How is the monthly mortgage payment calculated?

For an annuity loan: monthly payment = loan amount × (monthly rate × (1 + monthly rate)^months) / ((1 + monthly rate)^months − 1). For example, a €200,000 loan at 4% for 25 years gives a monthly payment of approximately €1,056.

What is the difference between an annuity loan and an equal principal loan?

An annuity loan has the same monthly payment throughout the term — early payments are mostly interest, later payments are mostly principal. An equal principal loan has decreasing monthly payments because the principal repayment stays fixed while interest decreases over time.

What interest rates do Finnish banks offer in 2026?

Finnish home loans are typically tied to the 12-month Euribor rate plus a bank margin. Total rates in 2026 typically range from 3–5% depending on the Euribor level and your bank margin (usually 0.7–1.5%).

How much of a mortgage can I get in Finland?

Finnish banks typically lend up to 90% of the property value for first-time buyers (with government guarantee) and 70–80% for subsequent purchases. The loan amount is also limited by your income — monthly payments should not exceed about 35–40% of net income.

Finnish Mortgage Calculator

Calculate your home loan monthly payment, total interest and full repayment schedule. Supports annuity and equal principal loan types.

Loan amount: 200 000 €

10 000 €1 000 000 €

Annual interest rate (%): 4 %

0,1 %15 %

Loan term (years): 25 yr

5 yr30 yr

Monthly payment

1 055,67 €

Total interest

116 702,10 €

Total cost

316 702,10 €

Annuity: equal monthly payments throughout the loan term.

The mortgage calculator shows the monthly payment, total interest and repayment based on loan amount, interest rate and term. You can compare annuity and equal-principal loans.

How the calculator works and what it’s for▾

How is the monthly payment calculated?

In an annuity loan the payment stays constant: payment = principal × monthly rate / (1 − (1 + monthly rate)^(−months)). Early on most of the payment is interest, later it is principal.

With equal principal, the amortization is constant and the payment shrinks over time — total interest is lower but early payments are higher.

What affects the rate

A mortgage rate is the reference rate (usually 12-month Euribor) plus the bank’s margin. A variable-rate loan gets pricier as Euribor rises — stress-test your payment at, say, 6%.

Example

A €200,000 loan over 25 years at 4% → about €1,055 per month and roughly €116,000 total interest. Shortening the term or making extra payments cuts total interest significantly.

Tips

Compare bank margins — a 0.3 percentage-point difference is thousands of euros over the loan. Consider an interest-rate cap if rising rates worry you. Remember transfer tax and loan fees in your total budget.

🔄 Reviewed June 2026