How this mortgage calculator works
This calculator handles the two repayment structures used across most of Europe: annuity (a fixed monthly payment that combines interest and principal, with the split shifting over time) and linear (a constant principal repayment with interest that decreases as the balance drops, so monthly payments start high and gradually fall). Most homebuyers default to annuity because the predictable monthly is easier to budget around; linear costs less in total interest because the balance shrinks faster.
The loan-to-value (LTV) ratio shown in the results is the mortgage amount divided by the property price. Lenders use LTV to set rates — lower LTV (bigger down payment) usually unlocks better rates. In the Netherlands, LTV above 100% is no longer allowed; in many EU countries the practical maximum is 90–95% for first-time buyers.
Can I actually afford this mortgage?
The monthly payment is the easy number. The harder question is whether that payment is sustainable for the next 25–30 years across job changes, kids, recessions, and life. Three rules of thumb worth knowing:
The 28/36 rule
Housing costs should not exceed 28% of your gross monthly income. Total debt payments (housing + all other loans) should not exceed 36%. "Housing costs" here means mortgage + property tax + insurance + maintenance reserve, not just the mortgage itself. A €2,000/month mortgage on €5,000/month gross income is right at the 40% line — uncomfortable territory, especially for first-time buyers without much financial buffer.
The 5x income cap
In most EU countries, regulators cap how much you can borrow at roughly 4–5 times your gross annual income. In the Netherlands, the official "Loan-to-Income" (LTI) standard uses your gross income plus partner income and produces a maximum mortgage that's typically around 4.5x household income. This isn't just a regulatory limit — it's a sanity check. Borrowing the maximum you're legally allowed almost always feels affordable in year one and almost always feels stretched by year five.
The "stress test" question
Before signing, ask: if interest rates rose 2 percentage points and you had to refinance, could you still afford the payment? Try it in the calculator — bump the rate from 4.2% to 6.2% and see what happens. If the new monthly would push you above the 36% line, you're more exposed to rate-cycle risk than is comfortable.
Annuity vs. linear — which is right for you?
Toggle between the two in the calculator to see the difference. Here's the trade-off in words:
Annuity (the default)
Same monthly payment every month for the full term. In year 1, most of each payment is interest. In year 30, most is principal. Easier to budget, predictable, dominant in the Dutch and German markets. Downside: you pay more total interest because the balance shrinks slowly in the early years.
Linear
Fixed principal repayment each month (loan amount ÷ months), plus interest on the remaining balance. Month-1 payment is high; month-360 payment is much lower. You pay less total interest because the balance shrinks faster, but the early years are painful. Linear works for buyers with strong starting income who expect their real terms to ease over time (rather than rise with kids, mortgages elsewhere, etc.). In the Netherlands, linear is more common among investors and buyers using the mortgage interest deduction.
Concrete example for a €315,000 loan at 4.2% over 30 years:
- Annuity — €1,541/month every month. Total interest: ~€239,500.
- Linear — starts at €1,978/month, ends at €878/month. Total interest: ~€198,800.
Linear saves roughly €40,000 over the life of the loan, but the first decade is meaningfully more expensive each month. Whether that trade is worth it depends entirely on your cash flow profile.
The costs nobody tells you about
The mortgage payment is only one part of what owning a home actually costs. Budgeting for the mortgage alone is the single most common mistake first-time buyers make.
One-time costs at purchase
- Transfer tax (overdrachtsbelasting in NL, droits de mutation in FR, Grunderwerbsteuer in DE) — typically 2–8% of property price depending on country and buyer status. The Netherlands has a 0% rate for first-time buyers under 35 buying below ~€510k, but it's 2% otherwise and 10.4% on investment properties.
- Notary fees + registration — typically €1,500–€3,000 in NL/BE/DE.
- Mortgage adviser + arrangement fee — €2,500–€4,000 if you use a broker.
- Valuation report (taxatie) — €500–€800, required for the mortgage.
- NHG (NL only) — €1,200–€2,000 one-off premium, but it lowers your interest rate meaningfully (often by 0.3–0.5%), so it usually pays for itself within a few years on properties under the NHG ceiling.
Realistic total: 4–8% of property price on top of the price itself, in cash, that the mortgage doesn't cover. For a €350,000 home, expect €15,000–€25,000 in additional purchase costs. If you're saving for these, our savings goal calculator can work out the monthly contribution needed to be ready by a specific buying date.
Ongoing costs of ownership
- Property tax (OZB in NL, taxe foncière in FR, Grundsteuer in DE) — €400–€1,500/year for a typical home, paid annually.
- Home insurance — €300–€800/year, mandatory.
- VvE / Wohngeld / syndic fees (apartments only) — €100–€400/month for shared building costs and reserves.
- Maintenance reserve — budget at least 1% of property value per year. For a €350k home that's €3,500/year. Most people don't, and then get hit hard when the boiler dies in year 5.
Add all of that up and a "€1,500/month mortgage" on a €350k house realistically costs more like €1,900–€2,100/month in true monthly housing cost. That's the number that should fit inside the 28% income rule, not the mortgage payment alone.
Should you pay extra on your mortgage?
