Budget Calculator: How Much Property Can You Afford in Germany?
Find out how much house or apartment you can afford — based on your income, equity and current interest rates. Free, instant and up to date for 2026.
Last updated: February 2026
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Tip: at least the closing costs (~10–15%) should be covered by equity.
Financing
≈ 29 years until full repayment
Enter your net household income to calculate your maximum purchase price instantly.
How much house can I afford? How to find out
The question “How much property can I afford?” comes at the start of every buying decision. The answer depends on three factors: your income, your equity and the current financing terms.
The budget calculator works backwards: from what you can afford to pay each month, it calculates the maximum purchase price you can afford. The result already accounts for the closing costs (Kaufnebenkosten) that arise with every property purchase in Germany. These costs significantly reduce your available budget.
Important: The result is a rough guide. The final financing approval depends on your creditworthiness, the property value and the bank. Use the calculator to prepare for your meeting with the bank. With a clear idea of your budget, you can negotiate more effectively.
The 35% rule: how banks calculate your budget
The most important rule of thumb in property financing: the monthly loan payment should not exceed 35% of your net household income. At higher incomes (from €5,000) some banks accept up to 40%.
Why exactly 35%? Banks want to make sure you can still service your payment even with unforeseen expenses (a car repair, illness, a job change). Above 40%, the risk of default rises significantly, and so do the interest rates.
| Net household income | Max. payment (35%) | Max. purchase price* |
|---|---|---|
| €2,500 | €875 | ~€160,000 |
| €3,000 | €1,050 | ~€190,000 |
| €3,500 | €1,225 | ~€225,000 |
| €4,000 | €1,400 | ~€255,000 |
| €4,500 | €1,575 | ~€290,000 |
| €5,000 | €1,750 | ~€320,000 |
| €6,000 | €2,100 | ~€385,000 |
| €8,000 | €2,800 | ~€510,000 |
*At 3.5% interest, 2% repayment, €50,000 equity, 10% closing costs. Use the calculator above to run the numbers with your individual values.
Equity: how much do you really need?
Rule of thumb: at least the closing costs (7–15% of the purchase price) should be covered by equity. Ideally, it's 20% of the purchase price + closing costs.
What counts as equity?
- •Savings and instant-access deposits (100%)
- •Building-savings contract (Bausparvertrag): balance (100%)
- •Securities portfolio (70–80% of value, due to market risk)
- •Surrender value of a life insurance policy (100%)
- •Sweat equity (Muskelhypothek, max. 10–15% of construction costs)
- •Gifts and advances on inheritance (100%)
- •Private loans from family (if documented)
Important: always keep an emergency buffer of 3–6 months' salary! It should not go into your equity.
More equity = better interest rates: the more equity you contribute, the lower the interest premium. With more than a 20% equity share (relative to the purchase price), you get the best terms.
Closing costs: the hidden budget killer
On top of the purchase price come closing costs that, depending on the federal state, amount to between 7% and 15% of the purchase price. These costs create no asset value. They are lost at the point of purchase.
Property transfer tax (Grunderwerbsteuer): 3.5–6.5% (depending on the federal state)
Notary fees: ~1.5%
Land registry costs: ~0.5%
Agent commission (buyer's share): 0–3.57%
Impact on the budget: On a €400,000 purchase price with 11% closing costs = €44,000 extra. That means: of €80,000 in equity, only €36,000 is left for the actual purchase price.
Calculate your exact closing costs with our closing costs calculator →Interest rate and repayment: how they shape your budget
Interest rate: the price of money
Currently (2026), interest rates for a 10-year fixed-interest period are around 3.0–4.0%. Every half a percent more or less changes the maximum purchase price by around 8–10%.
Example: at a €1,500 monthly payment and 2% repayment, a 3.0% rate gives a loan of €360,000, while at 4.0% it is only €300,000. That is a difference of €60,000.
Repayment rate: speed vs. budget
Higher repayment = debt-free sooner, but a lower maximum purchase price. At a 2% repayment rate and 3.5% interest, it takes about 28 years to repay in full. At 3% repayment, only about 22 years, but the loan drops by ~€50,000.
| Interest rate | Repayment | Max. loan* | Repayment period |
|---|---|---|---|
| 3.0% | 2% | €360,000 | ~28 years |
| 3.5% | 2% | €327,000 | ~28 years |
| 4.0% | 2% | €300,000 | ~27 years |
| 3.5% | 3% | €277,000 | ~22 years |
| 3.5% | 1% | €400,000 | ~46 years |
*At a €1,500 monthly payment
Rule of thumb: “The loan should be fully repaid by retirement (age 67) at the latest.”
Plan your financing in detail with the repayment calculator (Tilgungsrechner) →Buying without equity: is it possible?
Yes, but: a 100% financing (purchase price fully financed, closing costs paid from equity) is possible at some banks. A 110% financing (closing costs also financed) is rare and expensive.
