What it does: Mortgage calculator
Enter how much you borrow, the interest rate and the years, and you'll instantly see the monthly payment, how much you'll pay in interest and how each year splits between principal and interest. It also shows how much the payment would rise if the rate goes up one point.
If you plan to pay money back early, simulate the early repayment and compare the two options banks offer: shorten the term (keep the payment) or lower the payment (keep the term).
How to use it
- Enter the loan amount, the annual rate and the term in years.
- Read the monthly payment, total interest and total to repay.
- Turn on early repayment to say how much you pay back and when.
- Compare “shorten the term” and “lower the payment” and check the year-by-year schedule.
Examples
€180,000 over 30 years at 2.9%
The payment comes to about €749 a month and you'd pay around €89,700 in interest in total.
Paying back €10,000 in year five
Shortening the term saves more interest than lowering the payment, because you return the money sooner.
Limits, formulas and assumptions
- It uses the French amortization method, the usual one in Spain and much of Europe: a fixed payment, with more interest at the start and more principal at the end.
- The nominal rate is the interest applied to the loan; the APR also includes fees and costs and is the figure for comparing offers.
- With variable mortgages the payment changes at each review: use the current reference rate plus the margin as an estimate.
- Early repayment fees (if any) are not included in the saving.
Frequently asked questions
Which is better: shorter term or lower payment?
A shorter term saves more interest. A lower payment gives you more room each month. If you can afford the current payment, shortening the term usually pays off more.
Why do I pay almost only interest at first?
Because interest is charged on what you owe, and at the start you owe almost everything. Over the years the debt falls and the payment repays more principal.
How much will the bank lend me?
As a rule of thumb, banks lend up to 80% of the valuation and want the payment to stay below 30–35% of your net income.
Does it include insurance and costs?
No. Only the loan and its interest. Add linked insurance, valuation, notary and purchase taxes separately.