percent are deducted beforehand. It is exactly this calculation that the calculator takes off your hands.
Budget calculator: your personal house budget in seconds
Enter your monthly net household income, your equity and your fixed costs and set the interest rate. The calculator shows live the maximum affordable instalment, the possible loan amount, your total budget and – after deducting the incidental costs – how much is actually left for the house.
Budget calculator: how much house can you afford?
Simplified rule of thumb and non-binding guidance – not financial advice. The affordable loan also depends on creditworthiness, term, account management and your individual life situation. Only a personal financing consultation provides binding figures (as of 2026).
What rule of thumb is behind the budget?
The calculation is deliberately kept simple so that you can follow it yourself at any time. In six steps you go from income to a realistic house budget:
- Record net household income realistically: add up all regular net incomes, but no uncertain special payments.
- Deduct fixed costs and existing loans – only the remainder is available for the house instalment.
- Determine the maximum instalment: as a guideline, around 35 percent of net income minus the fixed costs.
- Derive the loan amount: instalment × 12 divided by the interest rate plus 2 percent initial repayment.
- Add equity and form the total budget from it.
- Deduct 15 to 20 percent for incidental building costs – only then do you know your real house budget.
An example: €3,500 net income results in a €1,225 affordable instalment. At 4% interest and 2% repayment (6% together), that corresponds to a loan of around €245,000 (€1,225 × 12 ÷ 0.06). With €40,000 in equity, the total budget is about €285,000. After deducting 15 to 20 percent incidental costs, around €228,000 to €242,000 remains for the house.
Net income and realistic house budget at a glance
The table shows the rule of thumb for common incomes – with the maximum instalment, loan range and realistic house budget. The values assume 4% interest, 2% initial repayment and equity of around 20% of the total budget.
Guideline values based on the 35% rule of thumb – simplified, not financial advice (as of 2026).
| Net household income/month | Max. instalment (35%) | Loan range* | Realistic house budget** |
|---|---|---|---|
| €2,500 | €875 | €175,000 | €155,000 – 186,000 |
| €3,000 | €1,050 | €210,000 | €187,000 – 223,000 |
| €3,500 | €1,225 | €245,000 | €218,000 – 260,000 |
| €4,000 | €1,400 | €280,000 | €249,000 – 298,000 |
| €5,000 | €1,750 | €350,000 | €311,000 – 372,000 |
*Loan range without deduction of fixed costs, at 4% interest and 2% repayment. **House budget after deducting 15–20% incidental building costs, including around 20% equity. For suitable offers per budget, the detailed comparison by income helps.
What role does equity play?
Equity is the second big lever besides income. It lowers the loan amount required and often improves the interest rate, because the bank bears a lower risk. As a guideline: the incidental purchase and building costs – that is, the 15 to 20 percent deducted in the calculator – should ideally be covered entirely from equity. That way the bank finances only the house construction itself, and the monthly instalment stays lower. Every additional euro of equity contributed increases the budget actually available for the house.
Equity includes not only savings and securities, but also building land already owned, building savings balances and, to a limited extent, so-called sweat equity (Muskelhypothek) – that is, your own labour during finishing. It is important not to put an emergency reserve into the house: a financial cushion for repairs, a job change or unexpected expenses should also remain in place after the house is built.
Why the total budget is not the house price
A common planning mistake: the calculated total budget is planned entirely as the house price. In reality, the incidental purchase and building costs are deducted first. These include the real estate transfer tax, notary and land register costs, building permit, surveying, site development and house connections, floor slab or basement, outdoor facilities as well as construction electricity and insurance during the construction phase. In total, these items typically reach 15 to 20 percent – with smaller projects or difficult plots, even more.
That is why the calculator does not state the total budget as the house price, but deducts the incidental costs and shows the range actually available for the house. Calculate the plot additionally and separately by region – prices differ considerably depending on location. A detailed breakdown of your individual costs is provided by the mortgage calculator.
What is the maximum the instalment should be?
The 35 percent limit is a ceiling, not a target. Beside the loan instalment, living costs, maintenance, reserves and the unforeseen must be covered. Families with children or households with further loans should set the limit considerably lower – which is why the calculator deducts your fixed costs separately.
If you have a specific price class in mind, you will find suitable offers under prefabricated house up to €200,000 or prefabricated house up to €250,000. A complete overview is offered by the page prefabricated houses by budget, and you can calculate the exact instalment in the mortgage calculator.
Tools for homebuilders
Once the budget is settled, it is time for implementation. Structure is provided by the house-building checklists. A common thread across all construction phases is provided by the free house-building course. Anyone who wants to cut costs checks the own labour in house building. Rights, obligations and further help are bundled on the page For homebuilders: rights, obligations & tools.
Find houses that match your budget
You now know your realistic house budget – now let us find the matching houses. A few short questions about size, construction stage and region are enough, and we compare with 140 providers and send you suitable offers within your budget for free.
