The results provided by this calculator are for information purposes only and do not constitute legal or financial advice.
An amortizing loan is the classic mortgage: each monthly payment repays both a share of the interest and a share of the borrowed capital. Over time, the interest portion decreases while the capital repaid increases, until the debt is fully extinguished at the final instalment.
The monthly payment excluding insurance is derived from the amount borrowed, the monthly interest rate and the number of instalments. The formula is:
Monthly payment excluding insurance = capital × r / [1 − (1 + r)^−n]
where r is the monthly interest rate (annual rate divided by 12 and by 100) and n the total number of instalments (term in years × 12).
Borrower insurance can be calculated in two ways: on the initial capital, in which case the monthly premium stays constant for the whole term; or on the outstanding balance, in which case the premium decreases month after month as the capital is repaid. In that case the displayed amount is the first month's premium, the highest one.
For a loan of €200,000 over 20 years (240 instalments) at an annual rate of 3.5%, with insurance of 0.34% on the initial capital:
Monthly payment excluding insurance ≈ €1,159.92, monthly insurance = €56.67, giving a total monthly payment ≈ €1,216.59.
Over the whole term, the total interest cost is around €78,380 and insurance €13,600, for a total cost of credit of about €91,980 (excluding arrangement and guarantee fees).
These figures are indicative only: the actual rate granted, the insurance calculation method and any additional fees depend on each lender.
