Borrowing capacity simulator
Estimate the maximum monthly payment and the borrowable amount based on your income, expenses and the 35% debt-to-income ratio recommended by the HCSF.
Your settings
Results update with each entry.
Net income before income tax.
Total monthly payments you are already making (auto, consumer loans, mortgage).
35% including insurance: recommendation from the HCSF (French High Council for Financial Stability).
Annual rate applied to the borrowed capital.
- Borrowing capacity over 25 years
- €269,088
- Debt-to-income ratio used: 35% of income, insurance included.
- Maximum monthly payment
- €1,400
- Including €67 of insurance
- Interest cost
- €130,731
- Disposable income
- €2,600
- Income minus all loan payments
Borrowing capacity by duration
Same income, same rate and same insurance; only the term changes.
Duration comparison
| Duration | Maximum monthly payment | Borrowing capacity | Interest cost |
|---|---|---|---|
| 10 years | €1,400 | €138,726 | €25,112 |
| 15 years | €1,400 | €190,481 | €52,947 |
| 20 years | €1,400 | €233,398 | €88,598 |
| 25 years (your choice) | €1,400 | €269,088 | €130,731 |
How this calculation is made
The maximum monthly payment on the new loan, insurance included, is the share of income allowed by the debt-to-income ratio, minus existing loan payments:
Maximum monthly payment = net income × debt-to-income ratio − existing loan payments
The borrowable amount is the principal for which the loan payment, plus the insurance calculated on that principal, equals this maximum payment. For a monthly rate i, n monthly payments and an annual insurance rate a:
Capital = maximum monthly payment / (i / (1 − (1 + i)^−n) + a / 12)
- The default debt-to-income ratio of 35% matches the recommendation of the HCSF (French High Council for Financial Stability), insurance included. The HCSF also recommends a maximum term of 25 years.
- Banks also consider other factors: down payment, income stability, residual income, and savings. The amount granted may therefore differ.
- Notary, guarantee and file fees are not included.
The results are simulations based on the stated assumptions. They do not predict future results and do not take your personal situation into account. The information published on TimeLinq is for informational purposes only and does not constitute investment advice. Investing involves a risk of capital loss.