Drawbacks:
- • Higher interest rates (+0.5–1.0% compared to 20% equity)
- • Higher monthly payment
- • Fewer banks offer it
- • Higher risk in case of a drop in value (remaining debt > property value possible)
When it can still make sense: a very high income, secure employment, low purchase prices in the region, or when the rent would already be similar to the loan payment.
5 tips to afford more property
- Build up equity. Every extra euro of equity raises the maximum purchase price AND improves the interest terms. Combine a savings plan with a building-savings contract.
- Minimise closing costs. Buy without an agent (saves up to 3.57%), and choose a federal state with lower transfer tax (Bayern: 3.5%).
- Pay off existing loans. Repay a car loan, consumer loan or student loan beforehand. That directly increases your monthly budget.
- Increase your income or add a second one. A pay rise, side income, or bringing in a partner with their own income. Even €500 more net per month raises the maximum purchase price by around €90,000.
- Compromise on location. Secondary locations and the outskirts of large cities often offer 30–50% lower prices per square metre with good infrastructure.
Budget calculator vs. bank meeting: what counts?
The budget calculator gives you a solid starting point, but the final financing approval comes from the bank. Banks additionally check:
- •SCHUFA score and creditworthiness
- •Profession and employment status (civil servants vs. self-employed)
- •Type and location of the property (mortgage lending value)
- •Existing assets and liabilities
- •Standard living-cost allowance (not just a percentage rule, but absolute flat amounts per person)
Recommendation: use the calculator to prepare for your meeting with the bank. With a clear idea of your budget, you can negotiate more effectively and spare yourself disappointment.
Frequently asked questions about the budget calculator
It depends on three factors: your net household income, your available equity and the current financing terms (interest rate and repayment rate). As a rule of thumb: the monthly loan payment should not exceed 35% of your net income. At €3,500 net, €50,000 equity and current rates of around 3.5%, the maximum purchase price is roughly €225,000. Use our calculator above to run the numbers with your individual values.
At a minimum, the closing costs (7–15% of the purchase price) should be covered by equity. Ideal is 20% of the purchase price plus the full closing costs, i.e. about 27–35% of the purchase price as equity. On a €300,000 purchase price that would ideally be €80,000–105,000. Less is possible but leads to higher interest rates.
The 35% rule states that the monthly loan payment should not exceed 35% of net household income. At a net income of €4,000 that would be a maximum payment of €1,400 per month. This rule ensures there is enough room for living costs, reserves and unforeseen expenses. At higher incomes, some banks accept up to 40%.
In three steps: (1) determine the maximum monthly payment = net income × 35%. (2) calculate the maximum loan = (monthly payment × 12) ÷ (interest rate + repayment rate). (3) derive the maximum purchase price = (loan + equity) ÷ (1 + closing-cost rate). Example: at a €1,400 payment, 3.5% interest and 2% repayment, the loan comes to about €305,000. With €60,000 equity and 10% closing costs: a purchase price of about €332,000.
Yes, a 100% financing is possible at some banks. The drawbacks: higher interest rates (about +0.5–1.0%), a higher monthly payment, fewer banks to choose from and higher risk in case of a drop in value. Rare but possible is also a 110% financing, where the closing costs are financed too. That usually requires a very secure, high income.
As a rough guide: at 3.5% interest and 2% repayment, every euro of monthly payment corresponds to about €218 of loan. At €3,500 net and a 35% housing-cost ratio (= €1,225 payment), the maximum loan comes to about €267,000. Adding equity and subtracting the closing costs gives the maximum purchase price.
Banks accept: savings and instant-access deposits, building-savings balances, securities portfolios (70–80% of value), the surrender value of life insurance policies, gifts, advances on inheritance and documented private loans. Sweat equity (Muskelhypothek) is recognised at a maximum of 10–15% of the construction costs. Not accepted: furniture, cars, cryptocurrencies (at most banks).
Most banks recommend at least a 2% initial repayment rate. The rule of thumb: the loan should be fully repaid by retirement (age 67) at the latest. At 3.5% interest and 2% repayment, full repayment takes about 28 years; at 3% repayment, about 22 years. A higher repayment rate means debt-free sooner, but a lower maximum purchase price. The optimal repayment rate depends on your age and your risk tolerance.
Closing costs are one-off costs that arise on top of the purchase price when buying property: property transfer tax (3.5–6.5% depending on the federal state), notary fees (~1.5%), land registry costs (~0.5%) and optionally agent commission (up to 3.57% buyer's share). In total, closing costs amount to 7–15% of the purchase price. They create no lasting value and should ideally be paid out of equity.
At €3,000 net household income, a 35% housing-cost ratio and current terms (3.5% interest, 2% repayment): maximum payment = €1,050, maximum loan = about €229,000. With €40,000 equity and 10% closing costs, this gives a maximum purchase price of about €245,000. With €80,000 equity, the purchase price rises to about €281,000. Without equity: about €208,000.
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