What is my capecity to borrow?

“How much can I borrow?” is a frequently asked question. How much you can pay off each month depends on your financial situation. You can assume that what you save every month can also pay off monthly for your loan.

Curious how much you can pay exactly? Make an estimate of your repayment capacity yourself based on a few guidelines.

Repayment strength= monthly salary- monthly expenses

How do you calculate your monthly income?

To calculate your repayment capacity for a loan, you need your monthly income.

By monthly income we mean:

  • your wage / work allowance
  • alimony
  • an income from a self-employed activity or additional income
  • the rental of an apartment or house

A few tips:

  • Do your income differ per month? Add up your income for a few months and take the average of it.
  • Are you borrowing with another person? Then you add up your monthly income, but make sure that you do not count income twice. Example: you rent an apartment together, then you can only count this income once.

How do you calculate your monthly expenses?

What are your monthly expenses? We can split them into two broad categories.

Your fixed expenses. Think of:

  • your current installment (eg mortgage) or rent for your home
  • other current installments, such as a car loan or a personal loan

Also take into account your credit cards and budget facility (that too is a credit). Add approximately 7% of your total credit card limits to your expenses.

Your household budget is the other big bite from your income:

How much does it cost to live? That of course varies greatly from family to family. A study * shows that a single person in Belgium needs around 970 euros a month to make ends meet. In addition to food and clothing, these costs also include your rent and the typical monthly invoices. Musclecarfacts customer? Then you can see your monthly expenses in one-two-three in the personal financial management tool from Musclecarfacts Touch.

An overview of your monthly income and expenses at a glance?

Do you already know Musclecarfacts Personal Finance Manager’? This handy application in Musclecarfacts Touch automatically categorizes all your income and expenses.

As a Musclecarfacts customer, you get a clear overview of your monthly income and expenses immediately and without calculating and you know what you have left at the end of the month.

In the Payments dashboard, click on the bar graph at the top.

Read about:

Car loan simulation

Note that borrowing money also costs money.

Remember that you always have to keep a part free for interest. In the various simulation tools from Musclecarfacts you can easily calculate the interest on your loan.


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