How is an Italian personal loan repayment calculated?

A prestito personale uses the standard amortising formula, M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the amount borrowed, r is the monthly rate (annual TAN ÷ 12) and n is the number of months. Each fixed rata pays interest on the outstanding balance plus a slice of capital.

What is the difference between TAN and TAEG?

TAN (Tasso Annuo Nominale) is the nominal interest rate used to compute the repayment. TAEG (Tasso Annuo Effettivo Globale) is the all-in annual cost including fees and compulsory charges, and is the figure to compare between offers. This tool computes the repayment from the TAN; ask each lender for its TAEG.

What is the tasso soglia usura?

Banca d'Italia publishes a quarterly tasso soglia (usury threshold) for each category of credit. A loan whose TAEG exceeds the threshold for its category is usurious and unlawful. Personal-loan thresholds typically sit in the high teens to low twenties percent, so a rate near or above 20% should be questioned.

Can I repay an Italian personal loan early?

Yes. EU consumer-credit rules let you repay a prestito personale early, with the lender entitled to limited compensation (generally up to 1% of the amount repaid early, or 0.5% if under a year remains). Early repayment cuts the remaining interest you would otherwise pay.

Does this calculator store my data?

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

Italy Personal Loan Calculator

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This Italy personal loan calculator models the monthly repayment (rata) on a prestito personale at the rate your lender quotes, shows the total interest and total repaid, and flags rates that look high against the tasso soglia usura cap.

How it works

The fixed monthly rata uses the standard amortising-loan formula:

M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the amount borrowed, r is the monthly rate (annual TAN ÷ 12 ÷ 100) and n is the number of months. Each rata covers the interest on the current balance plus a slice of capital, so as the balance falls the interest portion shrinks and the capital portion grows.

Total interest is rata × months − principal. The headline rate here is the TAN; the figure to compare between lenders is the all-in TAEG, which also includes fees. The tool warns if the rate approaches the 20% region where personal-loan usura thresholds typically sit.

Example

Borrowing EUR 12,000 over 48 months at a 9% TAN gives a rata of about EUR 299/month. Total repaid is roughly EUR 14,340, so total interest is about EUR 2,340. Stretching the same loan to 72 months lowers the rata to about EUR 217 but raises total interest to roughly EUR 3,600 — a longer term means smaller payments but more interest overall.

Notes

Compare offers on TAEG, not TAN, since arrangement fees, insurance and stamp costs can add materially to the real cost. Check that the TAEG sits below the Banca d’Italia quarterly tasso soglia for consumer credit. This is an estimate, not a credit offer.