Loan calculator
Here you can calculate the monthly cost, total cost, interest and fees.
Use our loan calculator to get a simple overview of what a loan could cost you per month. Enter the loan amount, interest rate, repayment period and fees, and you’ll get an estimate of the term amount, effective interest rate and total cost.
The calculator is well suited for those who want to calculate mortgage, house loan, refinancing or other
loans where you want a better overview before you apply.
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The calculator provides an estimate. Eiendomsfinans can help you obtain quotes from several banks so that you get an assessment based on your finances.
You get to explain your case and discuss solutions there and then. A lot can be resolved quickly over a pleasant phone call. Call 32 88 00 00 or fill in the contact form.
How to use the loan calculator
To calculate what the loan might cost, fill in:
- Loan amount – How much you want to borrow.
- Repayment period – How many years you want to take to pay off the loan.
- Nominal interest rate – The interest rate before fees and other costs.
- Establishment fee – One-off cost for setting up the loan.
- Term fee – Fee payable for each installment.
Once you’ve entered the figures, the calculator will show you roughly how much you have to pay per month, the total cost of the loan and the effective interest rate.
The calculation is indicative. The actual interest rate and loan cost depends on the bank’s assessment of your finances, type of loan, collateral, income, debt and desired repayment period.
What affects how much the loan costs?
Several factors determine how expensive the loan will be:
- Loan amount – The more you borrow, the more you normally pay in interest over time.
- Pension – Interest rates have a major impact on monthly costs. Even small changes in interest rates can make a big difference, especially on large loans such as mortgages.
- Repayment period – A long repayment period often results in a lower monthly cost, but a higher total interest cost. Shorter repayment periods result in higher monthly costs, but can reduce the total cost.
- Establishment fee –
Set-up fees and term fees affect the effective interest rate and the total cost.
- Fees – Fee payable for each term.
- Type of loan – A mortgage normally has a lower interest rate than an unsecured loan because the bank has a mortgage on the home. Consumer loans and other unsecured loans often have higher interest rates.
- Collateral – If the loan is secured by a home, cabin or other property, the bank can often offer better terms than for unsecured loans.
What does the loan calculator show?
The loan calculator gives you an overview of the most important costs of the loan:
Term amount: The installment amount is what you pay each month or each installment. The amount usually consists of interest, installments and any fees.
Total amount: The total amount shows how much you will repay in total over the entire repayment period. This includes the loan amount, interest and fees.
Cost: The cost shows what the loan costs over and above the amount you borrow. This is the sum of interest and fees.
Effective interest rate: The effective interest rate shows the real cost of the loan, because it includes both nominal interest and fees. Therefore, you should always look at the effective interest rate when comparing loans.
Nominal interest rate and
effective interest rate
When using a loan calculator, you should distinguish between nominal and effective interest.
Nominal interest rate
is the actual interest rate on the loan before fees.
Effective interest rate
includes both nominal interest and costs such as set-up fees and term fees. That’s why the effective interest rate is the best number to use when comparing loans. Two loans can have the same nominal interest rate but different effective interest rates if the fees are different.
Annuity loan or serial loan?
Most mortgages are granted as annuity loans, but it’s useful to understand the difference between annuity loans and serial loans.
Annuity loan
With an annuity loan, you pay the same installment amount throughout the repayment period, as long as the interest rate remains unchanged. In the beginning, you pay more interest and less installments. Gradually, you pay more installments and less interest. This is often suitable for those who want predictable monthly costs.
Serial loans
With a serial loan, you pay the same amount of installments throughout the period, but the interest cost decreases as the loan becomes smaller. This means that the installment amount is highest at the start and lower towards the end.
This can result in a lower total interest cost, but requires you to tolerate a higher monthly cost in the beginning.
Loan calculator for home and house
Many people use a loan calculator to calculate the cost of a home or house before applying for a loan. Then you can get an idea of how much a mortgage might cost each month, and how the interest rate and repayment period affect your finances.
Example:
A higher loan amount means a higher monthly cost. A longer repayment period can result in a lower monthly installment, but often a higher total interest cost over time. A shorter repayment period can result in a higher monthly cost, but a lower total cost.
