How to calculate mortgage repayments and a purchase budget in Poland

Price, down payment and financed principal

Subtract the down payment from the price. With a PLN 500,000 price and PLN 100,000 down payment, the loan excluding fees is PLN 400,000. Financing the upfront fee adds it to principal and interest-bearing debt. Paying it separately requires initial cash but does not increase the loan balance.

Enter other known cash-paid purchase costs without counting the upfront fee twice. The calculator does not determine taxes or notarial fees. Initial cash combines down payment, entered purchase costs and a separately paid fee; the total budget adds all model repayments. Check the underlying transaction documents for the applicable costs.

Read LTV without assuming mortgage approval

The model divides financed principal by the entered price and multiplies by 100%. PLN 400,000 against a PLN 500,000 price gives 80%. A financed PLN 1,000 fee increases the balance to PLN 401,000 and the ratio to 80.20%. This is a mathematical ratio to your entered price.

The bank may use a different valuation and its own affordability assessment. Down payment or LTV alone does not establish approval or product availability. Defaults are neither statutory requirements nor current offers. If the bank valuation differs from the price, ask the lender how that affects its conditions.

Equal and decreasing payments in a monthly model

Equal payments use the annuity formula P × r / (1 − (1 + r)^−n), where r is the annual nominal percentage divided by 1,200, n the month count and P financed principal. At 0%, the loan component is P/n. Each month separates principal repayment from interest.

Decreasing payments use a fixed principal component of P/n in this model; interest declines with the balance. Amounts round to cents and the final payment clears the remaining balance. The monthly model does not reproduce a bank’s daily-interest calendar. Check the first payment, final payment and full schedule, not only the headline result.

Source: Annuity-payment model — project methodology; UOKiK — mortgage payments, interest rates and simulation limitations.

Zero-interest example: budget and financed fee

A PLN 500,000 price, PLN 100,000 down payment, 0%, 200 months and no fees give PLN 2,000.00 payments. Total repayment is PLN 400,000 and the purchase-and-repayment budget PLN 500,000. Zero interest is an educational arithmetic example, not a suggestion that such a mortgage is available.

Adding a financed PLN 1,000 fee with the same 0% and 200 months gives PLN 2,005.00 payments, PLN 401,000 repayments and a PLN 501,000 budget. Initial cash stays PLN 100,000 if no other purchase costs are entered. At a positive rate, financing the fee also increases interest.

Rate comparison is a scenario, not a forecast

Enter the full annual nominal rate from the documents, not only WIBOR/POLSTR or the margin. The default is illustrative and reference rates are not fetched. The alternative rate recalculates the same principal, term and fees throughout the model. The first-payment difference does not forecast the payment after a fixed-rate period ends.

Keep the other inputs unchanged to isolate the rate’s effect. For temporarily fixed or variable-rate borrowing, the future path is unknown. UOKiK describes limitations of such simulations. Contractual schedules can also differ because of dates, rounding or cost treatment; ask the bank to explain the difference.

Source: UOKiK — mortgage payments, interest rates and simulation limitations.

Model cost, APR/RRSO and the next checks

The sum of interest, upfront fee and entered recurring fees is the financing cost in this scenario. It is not APR/RRSO, which uses defined costs and cash-flow timing. Blank cost fields do not prove an offer is fee-free. Check insurance and other conditions in the lender’s required offer information.

Use the separate overpayment calculator after checking the contract. This model does not cover grace periods, staged draws, payment holidays or early-repayment cost refunds. Calculations are local and amounts are not saved to analytics. Keep the result with its assumptions and compare it against the lender’s contractual schedule.

Source: UOKiK — consumer credit, fees and APR/RRSO.

Frequently asked questions

Calculators covered by this guide