Italy Mortgage Calculator
Published: 2 November 2026 · Updated: 2 November 2026
Borrowing €240,000 for an Italian home at 3.75% over 25 years costs about €1,234 a month, with total interest of about €130,174. Enter your own price, deposit, rate and term below.
Compare TAEG, not TAN. Italian banks advertise the nominal rate, but the all-in annual cost — fees, insurance and charges — is what decides which offer is actually cheapest. This calculator shows the payment at your TAN and reminds you to check the TAEG before signing.
Researched by MixKhazana Team · Last updated 2 November 2026 · Data: Standard amortisation formula; rates are user-entered (illustrative 3.75% default) — Italian mortgage pricing (TAN/TAEG, Euribor linkage) per Bank of Italy consumer guidance
How to use
- Enter the home price in euros.
- Set your down payment as a percentage — 20% is typical.
- Enter the annual rate (TAN) from your bank's offer.
- Pick the loan term and click the button for your monthly payment and total interest.
How it works
An Italian mortgage (mutuo) repays a loan in equal monthly instalments, each split between interest and principal. The payment formula is M = P × r × (1+r)n / ((1+r)n − 1), where P is the loan amount, r is the monthly rate (annual TAN divided by 12) and n is the number of monthly payments. Early payments are mostly interest; the principal share grows as the balance falls. That is why the total interest on a 25-year loan is so large: at 3.75% on €240,000, interest alone is about €130,174, more than half the amount borrowed.
Two Italian terms decide the real cost. TAN is the nominal rate that sets your monthly payment. TAEG adds every fee, insurance premium and charge into one annual percentage, and it is the only fair way to compare two banks. A variable loan (tasso variabile) usually follows Euribor plus a bank spread, so its payment rises and falls with European rates, while a fixed loan (tasso fisso) holds the payment steady. If you are comparing countries, see our Spain mortgage calculator, France mortgage calculator and Netherlands mortgage calculator for the same maths with local terms.
Worked example
Giulia and Marco buy a €300,000 apartment in Milan with a 20% deposit and a 25-year loan at 3.75%:
- Deposit: 20% × €300,000 = €60,000
- Loan: €300,000 − €60,000 = €240,000
- Monthly rate: 3.75% ÷ 12 = 0.3125%; payments: 25 × 12 = 300
- Monthly payment: €240,000 × 0.003125 × (1.003125)300 / ((1.003125)300 − 1) = €1,234/month
- Total paid: €1,234 × 300 = €370,174
- Total interest: €370,174 − €240,000 = €130,174
Shortening the term to 20 years would raise the payment to about €1,423 a month but cut total interest to roughly €101,500 — a saving of about €28,600 for a payment that is €189 higher. That trade-off is the single most valuable comparison this calculator makes.
Figures used here
| Figure | Value in the example |
|---|---|
| Home price | €300,000 |
| Deposit (20%) | €60,000 |
| Loan amount | €240,000 |
| Illustrative TAN (user-adjustable) | 3.75% |
| Term | 25 years (300 payments) |
| Monthly payment / total interest | €1,234 / €130,174 |
Frequently asked questions
How much is the monthly payment on a €240,000 mortgage in Italy?
At a 3.75% annual rate over 25 years, a €240,000 Italian mortgage costs about €1,234 a month, with total interest of about €130,174 over the life of the loan. Change the rate or term in the calculator above to match your bank's offer.
What is the difference between TAN and TAEG in Italy?
TAN (Tasso Annuo Nominale) is the nominal interest rate used to compute your monthly payment. TAEG (Tasso Annuo Effettivo Globale) is the all-in annual cost including fees, insurance and charges, so TAEG is always higher than TAN. Compare TAEG, not TAN, when choosing between banks.
Should I choose a fixed or variable mortgage in Italy?
A fixed-rate mortgage (tasso fisso) locks your payment for the whole term, which suits buyers who want certainty. A variable mortgage (tasso variabile) usually tracks Euribor plus a bank spread, so payments move with European rates. The right choice depends on your risk tolerance and how long you plan to keep the loan.
How much deposit do I need for a mortgage in Italy?
Most Italian banks lend up to 80% of the property's value, so a 20% deposit is the common starting point. Some banks lend more to first-time buyers, and Italy's state-backed guarantee fund (Fondo di garanzia prima casa) can help eligible buyers under 36 with a higher loan-to-value. A larger deposit usually earns a lower rate.
What extra costs come with buying a home in Italy?
Beyond the mortgage payment, budget for notary fees, registration and cadastral taxes, agency commission, the bank's appraisal and set-up fees, and insurance. These purchase costs commonly add several percent of the price on top of the deposit, so the calculator's payment is not your full cash requirement.
Can foreigners get a mortgage in Italy?
Yes. Non-residents can get Italian mortgages, though banks usually ask for more documentation, proof of income, and sometimes a larger deposit than for residents. Rates and maximum loan-to-value vary by bank and by whether you have Italian tax residency.
How does the loan term change my payment?
A longer term cuts the monthly payment but raises total interest sharply. On a €240,000 loan at 3.75%, stretching from 20 to 30 years lowers the payment by roughly €200 a month but adds roughly €60,000 of interest. Use the term slider in the calculator to see the trade-off for your own numbers.