What income do you need to buy in Switzerland?

Enter the property price and your equity: find out the gross income needed and whether your down payment is enough.

The property you want

CHF
CHF
Advanced settings
Required gross annual income
—
Equity required (min 20 %)—
Mortgage—
Theoretical annual costs
Theoretical interest (5 %)—
Maintenance (1 %)—
Amortisation—
Total theoretical costs—

💰 Estimated monthly costs

Mortgage interest (2 %)—
Amortisation—
Maintenance & charges (1 %)—
Total monthly cost—
⚠️ Indicative estimate based on the standard rules of the Swiss mortgage market. Each bank applies its own criteria. This calculation is not a financing offer.
↩ Calculate my purchase budget instead Know your income? Find out the maximum price you can aim for.

How is the required income estimated?

Swiss banks require that theoretical housing costs (interest at 5 %, maintenance at 1 % and amortisation) do not exceed one third (33 %) of gross income. The required income therefore equals the theoretical annual costs multiplied by three.

At the same time, you must have at least 20 % of the price in equity, half of which (10 % of the price) must be «hard» equity (excluding pillar 2). If your down payment is below 20 %, the purchase is not financeable, whatever your income.

Detailed calculation method

This calculator takes the affordability question the other way round: you start from the price of a specific property, and it derives the minimum income the bank will require.

The calculation in three steps

mortgage = price − (equity − purchase costs)
costs = mortgage × 5 % + 1 % of price + (mortgage − 65 % of price) ÷ 15
income needed = costs ÷ 33 %

The often-forgotten point is the first one: your equity first pays the purchase costs, which cannot be financed. Only what remains counts as down payment. On a CHF 800,000 property in a canton with 4 % costs, CHF 200,000 of savings is worth only CHF 168,000 of down payment — 21 % of the price, barely above the minimum.

The calculator therefore checks two things in parallel: is the income enough, and is the cash enough? The verdict shows the shortfall where relevant, and the estimate of real monthly costs uses the market rate you enter, separate from the theoretical rate.

Limitations and accuracy

The income shown is a gross annual household income. Banks work with gross figures, before contributions and taxes. Two incomes are usually added together, but variable parts (bonuses, commissions, overtime) are often weighted at 50 % or set aside if they have not been regular for several years.

Two other gaps with a bank's figure: the price used must be the appraised value rather than the asking price (if the appraisal is lower, the required down payment rises accordingly); and at least 10 % of the price must come from equity other than the second pillar. Existing loans (leasing, consumer credit) are also added to the charges, which this calculator does not do.

Frequently asked questions

Is the income shown gross or net?

Gross, and annual. That is the Swiss banking reference: the 33 % ratio applies to income before social contributions and taxes.

Can a couple's incomes be added together?

Yes, that is standard practice when both people are co-borrowers and jointly liable. Be aware, though, that variable income or a recent employment contract may be weighted down by the lender.

What if the equity is not enough?

There are three levers: use pillar 3a, withdraw or pledge part of the second pillar (up to half of the required equity), or obtain a gift or advance on inheritance. Failing that, aim for a lower price: the calculator shows the effect immediately.

Why does my bank quote a different amount?

Because parameters vary between institutions: theoretical rate from 4.5 % to 5.5 %, maximum affordability of 33 % or 35 %, maintenance from 0.7 % to 1 %. All three are editable above so you can reproduce your adviser's assumptions exactly.

Sources and references