Question 1

What is a mortgage calculator?

Accepted Answer

A mortgage calculator calculates the monthly payment, total interest and term of an annuity loan. With the amortization schedule you see year by year how your remaining balance develops.

Question 2

What is the difference between nominal rate and APR?

Accepted Answer

The nominal rate (TAN) is the pure interest rate. The APR (TAEG) is the effective annual rate and also includes the costs linked to the loan such as processing fee, valuation and fees (excluding notary costs). Always compare the APR when comparing banks.

Question 3

What is an extra payment?

Accepted Answer

An extra payment is an unscheduled repayment on top of the monthly payment. It reduces the remaining balance immediately and so saves interest – the earlier, the more. In Advanced mode you can enter extra payments per loan year and a monthly extra payment.

Question 4

Can an Italian bank charge a fee for extra payments? (Legge Bersani)

Accepted Answer

For property loans to private individuals, as a rule no. Art. 120-ter of the Italian Banking Act (TUB) makes void any agreement requiring the borrower to pay the bank a penalty, fee or other consideration for full or partial early repayment; the loan agreement itself remains valid. This applies to loans to natural persons for buying or renovating a residential property or a property in which they carry out their business or profession. The rule comes from the “Legge Bersani” (Decree-Law 7/2007, converted by Law 40/2007; since Legislative Decree 141/2010 in Art. 120-ter TUB) and applies to contracts concluded from 2 February 2007 or, depending on the case, from 3 April 2007. For older contracts, the lower maximum penalties of the agreement of 2 May 2007 between the Italian Banking Association (ABI) and consumer associations apply. Loans to companies, for example, are not covered. Interest up to the day of repayment is still due. In Germany and Austria the law and the loan agreement determine whether and at what cost extra payments are possible. As of September 2026 – check your contract and ask your bank in each individual case.

Question 5

Can I deduct the mortgage interest?

Accepted Answer

In Italy, interest on a mortgage taken out to buy your main residence is deductible from IRPEF: a 19% tax deduction (detrazione) on up to €4,000 of interest per year, i.e. up to €760 in tax savings. Restrictions may apply to higher incomes. Consult a tax advisor or a CAF for details.

Question 6

What additional costs are there when buying property?

Accepted Answer

In Italy, besides interest and fees: notary (approx. €1,500–3,000). Buying from a private seller: registration tax 2% (primary residence) or 9% (other) on the cadastral value, min. €1,000; mortgage and cadastral tax €50 each. Buying from a developer: VAT 4% (primary residence) or 10%; registration, mortgage and cadastral tax €200 each. Imposta sostitutiva on the loan: 0.25% (primary residence) or 2% (other). Bank appraisal (approx. €200–400). Rule of thumb: budget 5–8% in additional costs.

Question 7

What is an interest-only period?

Accepted Answer

During an interest-only period only interest is paid without reducing the principal. In this calculator it is included in the term: afterwards the loan is repaid over fewer months, so the payment is higher and total interest increases. Common in new builds.

Question 8

What does shorten term vs. reduce payment mean?

Accepted Answer

With “shorten term” the monthly payment stays the same and the loan is paid off earlier – you save interest. With “reduce payment” the term stays the same and the extra payment reduces the future monthly payment – more monthly flexibility.

Question 9

What does the interest rate risk check show?

Accepted Answer

It shows what your payment would be if the rate rose to the entered value – with the same amount and term. Useful for variable-rate loans (tasso variabile) linked to Euribor.

Question 10

Can I share my calculation?

Accepted Answer

“Share link” copies a URL with all your values. Anyone who opens it sees the calculator pre-filled.

Question 11

Is my data saved?

Accepted Answer

Your inputs and calculations stay exclusively in your browser and are not transmitted. Only if you accept in the cookie banner is Google Analytics loaded for usage statistics – see the privacy policy for details.

Question 12

Is this calculator free?

Accepted Answer

Yes, completely free and without registration.

Question 13

What does leverage mean?

Accepted Answer

The leverage shows what percentage of your extra payment you get back as interest savings. At 80% you save €0.80 for every euro paid early. Above 100% you save more interest than you pay in early.

AlpFinanz

Your loan,
calculated clearly.

How the calculator works

Frequently asked questions

Contact

AlpFinanz

Your loan,calculated clearly.

How the calculator works

Frequently asked questions

Contact

Your loan,
calculated clearly.