What is the difference between TAN and TAEG in Portugal?

TAN (Taxa Anual Nominal) is the nominal annual interest rate used to compute the monthly payment. TAEG (Taxa Anual de Encargos Efetiva Global) is the all-in annual cost including fees, insurance and commissions. Banco de Portugal requires lenders to disclose the TAEG so borrowers can compare loans fairly.

How is the monthly payment calculated?

It uses the standard fixed-instalment amortisation formula. The monthly rate is the annual TAN divided by 12, and the payment is amount x r / (1 - (1+r)^-n) where n is the number of months. Each instalment pays interest first, then reduces the principal.

What interest rate is normal for a personal loan in Portugal?

Crédito pessoal rates in Portugal commonly fall between 5% and 20% TAEG. The exact rate depends on the loan purpose, amount, term, your income and credit history. Banco de Portugal publishes maximum usury rates each quarter that lenders cannot exceed.

Does this include fees and insurance?

The calculator models the interest portion from the rate you enter. If you input the TAEG it approximates the all-in cost; if you input only the TAN, add any commissions or payment-protection insurance separately to see the true total cost of credit.

Can I repay a Portuguese loan early?

Yes. Portuguese law caps early-repayment penalties at 0.5% of the amount repaid for variable-rate loans with more than a year left, and 0.25% with less than a year left. Early repayment reduces the remaining interest, which this fixed schedule does not automatically model.

Portugal Personal Loan Calculator

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The Portugal Personal Loan Calculator works out the monthly repayment, total interest and full amortisation schedule for a Portuguese crédito pessoal. Enter how much you want to borrow, the term, and the interest rate, and the tool applies the standard fixed-instalment formula used by Portuguese banks under Banco de Portugal disclosure rules.

How it works

A personal loan with a fixed rate is repaid in equal monthly instalments. The payment is found with the annuity (amortisation) formula:

payment = P x r / (1 - (1 + r)^-n)

where P is the loan amount, r is the monthly interest rate (TAN / 12 / 100), and n is the number of monthly payments. Each month the bank first charges interest on the outstanding balance (balance x r); the rest of the instalment reduces the principal. As the balance falls, the interest share shrinks and the principal share grows — the schedule the tool prints month by month.

Monthly rate r = TAN / 12. Each instalment = interest on the balance + principal repayment.

Remember the distinction Portuguese lenders must publish: the TAN drives the payment maths, while the TAEG is the all-in annual cost including fees and insurance. Compare loans on TAEG.

Worked example

Borrow €10,000 over 48 months at a 8% TAN:

Monthly rate r = 8 / 12 / 100 = 0.667%.
Monthly payment ≈ €244.
Total repaid ≈ €11,718, of which about €1,718 is interest.

Change the amount, term or rate and the payment, interest and schedule update instantly. Everything is computed in your browser — no figures are uploaded or stored.