Disposable Income
What is a good disposable income?
December 15, 20252 min read
disposable income
finances
budget
Disposable income is the money you have left once all fixed expenses are paid, it's not the same as your take-home pay. There's no single right number for everyone, it depends on your income, your fixed expenses, and your household. Here's what it looks like in practice: Money in of 32,500 DKK minus fixed expenses of 18,200 DKK gives a disposable income of 14,300 DKK.
How to work it out
The formula is the same no matter what you earn:
- 1. Money in: What lands in your account each month, typically your take-home pay
- 2. Fixed expenses: Housing, insurance, loans, subscriptions, anything deducted automatically
- 3. Disposable income: Money in minus fixed expenses, the rest goes to food, experiences, and savings
What makes the number vary
There's no benchmark that fits every household, but these are the things that move your number the most:
- Housing costs: rent or mortgage is often the single biggest item
- Whether you live alone or share expenses with a partner
- Whether you have a car, which typically adds several thousand kroner to fixed expenses
Frequently asked questions
- What's the difference between take-home pay and disposable income? Take-home pay is what you're paid after tax. Disposable income is what's left of that once all fixed expenses, rent, insurance, loans, subscriptions, are paid.
- What does the bank look at when assessing a loan? The bank looks at your disposable income relative to the loan you're applying for, not a fixed nationwide figure. The requirement varies by bank, loan type, and your wider finances.
- How do I find my own number? Upload your bank statements in Reelt, and get your disposable income calculated automatically from your actual transactions, not a guess.
