Mortgage instalment calculator
A mortgage is usually a very big financial commitment that lasts for a long time. Before you apply for one, it's a good idea to take a careful look at your income (especially looking ahead) and to work out how much money is left over once you've taken care of your usual expenses. A mortgage payment shouldn't be more than one third of your disposable income.
According to how much you need, our calculators let you simulate the payments you would have to make depending on the length of the mortgage, or the amount you could ask to borrow according to how much you think you can afford.
There are two parts to a mortgage payment: the principal, i.e. the amount you borrow and the interest, i.e. the interest owed on the loan. You can pay back a loan in various ways In Italy, the most common amortization scheme is the French method: the fixed-rate amount consists of an increasing amount of principal and a decreasing amount of interest.
Given the same amount for the loan and the same interest rate, the shorter the length, the bigger the payments, but the lower the amount of interest; the longer the loan lasts, the greater the amount of interest due but the lower the payments.
If you know how much you would need, the interest rate and the length of the mortgage, this calculator lets you simulate the amount you would pay depending on the frequency (monthly, quarterly, every six months or yearly).
You'll also be able to see how the rate varies if you change the terms of your loan by simulating loans that are shorter by 5 and 10 years and longer by 5 and 10 years than the one you put in to start with.
In our simulation, interest rates don't change during the period of the loan (you can simulate the impact of a change in the interest rate by looking at the graphs for comparison) and interest rates are calculated based on how often payments are made, i.e. monthly, quarterly, every six months or yearly.
Interest is the most important part of mortgage costs, but you have to add on other costs (notary fees, taxes and insurance) that aren't included in our simulations.
To keep things simple we haven't put any limits on the interest rate that you can put in. Have a look at the Bank of Italy's website to see the limits above which interest rates are considered to be usurious.
Just as a reminder, using this calculator doesn't guarantee that you'll be granted a mortgage. This assessment, together with that of the terms and conditions that will be applied in your case, is the responsibility of the bank or financial intermediary that you apply to for a mortgage.