The question everybody asks on a first viewing is always the same: how much would it be a month? It can be answered in ten seconds, because a mortgage payment is not a sales estimate: it is a closed formula with three inputs. Below is the calculator, and after it, what sits behind the number, which is what really decides whether a purchase turns out well or expensive.
Monthly mortgage payment calculator
French amortisation system with a constant payment. Enter your figures and press Calculate.
Indicative calculation using the French amortisation system with a constant payment. It excludes arrangement fees, tied insurance products and purchase costs. On a variable rate the payment is recalculated at each review. Amounts are shown in Spanish format: 1.234,56 €.
How the French amortisation system works (and why it matters)
Almost every Spanish mortgage is repaid under the French system: you always pay the same amount, but the internal split changes. The formula is c = P · i / (1 − (1 + i)−n), where P is the capital, i the monthly rate (the annual rate divided by 12 and by 100) and n the number of payments. On €200,000 over 25 years at 3%, the payment works out at €948.42 a month, across 300 instalments, with total interest of roughly €84,527.
The practical consequence is that at the beginning almost the entire payment is interest. In that same example, the first instalment carries €500 of interest and only €448 of capital; by year fifteen the ratio has flipped. That is why making an early repayment in the first years saves far more than doing it at the end, and why stretching the term lowers the payment but makes the whole operation disproportionately more expensive.
Fixed or variable in 2026: what Euribor says
The September 2026 picture is uncomfortable for anyone who was waiting for cheap money. The twelve-month Euribor is moving around 3.1% — it printed 3.109% on 4 September and the provisional monthly average is close to 3.08% — and the European Central Bank raised its three official rates by 0.25 points on 10 September 2026, taking the deposit facility to 2.50% from the 16th. The ECB's own projections build in an average three-month Euribor of 3% for 2027 and 2028, so nobody is pricing in a quick fall.
On the other side, the average fixed rate on the mortgages currently offered is around 2.97% according to September 2026 market studies, with the best offers between 2.10% and 2.65% nominal through brokers and a handful of lenders. On variable deals the usual margin runs from Euribor + 0.50% to Euribor + 1.00%, most commonly around +0.60% / +0.75% if you take out the tied products.
Run the numbers in the calculator: a variable deal at Euribor 3.109% + 0.60% gives 3.709%, against a fixed rate of 2.97%. On today's figures the fixed rate wins comfortably and it also removes the sleepless nights. A variable rate only makes sense if you are convinced Euribor will fall steadily and if your finances can absorb, without drama, a payment two points above the current one.
The 80% loan and the money the mortgage does not cover
What a Spanish bank normally lends is 80% of the lower of the valuation and the purchase price. You put in the remaining 20%, and on top of that come the taxes and costs, which are not covered by the mortgage. In the Valencian Community transfer tax (ITP) is 9% on resale homes since 1 June 2026 (stamp duty, AJD, applies to new builds at 1.4%), and to that you add notary, land registry, gestoría and valuation fees.
| Item | On a €200,000 home | Who pays |
|---|---|---|
| Deposit (20%) | €40,000 | Buyer |
| ITP 9% (resale) | €18,000 | Buyer |
| Notary, registry and gestoría | €1,500 – €2,500 | Buyer |
| Valuation | €300 – €500 | Buyer |
| Stamp duty on the mortgage deed | — | Lender |
A realistic total: around €60,000 in savings for a €200,000 purchase. It is all broken down in our guide to the costs of buying a home in the Valencian Community, with updated figures and the cases that qualify for a reduced rate.
The mistake of looking only at the payment
The monthly payment is what gets negotiated at the branch, but it is not what determines the cost of the loan. Three common traps:
- Stretching the term so it fits. That same €200,000 loan at 3% falls from €948.42 to €843.21 a month if you go from 25 to 30 years, but interest rises from €84,527 to €103,555. Almost €20,000 more to shave €105 off the payment.
- Looking at the nominal rate instead of the APR. The nominal rate is pure interest; the APR takes in fees and the cost of tied products. Two mortgages with the same nominal rate can be half a point apart on APR.
- Not testing scenarios. That is why the calculator includes a sensitivity table: if your finances cannot take the "+1 point" row, the loan is too big for your income, not for the bank's.
The prudent benchmark lenders use is that all your monthly loan payments together should not exceed 35% of the household's net income. With a €948 payment, that means around €2,700 net a month. If the sums only work by stretching the term, the answer is not a longer term: it is a lower price.
Once you know your ceiling, the next step is to look properly: browse the homes available in Alicante and Benidorm, compare with our guide on renting or buying in Alicante in 2026 and, if you are also selling your current home to fund the deposit, start with the free online valuation so you know the real figure you are playing with.
Frequently asked questions
How is a Spanish mortgage payment calculated?
With the formula c = P × i / (1 − (1 + i) to the power of −n), where P is the outstanding capital, i is the monthly interest rate (the annual rate divided by 12 and by 100) and n is the total number of payments. The resulting payment is constant: what changes every month is the internal split between interest and capital, heavy on interest at the start and heavy on capital at the end.
Is a fixed or a variable mortgage better in 2026?
It depends on your appetite for risk. In September 2026 the twelve-month Euribor is hovering around 3.1% and the ECB raised rates again on 10 September, while the average fixed rate on offer is close to 3%. On those numbers a fixed rate is currently as good as or better than a variable one and it removes the uncertainty; a variable rate only pays off if you believe Euribor will fall steadily over the coming years.
How much cash do I need to buy in Alicante?
As a rule of thumb, between 30% and 35% of the price. Spanish banks normally lend 80% of the valuation or purchase price, so you put down 20%, and on top of that you pay 9% transfer tax in the Valencian Community plus notary, land registry and gestoría fees. For a 200,000 euro home that means roughly 60,000 euros in deposit, tax and costs.
What happens to my payment if Euribor rises by one point?
On a 200,000 euro loan over 25 years, moving from 3% to 4% raises the payment from about 948 to about 1,056 euros a month, more than 100 euros extra every month and roughly 32,000 euros more in interest over the life of the loan. That is why you should always test your payment one and two points higher before signing a variable rate.