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.

The Euribor and variable-rate mortgages in Spain

The Euribor (Euro Interbank Offered Rate) is the interest rate at which eurozone banks lend to each other and is the benchmark most commonly used for variable-rate mortgages in Spain. When the Euribor rises, variable-rate borrowers see their monthly payment increase at the next annual or semi-annual review. In January 2022 the 12-month Euribor was around −0.5%; by late 2023 it had exceeded 4%, adding over €300–400/month to many mortgage payments. If you have a variable or mixed mortgage in the variable phase, use this calculator by entering the rate equal to your bank's spread plus the current Euribor — for example, if your spread is +0.75% and Euribor is at 3.5%, enter 4.25% — to calculate your new payment after the next review.

Legal framework: the LCCI and your rights as a borrower

The Spanish Mortgage Credit Act (Ley 5/2019, LCCI) governs mortgage contracts in Spain and establishes key consumer protections. Before signing, the bank must provide the FEIN (European Standardised Information Sheet) at least 10 days in advance so you can review the offer. There is also a mandatory pre-signing appointment with the notary. Early repayment fees are capped by law: for fixed-rate mortgages, the maximum is 2% in the first 10 years and 1.5% thereafter; for variable-rate mortgages, the cap is 0.25% in the first three years and 0.15% between years four and five, with no fee from year six onward. Knowing these limits is essential for calculating the true net saving from any early repayment.

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.

What is the difference between a partial early repayment and full early settlement?

A partial early repayment reduces the outstanding principal without closing the mortgage: the bank then lets you choose between shortening the term or reducing the monthly payment. Full early settlement closes the mortgage entirely. Both may incur a fee within the limits set by the Spanish Mortgage Credit Act (LCCI). Full settlement also involves notary fees to lift the mortgage charge, though since 2019 these are generally borne by the bank.

How much income do I need to qualify for a mortgage?

As a general rule, Spanish banks require that the monthly mortgage payment not exceed 30–35% of the borrower's net monthly income. For a mortgage with a payment of €800/month, you would need to demonstrate net income of at least €2,300/month. Other factors include the type of employment contract, savings available (typically 20% of the purchase price plus transaction costs), and a clean credit history.