Calculating target house price from deposit amount + salary


New member
Hey @Baptiste Wicht - here's a question about your article on buying a house in Switzerland, and calculating what your price range / target is.

So your super handy formula works for the normal 20% deposit:

(Net Income / 3) * (1 / 0.062) * (1/0.8)

However - what if we have a certain deposit amount that's more than the 20% figure we get with the above formula?

And yet, we still want to use our income + costs estimate as the basis for our monthly mortgage repayments.

So with a larger deposit, but our same income + expenses, is it possible to calculate our price range / target?

Does that make sense?

Yes, the question makes sense :)

The 0.8 in the formula is the amount to be covered by the mortgage. It's 1 - 0.2, and the 0.2 represents the 20% downpayments. So you can vary that.

For instance with a net income of 100'000 CHF:
* 20%: (100000/3)*(1/0.062)*(1/0.8) = 672K
* 30%: (100000/3)*(1/0.062)*(1/0.7) = 768K
* 40%: (100000/3)*(1/0.062)*(1/0.6) = 896K

So, the more you put down, the more you can theoretically afford based on your income.

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Excellent, thank-you. So it's quite simple in the end. I was really struggling to think of the maths 🤔

And then it's just up to each bank to see how they judge your bonus and such for what your net income is.

Thanks again!