How is an Italian mortgage rata calculated?

The monthly rata uses the standard amortising formula M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the loan, r is the monthly rate and n is the number of months. For a tasso variabile mutuo the rate is Euribor 6M plus the bank's spread; for a tasso fisso it is the IRS swap rate plus spread.

How much deposit do Italian banks require?

Most Italian banks lend up to 80% of the property value (loan-to-value), so you usually need at least a 20% deposit plus purchase taxes and notaio fees. First-time buyers under 36 can sometimes access state-backed guarantees (Fondo Garanzia Prima Casa) covering up to 80–100% LTV.

What is TAEG and why does it matter?

TAEG (Tasso Annuo Effettivo Globale) is the all-in annual cost of the loan including interest, mandatory insurance and arrangement fees. Italian law requires lenders to disclose it so you can compare offers fairly; the headline TAN rate alone understates the true cost.

What income do Italian banks expect for a mortgage?

As a rule of thumb the rata should not exceed about one third of net monthly household income. Banks stress-test the loan against this ratio, so a higher rate or shorter term that pushes the rata above a third of income usually means a smaller approved loan.

Does this calculator store my data?

No. Every figure is computed locally in your browser and nothing is uploaded, so you can model your purchase privately.

Italy Mortgage Calculator

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This Italy mortgage calculator models an Italian home loan (mutuo) the way a bank does: a fixed amortising monthly rata based on your rate and term, checked against the two norms that decide whether the loan is approved — the 80% loan-to-value limit and the rule that the rata should stay within about one third of net income.

How it works

The capital-and-interest payment uses the standard amortising-loan formula:

M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. An Italian tasso variabile mutuo prices off Euribor 6M plus the bank’s spread; a tasso fisso prices off the IRS swap rate plus spread. Enter whichever combined annual rate your offer quotes.

The tool then applies the Italian affordability checks. The loan-to-value (LTV) is loan ÷ property price; banks normally cap this at 80%. The rata-to-income ratio is monthly rata ÷ net monthly income, and lenders prefer it at or below roughly one third.

Example

A EUR 250,000 home with a EUR 50,000 deposit gives a EUR 200,000 mutuo — an 80% LTV, right at the usual ceiling. At 3.8% over 25 years the rata is about EUR 1,033/month and total interest over the life of the loan is roughly EUR 110,000. On a net monthly income of EUR 3,000 that rata is about 34% of income — just over the one-third guideline, so the bank might ask for a longer term or a larger deposit.

Notes

Purchase taxes (imposta di registro), notaio fees and any compulsory insurance sit on top of the price — model the taxes with an Italy stamp duty tool. The headline TAN rate understates the real cost; always compare offers on TAEG, which Italian law requires lenders to disclose. This calculator is an estimate, not a lending decision.