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.
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. In low-rate environments fixed is often preferred for budgeting.
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.
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.
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.
As an Amazon Associate I earn from qualifying purchases — the price does not change for you.