Tool description

The Euribor Amortization Calculator is a specialized financial tool designed for calculating loan amortization schedules with Euribor-based interest rates. It provides detailed monthly payment breakdowns showing how principal and interest are distributed throughout the loan term, making it ideal for European mortgages and loans. The calculator shows the complete amortization schedule to help you understand the full cost of your loan.

Features

  • Euribor + Margin Calculation: Enter current Euribor rate and bank margin to calculate effective interest rate
  • Detailed Amortization Schedule: View month-by-month breakdown showing principal, interest, and remaining balance
  • Fixed Payment Display: See your consistent monthly payment amount throughout the loan term
  • Comprehensive Summary: Display monthly payment, effective interest rate, total payment, total interest, and principal
  • Euro-Denominated: Designed specifically for European loans in euros
  • Real-Time Calculations: Instant updates as you modify loan parameters
  • Full Term Overview: See complete payment schedule from first to last payment

Use Cases

  • Euribor-Based Mortgages: Plan for European variable-rate mortgages tied to Euribor
  • Loan Planning: Understand the full cost and payment structure of your loan
  • Financial Budgeting: Budget for monthly mortgage payments and see how much interest you'll pay
  • Loan Comparison: Compare different Euribor rates and margins to find the best option
  • Refinancing Analysis: Evaluate whether current Euribor rates make refinancing attractive
  • Payment Schedule Review: See how each payment is split between principal and interest
  • Long-Term Planning: View the full amortization schedule to plan for the entire loan term
  • Interest Cost Analysis: Understand total interest costs over the life of the loan

What is Euribor?

Euribor (Euro Interbank Offered Rate) is the average interest rate at which European banks lend to each other. It serves as a reference rate for many variable-rate loans and mortgages in Europe. Banks typically charge Euribor plus a margin to borrowers. Common Euribor terms include 1-month, 3-month, 6-month, and 12-month rates.

Conversion Details

The calculator uses the standard annuity payment formula:

Monthly Payment = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]

Where:

  • r = (Euribor Rate + Margin) / 12 / 100 (monthly interest rate)
  • n = Total number of months (years × 12)

Each monthly payment consists of:

  • Interest Payment = Remaining Balance × Monthly Interest Rate
  • Principal Payment = Monthly Payment - Interest Payment
  • New Balance = Previous Balance - Principal Payment

This creates a detailed amortization schedule showing how your loan is paid down over time.