Real estate
How do you calculate a monthly mortgage payment?
Monthly payment, total interest and total cost of the mortgage (French amortization).
Quick answer
French amortization: monthly = P × i ÷ (1 − (1 + i)^−n), where P = loan amount, i = annual rate ÷ 12, n = years × 12. €150,000 at 3.2% over 25 years: i = 0.00267, n = 300 → monthly payment ≈ €726.
Monthly payment
$727.02
- Total interest
- $68,105.54
- Total cost of the loan
- $218,105.54
Standard amortization on the nominal rate. The real APR also includes fees and insurance.
How it works
Early payments are mostly interest; principal repayment grows each month. Total interest over 25 years on this example is roughly €67,800 — use the calculator to compare rates and terms before signing, and stress-test +2% rate hikes on the monthly figure.
Gather payslips, tax returns and savings proof in a document organizer before bank meetings — missing paperwork delays Italian approvals. A personal finance book explains TAEG vs TAN without sales jargon; store signed contracts in a home safe. General guidance only — not mortgage advice; confirm rates, insurance and eligibility with your bank or a licensed advisor.
Because the early instalments are almost all interest, when an overpayment happens matters far more than how big it is: money put in during year two removes over twenty years of interest on that amount, while the identical sum in year twenty removes five — often a three or four to one difference for the same euros. If you expect to have spare capacity at some point, its value falls every year you wait. Two things to check in the contract before counting on it: whether overpayment carries a penalty, and whether it shortens the term or lowers the instalment, because only the first saves the interest.
Highlighted links go to Amazon.
Frequently asked questions
Fixed or variable rate mortgage?+
Fixed locks your payment for the full term — peace of mind when rates rise. Variable starts lower but can increase with Euribor. In rising-rate cycles fixed is often preferred for budgeting; variable can win if you plan to sell or refinance within a few years.
What is TAEG vs TAN?+
TAN is the nominal interest rate. TAEG (APR) includes fees, insurance and other costs — the true annual cost. Compare loans on TAEG, not TAN alone; a lower TAN with expensive life insurance can lose to a slightly higher TAN with cheaper bundle.
How does a shorter term affect payments?+
Shorter term = higher monthly payment but much less total interest. 20 years instead of 25 on €150K saves tens of thousands in interest if you can afford the higher instalment — run both scenarios in the calculator side by side.
Can I pay off a mortgage early?+
Most Italian mortgages allow partial or full early repayment with a penalty capped by law (often 0–2% on the amount repaid for fixed-rate). Run the numbers: saved interest vs penalty, and whether you have cheaper debt to clear first.
As an Amazon Associate I earn from qualifying purchases — the price does not change for you.