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Calculadora Capital

Early Mortgage Repayment Calculator: Portugal

Repaying your mortgage early (amortização antecipada) means using cash you have to pay down the outstanding capital and so pay less interest. After you repay, the bank lets you choose between two options: keep the same payment and finish the loan sooner (shorten the term), or keep the term and pay less each month (lower the payment). This calculator shows, for each option, how much interest you save, already net of the early-repayment fee.

The TAN is your loan's rate (Euribor + spread). By law the early-repayment fee is capped at 0.5% of the capital repaid on variable-rate loans and 2% on fixed-rate ones, and it may be temporarily waived. Check the current figure on your loan's information sheet.

Maximum interest saved
€12,697
Keeping the payment and shortening the term, the option that saves the most.

Option 1: Shorten the term

Keep the €600.75 payment and finish the loan sooner.

Interest saved
€12,697
Net saving (after the fee)
€12,647
New term
21 years and 10 months
Time saved
3 years and 2 months

Option 2: Lower the payment

Keep the remaining term and pay less each month.

Interest saved
€5,019
Net saving (after the fee)
€4,969
New payment
€550.69/mo
Payment reduction
€50.06/mo

Early-repayment fee: €50.00 (0.5% of the amount repaid). The net saving already nets off this fee.

How these figures are worked out

Current payment€600.75
Interest left if you don't repay early (remaining term)€60,224
Outstanding balance after repaying€110,000
Interest left: shortening the term€47,527
Interest left: lowering the payment€55,206

Educational estimate, not financial advice. It assumes the TAN stays constant to the end of the term (on a variable rate the payment moves with Euribor) and a single early repayment. Confirm the fee and the figures on your loan's information sheet.

Video: how to use the calculator

Shorten the term or lower the payment

When you repay part of the loan, the outstanding capital drops. From there you choose one of two things. Shorten the term: keep the same payment and the loan ends sooner, this saves the most interest, because the repaid money stops earning interest for the whole remaining term. Lower the payment: keep the term and pay a smaller instalment, it eases the monthly budget but saves less interest than shortening the term.

How the saving is calculated

A loan instalment is an annuity (French system): payment = capital × i / (1 − (1 + i)^−n), with i = TAN/12 and n the number of months. The calculator first works out the interest you would pay to the end of the term without repaying. Then it recomputes interest for each scenario: for "shorten the term" it keeps the payment and solves how many months are left for the new capital; for "lower the payment" it keeps the months and reduces the payment. The saving is the difference in interest between not repaying and each option.

The early-repayment fee

Repaying early has a cost: the early-repayment fee. By law it is capped at 0.5% of the capital repaid on variable-rate loans and 2% on fixed-rate ones, and there has been a temporary exemption for early repayment of variable-rate own-permanent-home credit. The calculator uses the fee you enter and shows the net saving (after the fee). Check the fee currently in force on your loan's information sheet.

Worked example

You owe €120,000 at a 3.5% TAN with 25 years to go, a payment of about €600.75. Without repaying, you would pay close to €60,224 in interest to the end. If you repay €10,000 early (0.5% fee, i.e. €50): keeping the payment, the loan ends ~38 months sooner and you save about €12,697 in interest (€12,647 net); lowering the payment, it falls to ~€550.69/mo and you save about €5,019 in interest (€4,969 net). Shortening the term saves more than double.

Frequently asked questions

Is it worth repaying a mortgage early?
In interest terms it almost always is: every euro repaid stops earning interest to the end of the term, and the fee (at most 0.5% on a variable rate) is usually far smaller than the interest saved. The real question is liquidity and alternatives: it makes sense if you do not need that cash and the interest saved beats what you would earn investing it at comparable safety. This calculator shows the saving in euros for each option.
Is it better to shorten the term or lower the payment?
Shortening the term saves more interest, because the repaid capital stops earning interest for longer. Lowering the payment saves less but reduces what you pay each month, useful if you want to ease the budget. The calculator shows both scenarios side by side so you can compare.
What is the early-repayment fee?
The fee is capped by law at 0.5% of the capital repaid on variable-rate loans and 2% on fixed-rate ones. There has been a temporary exemption for early repayment of variable-rate own-permanent-home credit. Always confirm the fee in force on your loan information sheet.
How is the interest saving calculated?
The calculator compares the interest you would pay to the end of the term without repaying against the interest in each scenario after repaying. For "shorten the term" the payment stays and the loan ends sooner; for "lower the payment" the term stays and the payment drops. The difference in interest is the saving, less the fee.
Are the figures exact?
They are an estimate. The calculator assumes the TAN stays constant to the end of the term (on a variable-rate loan the payment changes when Euribor rises or falls) and a single repayment. For a variable rate it is a good approximation as of today. Always confirm the figures and the fee with your bank.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-01