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Effort Rate Simulator
Calculates the weight of your expenses in the household budget
Calculate your Effort Rate
Discover the percentage of your income that is allocated to credit payments
Effort Rate
0.00%
Until July 31, 2026, the reference limit for the effort rate is 50%. From August 1, 2026, this limit changes to 45%, according to the recommendation of Banco de Portugal.
You have a comfortable safety margin. Banks usually approve financing at these values.Simulate MortgageThe effort rate is the percentage of net monthly income that is committed to paying charges and credit installments. In practice, it indicates the percentage of income used by current responsibilities. It is one of the main indicators that banks use to assess the risk of a loan. The lower the effort rate, the more balanced the budget is, and the higher the likelihood of a credit application being approved.
The calculation is simple: add up the monthly burdens and the rent or payment you make, divide this total by the net monthly income, and multiply by 100 to get the percentage. Effort Rate = ( Total Credit Payments ÷ Net Monthly Income ) × 100. For example, if you have a monthly income of 2,500 euros, a rent of 500 euros, and other burdens of 300 euros, your effort rate is (500 + 300) ÷ 2,500 × 100, which is 32%. Important note on income: consider regular and recurring net income. Variable or non-recurring portions — such as allowances, irregular bonuses, commissions, overtime, or in-kind income — may be weighted differently by the bank and affect the effort rate effectively considered. Our simulator automatically performs this calculation based on the values you enter, and immediately shows you the percentage and corresponding effort level.
Generally, an effort rate up to 35% is considered healthy, indicating a balanced family budget.Between 35% and the reference limit (45%), the effort becomes considerable and requires greater attention to the budget.Above this limit, the effort is high and the risk of payment difficulties increases significantly.These levels are only indicative. The real capacity of each household also depends on income, fixed expenses, and the existence of savings or other guarantees.
Banco de Portugal defines, through a macroprudential recommendation, the maximum effort rate limit that banks must respect when granting credit.Until now, this limit was 50%.From August 1, 2026, the general limit changes to 45%.There is a small margin of exceptions that each bank can apply to a reduced part of its contracts, but the general rule is this.In the simulator, you can choose the reference limit (45% or 50%) to understand how your situation fits.
Not always in the same way.The simulator calculates the effort rate based on the net income you indicate, but the value the bank considers in the evaluation may differ from the total you receive.Banks favor regular, stable, and verifiable income. Variable or non-recurring components — such as allowances, irregular bonuses, commissions, overtime, or in-kind income — are often weighted differently: they may be considered only partially, subject to an average over several months or years, or excluded when not permanent.Therefore, two people with the same amount received may have different financing capacities, depending on the nature and stability of the income.For a more realistic reading, consider mainly fixed and recurring income and, in case of doubt, confirm with CrediSegur how each component is framed.
Because the effort rate considers the set of all credit commitments, not just one.When a bank evaluates a mortgage application, it adds the new house payment to all other credits you already have, such as auto loans, personal credit, or credit cards.Therefore, for the simulation to reflect your real situation, it's important to include all relevant monthly burdens.An effort rate that seems comfortable when looking at just one credit can prove high when all financial responsibilities are added up.
The effort rate depends on three factors: net income, monthly burdens, and the value of the future payment.Increasing income decreases the effort rate.Increasing burdens or the payment raises the rate.In the case of a mortgage, the financed amount and the term have a direct effect on the monthly payment: a larger loan or a shorter term usually results in a higher payment.That's why two households with the same income can have very different effort rates.
Not necessarily, but it makes it difficult.An effort rate above the recommended limit signals to the bank a higher risk of default, so most applications in this situation tend to be declined.Still, financial institutions have a margin to approve a small percentage of contracts above the limit, usually when there are high incomes, financial assets, or other relevant guarantees.There are also ways to improve the effort rate before applying for credit, such as consolidating existing credits, reducing monthly payments, increasing the initial down payment, or opting for a longer financing term.
No.The simulator provides an estimate based solely on the values you enter, allowing you to get an indication of your effort rate and financial situation.In the analysis of a credit application, banks may consider additional factors, such as an increase in the interest rate, a possible reduction in income after retirement, or internal evaluation criteria.The simulation is only a tool to support financial planning and does not constitute a credit decision.For a personalized and definitive assessment, you should consult CrediSegur.
The average net monthly income is the average amount the household has available each month to cover its expenses, after taxes and mandatory contributions.This indicator is used in the analysis of the household's financial capacity and is one of the elements considered in the evaluation of credit applications.
The calculation is done by adding up all the recurring annual net incomes of the household and dividing that amount by 12 months.Formula:Average Net Monthly Income = Total Annual Net Incomes ÷ 12.
Because the goal is to determine an average monthly amount available throughout the year.Employees typically receive 14 annual remunerations (12 salaries, vacation allowance, and Christmas allowance). To correctly reflect the average monthly income, this annual amount should be divided by 12 months.Example:Net monthly salary: 1,500 €Annual total: 1,500 € × 14 = 21,000 €Average net monthly income: 21,000 € ÷ 12 = 1,750 €.If the allowances are paid in twelfths, just consider the net monthly amount received.
Consider the annual net salary, including vacation and Christmas allowances.Formula:(Net monthly salary × 14) ÷ 12Example:Net monthly salary: 1,800 €Average net monthly income: (1,800 € × 14) ÷ 12 = 2,100 €.
In the pre-analysis phase, it is considered, for simplification, that the net income corresponds to 75% of the gross annual billing.Formula:(Gross Annual Billing × 75%) ÷ 12Example:Annual billing: 60,000 €Considered net income: 45,000 €Average net monthly income: 3,750 €.
In these cases, billing should not be used as income, as a large part corresponds to activity costs.For pre-analysis purposes, it is considered, for simplification, that the net income corresponds to 15% of the gross annual billing.Formula:(Gross Annual Billing × 15%) ÷ 12Example:Annual billing: 360,000 €Considered net income: 54,000 €Average net monthly income: 4,500 €.
You should consider the income that effectively enters the household, namely the monthly remuneration and the regular distribution of profits, when applicable.The company's turnover does not correspond to the household's income.
Consider the annual net value of the pension, including any allowances, divided by 12 months.
Consider the annual net income obtained from the rents received, divided by 12 months.
Yes.All recurring incomes that regularly contribute to the family budget should be included, as long as they can be proven.
Occasional or extraordinary incomes should not be considered, such as the sale of properties, sale of cars, inheritances, one-time compensations, occasional bonuses, withdrawals from savings, or other non-recurring receipts.
All annual net incomes of each household member should be summed and the total divided by 12 months.Example:Element A: Net salary of 1,700 €/month → 1,700 € × 14 = 23,800 €Element B: Self-employed with an annual billing of 48,000 € → considered income of 36,000 €Rents: 6,000 €/yearTotal annual: 65,800 €Average monthly net income: 65,800 € ÷ 12 = 5,483.33 €.
Because it allows for a correct assessment of the household's financial capacity, eliminating distortions caused by the payment of holiday and Christmas bonuses, the seasonality of some activities, months with higher or lower billing, and extraordinary incomes.This way, a more realistic view of the household's economic capacity is obtained.
No.This methodology is intended only for preliminary financial analysis and allows for a quick estimate of the household's average monthly net income.The definitive analysis will always depend on the documentation required by the financial institution, such as IRS declarations, settlement notes, pay slips, financial statements, or other documents that confirm the actual income received.