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Debt-service ratio and borrowing capacity calculator

The new 45% limit from Banco de Portugal (central bank), the rate stress test, and the term capped by age — the maths the bank will do, worked out before you go in.

Household total: everything that lands in the account, after tax and social security.

Car, personal, credit cards — everything you already pay monthly counts towards the DSTI.

yrs

Sets the recommended maximum term: 40 years up to age 35; 35 years above that.

yrs
Rate type

The stress test only applies to variable or mixed rates — a fixed rate carries no shock.

%

You can adjust it to match the reference rate in your own proposal.

%

The bank’s margin on your proposal.

Turn on to also apply the 90% loan-to-value cap (LTV, primary residence).

The bank can lend you up to

€206,663

Estimated real payment: €942.26/month — debt-service ratio of 37.7%

Where this number comes from

Recommendation ceiling — 45% of income€1,125.00
= Maximum test payment€1,125.00
Rate used in the stress test5.123% (TAN 3.623% + 1.5 pp shock)
Maximum principal under the DSTI, over 30 years€206,663.22
Maximum you can borrow€206,663.22
Estimated real payment (no shock)€942.26
Real debt-service ratiobetween 35% and 45% — banks look more closely37.7%

Since 1 August 2026, Banco de Portugal recommends a maximum DSTI of 45% (previously 50%), calculated using the payment at a stressed rate. It’s a recommendation, not a ban: up to 10% of each bank’s new lending can exceed it, on an exceptional basis — the final decision is always the bank’s.

How the calculation works

The bank doesn’t ask how much you want to borrow — it asks how much you can afford in a bad month. Banco de Portugal’s macroprudential recommendation turns that into three tests: the sum of all loan payments must not exceed 45% of the household’s net income, the payment is simulated at a rate stressed by the term’s shock, and the term itself is capped by the age of the oldest borrower.

The calculator does the maths in the bank’s order: it applies the 45% to your income, deducts the payments you already make, stresses the rate with the shock (except on a fixed rate), and converts the remaining test payment into principal, over the effective term. If you turn on the property price, it also applies the 90% financing cap — whichever gives less is your maximum.

Important: it’s a recommendation, not a law. Each bank can exceed the limit on up to 10% of the new lending it grants, on an exceptional and justified basis — but since 1 August 2026 the margin is narrower, and most proposals will sit close to these numbers.

Once you know your maximum, the next step is the full tally of the money you need on the day of the deed — down payment, taxes, registrations — in the total purchase costs calculator, and the payment in detail, with the amortization table, in the mortgage payment calculator.

Frequently asked questions

What changed with Banco de Portugal’s new recommendation?
For solvency assessments made from 1 August 2026, the recommended debt-service ratio (DSTI) limit fell from 50% to 45%, banks’ margin for exceptions shrank from 15% to 10% of new lending, the maximum term became 40 years up to age 35 (35 years above that), and the exception allowing 100% financing of bank-owned properties ended — the general cap is 90% of the price for a primary residence and 80% for other purposes.
How is the debt-service ratio calculated?
It’s the share of the household’s net monthly income consumed by all loan payments — mortgage, car, personal loans, credit cards. With €2,500 net, the 45% ceiling means €1,125 of payments in total. Careful: whatever you already pay on other loans is deducted euro for euro from what’s left for the home.
Why does the bank test with a higher rate than the one you signed for?
The recommendation requires simulating the payment with a shock added to the rate: +0.5 percentage points for terms up to 5 years, +1.0 between 5 and 10, and +1.5 above 10 years — the case for almost every mortgage. With Euribor at 2.723% and a 0.9% spread, the 3.623% TAN is tested at 5.123%. A fixed rate carries no shock, so the same test payment yields more principal.
How much can I borrow with €2,500 net?
With no other loans, over 30 years at a variable rate (Euribor 2.723% + 0.9% spread): the maximum test payment is €1,125, which at the stressed rate of 5.123% corresponds to ≈ €206,663 of principal. The real payment would come to €942.26 — a 37.7% debt-service ratio. With a fixed rate, the maximum rises to ≈ €246,744; with €300 of other loans, it drops to ≈ €151,553.
Is there a term limit based on age?
Yes: 40 years is the recommended maximum term for borrowers up to age 35, and 35 years for everyone else. And if the contract would run past your 70th birthday, the bank is advised to simulate your reduced retirement income — in practice, the approved maximum can end up lower than the plain calculation suggests.

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