Bruto jaarinkomen (Gross annual income)

What is bruto jaarinkomen (gross annual income)

The gross annual income (or gross annual salary) is the income before deductions. Read what is included in the gross annual salary. We also provide a handy rule of thumb to calculate this.

Calculate gross annual income

The gross annual income is the income per year before deductions, such as wage tax, have been made. The gross annual income includes:

  • Holiday pay 
  • Thirteenth month 
  • Year-end bonus 
  • Profit distribution 
  • Social benefit 
  • Allowances (irregular work and overtime) 
  • Expenses 
  • VEB allowance

Rule of thumb gross annual income

There is a handy rule of thumb for calculating the gross annual salary, for both individuals and entrepreneurs. Please note: this gives an indication of the gross annual income. For a mortgage offer, the test income must be calculated exactly.

  • Private individuals: gross monthly salary x 12 x 108% (holiday allowance) + thirteenth month (other fixed allowances such as shift allowance may be added to this).
  • Entrepreneurs: The average net profit of the past three years taken. Take the turnover, before tax, from which the business costs have been deducted.

Gross annual salary and maximum mortgage

When taking out a mortgage, the gross annual income first determines how much can be borrowed. The higher the income, the more you can borrow. By calculating the maximum mortgage based on the gross annual income, you prevent the monthly costs from becoming too high.

Every year, the government determines how much of the gross income you can spend on the mortgage. This is called the housing ratio. The NIBUD advises annually and largely determines the housing ratio. This includes looking at the development of gross annual income in the Netherlands.

Find your maximum mortgage amount base on your gross annual income here!

Mortgage terms
Aankoopkosten (Purchase costs)
There are several additional costs associated with the purchase of a house. These one-time costs are called purchase costs. Afsluitkosten (Closing cost)
"Afsluitkosten" refers to the closing costs associated with taking out a mortgage. These costs include commissions, appraisal fees, notary fees, and fees for applying for a National Mortgage Guarantee (NHG). Bankgarantie (Bank guarantee)
When buying a house you will be asked for a bank guarantee. The bank guarantee is a guarantee that you, as the buyer of a house, must give to the civil-law notary. Belastingaftrek (Tax deductions)
The government has various tax measures that are favorable to homeowners with a mortgage. Betalingstermijn (Term of payment)
The payment term is the periodic term in which you pay the interest, premium and possibly also the repayment. Boeterente (Penalty interest)
Lenders charge a penalty if the mortgage is repaid earlier than agreed in the mortgage deed, for example when refinancing. With the penalty interest, the lender compensates for the lost income from the mortgage. Bouwfinanciering (Construction finance)
Construction financing is the way in which you can finance a new building. Bruto jaarinkomen (Gross annual income)
The gross annual income (or gross annual salary) is the income before deductions. Read what is included in the gross annual salary. We also provide a handy rule of thumb to calculate this. Bruto maandlast hypotheek (Gross monthly mortgage payment)
Gross means 'without deduction'. The gross monthly payment for a mortgage is the amount that is paid monthly without mortgage interest deduction without tax settlement. Eigen geld (Own money)
You can use this capital to finance your house. This capital is called equity. Own money offers on the one hand the possibility to borrow less