This is one of personal finance's classic questions. The math says: only if your mortgage rate exceeds what you could earn investing the same money elsewhere.
At a 4% mortgage rate, every euro of extra payment "earns" 4% (because it kills 4% interest on next month's balance). If you can invest the same euro at an expected 7% in a diversified equity portfolio over the same timeframe, investing wins by 3 percentage points per year — significant over decades. Our compound interest calculator lets you model exactly how much the alternative investment would grow to.
But the math isn't the whole story. Paying down the mortgage is guaranteed; investment returns are not. Many people sleep better knowing the house is closer to paid off, and the psychological return on debt-freedom isn't on any spreadsheet. A reasonable middle ground: invest most of the surplus, but make modest extra mortgage payments (1–2 extra months' worth per year) so you feel progress on both fronts.
Fixed-rate periods and what to do when they end
In the Netherlands, Germany, Belgium and France, mortgages are commonly issued with a fixed-rate period (rentevaste periode in Dutch, Zinsbindung in German) — typically 5, 10, 15, or 20 years — after which the rate resets to the prevailing market rate. This is structurally different from US 30-year fixed mortgages, which lock the rate for the entire term.
The key question when choosing a fixed-rate period: how much extra are you willing to pay today to lock in certainty? Longer fixed periods mean higher rates but no surprises. In a low-rate environment, locking in for 20+ years is often worth the premium. In a high-rate environment, shorter fixed periods bet that rates will fall.
When the fixed period ends, you can usually: (a) accept the new rate offered by your existing lender, (b) refinance to a different lender (with associated costs), or (c) prepay some of the loan to reduce the new monthly. The decision is the same one you made at the start — comparing offers across lenders — except now you have real equity in the property to negotiate with.
Common mortgage mistakes
Buying at the maximum the lender allows
Just because a lender will give you €450k doesn't mean you should borrow €450k. Lenders don't know your career risk, your family plans, your other goals. Borrow what's comfortable, not what's possible. A useful rule: aim for a mortgage payment under 25% of take-home pay, not 33%. The extra cash flow buys flexibility for everything else.
Ignoring total cost
A 30-year mortgage at 4% on a €315,000 loan costs roughly €224,000 in interest over the full term. You repay €539,000 to own a €350,000 house. Most homebuyers never internalize this number. Try the calculator with different terms — a 20-year mortgage at the same rate costs about €145,000 in interest. The monthly is higher, but you save €80,000 over the life of the loan.
Skipping the buffer
Closing a home purchase with €0 left in savings is common and dangerous. The first year of homeownership reliably surfaces 2–4 unexpected expenses (a broken appliance, a roof leak, a boiler service). Try to land in the new house with at least 3 months of mortgage payments in cash, separate from the down payment and purchase costs.
Frequently asked questions
Why doesn't this calculator include transfer tax and notary fees?
Because those vary so much by country, buyer status, and property type that any included estimate would mislead more than help. Use the "hidden costs" section above as a guide: budget roughly 4–8% of property price for one-off purchase costs in addition to the down payment. Calculate the mortgage on the loan amount (property price minus down payment) only.
Is "aflossingsvrij" (interest-only) supported?
Not directly. Interest-only mortgages don't repay principal, so the monthly is just (loan × rate / 12) and the balance never decreases — the whole loan is due at the end of the term. They're heavily restricted in the Netherlands (max 50% of property value, no new tax deduction since 2013) and worth modeling separately if you're considering one. For now, use annuity or linear and treat aflossingsvrij as a niche product to discuss with a mortgage adviser, not a calculator default.
Does this account for the Dutch mortgage interest deduction?
No — the calculator shows pre-tax costs. The Dutch hypotheekrenteaftrek reduces the effective cost of your mortgage interest by your marginal tax rate, but the rules are complex (linear/annuity only, max 37% deduction in 2026, applies to your primary residence only), and the deduction is being phased down over time. For a realistic after-tax monthly cost, subtract roughly 30–37% of the interest portion of your annuity payment in the early years. This makes a much smaller difference in the later years when most of the payment is principal.
Should I go for a longer or shorter term?
Shorter terms save dramatically on total interest but require higher monthly payments. A useful exercise: pick the longest term you'd accept, then check what the monthly looks like at a 10-year-shorter term. If the shorter-term monthly is within 20% of the longer-term monthly, take the shorter term. If it's more than 25% higher, take the longer term but plan to overpay when cash flow allows.
What's a realistic interest rate to model?
EU mortgage rates in 2026 are sitting in the 3.5–5% range for prime borrowers, depending on country, LTV, and fixed-rate period. NHG-eligible mortgages in NL are typically 0.3–0.5% below the standard rate. If you don't have a quote yet, use 4.2% as a reasonable middle estimate and stress-test by trying 6% to see what your worst-case monthly would look like.
How does this compare to a personal loan?
Mortgages have much longer terms (typically 25–30 years vs 1–7 for personal loans) and much lower rates (3–5% vs 5–12%), because they're secured by the property. If you're comparing a small home-improvement mortgage extension vs. a personal loan, use our loan calculator for the personal loan side and compare total costs — sometimes the lower rate of a mortgage extension wins, sometimes the shorter term of a personal loan wins.