Mortgage payment calculator

For equal payments we use the annuity formula: the payment stays the same, and in the early years most of it is interest. With decreasing payments you repay the same share of principal each month plus interest on the remaining balance, so you start higher and the payment falls over time.

If you choose fixed-then-variable interest, the payment is recalculated at the end of the fixed period on the remaining balance and term. In Romania the variable rate is usually IRCC plus the bank's margin. Its future value can't be known, so the figure you enter is an estimate. The “Variable: IRCC + margin” option uses today's IRCC plus your margin for the whole term; in reality the payment is recalculated whenever IRCC changes, usually every quarter.

The APR (DAE in Romanian) includes upfront fees and monthly costs. We calculate it as the rate that equates the amount you actually receive with all future payments, then annualise it. It is the right figure for comparing two offers.