When buying a home, it’s also important to remember that the loan calculator alone does not determine how much you can borrow. The bank assesses your income, debt, equity, ability to pay and security in the home, among other things.
A loan calculator can show what a loan costs, but it doesn’t always provide a complete answer to how much you can actually borrow. In order to determine your borrowing capacity, the bank must assess your entire financial situation.
When it comes to mortgages, the bank usually looks at:
- Revenue
- Existing debt
- Equity
- Fixed expenses
- Number of persons in the household
- Ability to pay at higher interest rates
- The value of the property to be pledged as security
As a general rule, your total debt may not exceed five times your gross annual income. For mortgages, the main rule is also that you must have at least 10% equity, as the bank can normally finance up to 90% of the value of the home.
If you want to know more precisely how much you can borrow, you should submit an application or apply for a financing certificate. You will then receive a specific assessment based on your finances.
Not sure how much you can borrow?
Eiendomsfinans helps you get an overview and obtain offers from several banks.
Here's what you should do after calculating the loan
Once you’ve used the loan calculator, you should proceed with three simple steps:
1. Assess whether the monthly cost fits your finances
Look at what you actually have left after fixed expenses. Remember that interest rates can change.
2. Compare multiple banks
Interest rates and terms vary between banks. That’s why it can be worthwhile to get several offers.
3. Get a specific assessment
A calculator only provides an estimate. An advisor can assess your entire finances and help you find the right solution.
At Eiendomsfinans, you’ll be assisted by a dedicated advisor who will obtain offers from several banks on your behalf. The service is free and non-binding for you.
Get help finding the right loan
We compare offers from several banks and help you find a solution that suits your finances.
Loan calculator for refinancing
You can also use the loan calculator if you are considering refinancing. Then you can compare what you’re paying today with what a new loan might cost.
This is especially useful if you want to:
- Collect multiple loans
- Get a lower interest rate
- Reduce your monthly cost
- Move loan to another bank
- Refinance expensive small loans or credit card debt
- Increase your mortgage to get better conditions
When refinancing, it’s important to look at the total cost, not just the monthly repayment amount. A lower monthly cost may seem positive, but if the repayment period is extended a lot, the total cost may be higher.
Frequently asked questions about loan calculator
What is a loan calculator?
A loan calculator is a tool that calculates what a loan might cost based on the loan amount, interest rate, repayment period and fees. It gives you an estimate of the monthly cost, effective interest rate and total cost.
How does a loan calculator work?
You enter how much you want to borrow, the desired repayment period, nominal interest rate and any fees. The calculator then works out the approximate monthly payments and the total cost of the loan.
Can I use the mortgage calculator for home loans?
Yes, the calculator can be used to calculate mortgages, home loans and other loans. When buying a home, you must also take into account equity, costs and the bank’s assessment of your ability to pay.
How much can I borrow for housing?
How much you can borrow depends, among other things, on your income, debt, equity and ability to pay. As a general rule, your total debt may not exceed five times your gross annual income, and for mortgages you must normally have at least 10% equity.
What does effective interest rate mean?
The effective interest rate is the total interest cost including fees. It therefore gives a more accurate picture of what the loan actually costs than nominal interest alone.
What's the difference between an annuity loan and a serial loan?
With an annuity loan, you pay the same installment amount every month as long as the interest rate remains unchanged. With a serial loan, you pay fixed installments, but the installment amount becomes lower as interest rates fall.
Can the loan calculator show me exactly what my interest rate will be?
No, it doesn’t. The calculator provides an estimate. The actual interest rate is determined by the bank after an individual assessment of your finances, loan type, security and risk.
Should I choose a short or long repayment period?
A short repayment period often results in higher monthly costs, but lower total interest costs. A long repayment period results in lower monthly costs, but can make the loan more expensive overall.
Can I use the loan calculator when refinancing?
Answer. You can use the calculator to compare your current loan with a new loan and see if refinancing can result in a lower monthly cost or a better overview.
What do I do after using the loan calculator?
The next step is to get a concrete assessment. Eiendomsfinans can help you compare offers from several banks and find a solution that suits your finances.