Hipoteca ClaraEarly repayment calculator
Compare the two ways of repaying a mortgage early in Spain, lowering the payment or shortening the term, and see how much interest you save.
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How to use this calculator
Enter what you still owe (the outstanding balance, not the original loan), the current interest rate, the remaining term and the amount you want to repay. If your contract sets a fee, enter it in the fee field: the saving you see is net, with the fee already deducted.
If you do not know what fee you could be charged, the "Maximum legal fee" section shows the limit set by Law 5/2019 for your type of mortgage and the years since signing, and you can apply it with one click.
The two options
- Lower the payment: the term stays the same and the monthly payment goes down. It frees up money every month.
- Shorten the term: the payment stays the same and you finish paying earlier. This is the option that saves the most interest.
The calculator shows both at once and marks the one that saves more. The guide on lowering the payment or shortening the term explains when the other one may suit you.
How the saving is calculated
It compares the total interest you still had to pay with what you would pay after repaying, for each of the two options. The fee, calculated on the amount repaid, is deducted from the difference. A constant interest rate is assumed for the remaining term, so on a variable mortgage the result is an estimate.
What to bear in mind
Repaying early reduces the total cost of the loan, but before doing it keep a liquidity cushion and check the fee and the prior notice period in your contract. This calculator does not include insurance or other tied products, whose treatment when you repay depends on each contract.
Frequently asked questions
Is it better to lower the payment or shorten the term?
Shortening the term saves more interest because you finish paying earlier. Lowering the payment saves less but frees up money every month. It depends on your situation; compare them in the early repayment calculator.
How much can they charge me for repaying early?
Law 5/2019 sets maximums. On variable mortgages, the contract sets either 0.25% of the amount repaid during the first 3 years or 0.15% during the first 5. On fixed mortgages, 2% during the first 10 years and 1.5% afterwards. These are limits: your contract may set less or nothing. More in the early repayment guide.
How do I request an early repayment?
You tell the bank, which may require up to 1 month's notice and must give you the information needed to assess the operation within a maximum of 3 business days. When you repay, ask in writing for the new amortization schedule.
What does the calculation include and not include?
It includes capital and interest. It does not include insurance, fees or tied products the bank links to the mortgage, nor the discounts that might lower the rate. For a full comparison, ask the bank for the information sheet and look at the TAE.