Mortgage Calculator

How the monthly payment is calculated

This calculator uses the French amortisation method — the standard for mortgages in Spain. Your monthly payment stays constant throughout the term: in the early years most of each payment covers interest; as time passes, a larger share reduces the outstanding balance. Formula: payment = principal × (monthly rate) / (1 − (1 + monthly rate)⁻ⁿ), where n is the total number of payments.

Mortgages in Spain: what you need to know

Spanish mortgages can be fixed-rate, variable-rate (linked to the Euribor), or mixed. Variable-rate mortgages are common for residents. Non-residents buying a holiday home or investment property in Spain typically face a maximum loan-to-value of 70%, compared to 80% for residents. This calculator uses a fixed rate; if you have a variable mortgage, re-run it whenever your rate is reviewed.

Overpayments: reduce the term or reduce the monthly payment?

When you make an overpayment, you choose where it goes: reducing the term (you pay off the mortgage sooner and save more total interest) or reducing the monthly payment (you free up cash flow each month). Reducing the term is usually the more cost-efficient option. Reducing the payment may be preferable if you need to lower your monthly outgoings.

Frequently asked questions

What is an amortisation schedule?

It is the table that breaks down each monthly payment: how much goes to interest, how much reduces the principal, and what balance remains. It shows you exactly when you will have paid off half the loan.

Are the results accurate?

Results are indicative. Your actual payment may differ due to arrangement fees, linked insurance, or specific conditions in your mortgage offer. Always refer to your bank's binding offer for the definitive figures.

Can I compare different overpayment strategies?

Yes. Use the 'New strategy' button to add prepayments and compare the impact of different approaches side by side on the same chart.