How to calculate a mortgage payment in Poland
- 1.
Enter the amount
Type the loan amount, or switch to "Price and down payment" and enter the property price and your down payment in percent. The calculator then works out the loan and the LTV.
- 2.
Set the term and rate
Choose the number of years and the annual interest rate. For a variable rate, add the reference rate (WIBOR or its successor) to the bank margin.
- 3.
Pick the installment type
Choose equal (annuity) or decreasing installments and, optionally, add the bank arrangement fee as a percentage.
- 4.
Review the results
Read the monthly payment, total interest, total cost and APRC, then open the schedule to see the balance after each year or month.
How the monthly payment is calculated
Equal installments (raty równe) keep the same payment for the whole term. The formula is P = L × r / (1 − (1 + r)−n), where L is the loan amount, r the annual rate divided by 12 and n the number of monthly payments. At the start most of each payment is interest; the principal share grows over time.
Decreasing installments (raty malejące) repay the same slice of principal every month (L / n) plus interest on the remaining balance, so the first payment is the highest and each one after is a little lower.
Example: PLN 600,000 flat, 20% down, 25 years at 7%
A 20% down payment of PLN 120,000 leaves a loan of PLN 480,000 (LTV 80%).
| Installments | First payment | Total interest | Total repaid |
|---|---|---|---|
| Equal | PLN 3,392.54 | about PLN 537,762 | about PLN 1,017,762 |
| Decreasing | PLN 4,400.00 | about PLN 421,400 | about PLN 901,400 |
Decreasing installments start about PLN 1,000 higher but save over PLN 116,000 in interest. A higher first payment also means you need higher borrowing capacity to qualify.
Term and interest rate: what moves the payment
| PLN 400,000, equal installments | Monthly payment | Total interest |
|---|---|---|
| 25 years, 6.5% | PLN 2,700.83 | about PLN 410,248 |
| 25 years, 7% | PLN 2,827.12 | about PLN 448,133 |
| 30 years, 7% | PLN 2,661.21 | about PLN 558,036 |
Stretching the term from 25 to 30 years lowers the payment by only about PLN 166 a month but adds roughly PLN 110,000 of interest. A rate change of half a percentage point moves the payment by about PLN 126.
Most Polish mortgages have a variable rate: a reference rate plus a fixed bank margin. For years the benchmark was WIBOR (3M or 6M); it is being phased out in favour of an overnight index (originally called WIRON, now POLSTR). Many banks also offer a rate fixed for 5-10 years (okresowo stała stopa), after which it switches to variable or a new fixed period. Enter the rate from your offer. The calculator assumes it stays the same for the whole term.
Down payment, LTV, fees and APRC
- Down payment (wkład własny): under the KNF Recommendation S standard, banks lend up to 80% of the property value, so you bring 20%. Many lenders accept 10% with extra security, typically low down payment insurance. LTV = loan / property value.
- Arrangement fee (prowizja): often 0-2% of the loan. Adding it to the loan saves cash today, but you pay interest on it: on PLN 400,000 at 7% over 25 years, a 2% fee financed by the loan raises the payment by about PLN 57.
- APRC (RRSO): the annual percentage rate of charge expresses all costs as one yearly rate. At 7% with no fee it is about 7.23% (the effect of monthly payments); with a 2% fee paid upfront it rises to about 7.47%. Banks also include insurance, valuation and account fees, so the APRC in a real offer is usually higher.
Not sure how much a bank will lend you? Estimate it first with the borrowing capacity calculator.
Mortgages in Poland for foreigners
Foreigners can get a mortgage from a Polish bank, but requirements vary. Banks generally look for a residence card (karta pobytu) or EU registration, a PESEL number, a Polish bank account, a stable employment history in Poland and income paid in PLN. Borrowing in PLN while earning in another currency exposes you to exchange rate risk, and many banks will not lend in that case at all.
Citizens of the EU, EEA and Switzerland buy property on the same terms as Poles. Other foreigners can usually buy a flat (lokal mieszkalny) without a permit, while buying a house with land generally requires a permit from the Ministry of the Interior. Budget for extra purchase costs too: notary fees, court fees and, on the secondary market, 2% PCC tax. Once you have the loan, the loan overpayment calculator shows how much interest early repayments can save.
Frequently asked questions
What is the monthly payment on a PLN 400,000 mortgage over 25 years?
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At 7% with equal installments it is PLN 2,827.12 a month. With decreasing installments the first payment is PLN 3,666.66 and the last about PLN 1,342.
Equal or decreasing installments - which is better?
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Decreasing installments cost less in total interest but start higher, so you need more income to qualify. Equal installments are predictable and lower at the start, but more expensive overall.
What interest rate should I enter for a variable-rate mortgage?
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The current reference rate (WIBOR 3M or 6M, or POLSTR for newer loans) plus the bank margin from your offer. For a fixed-rate period, enter the fixed rate from the offer.
How much down payment do I need in Poland?
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The standard is 20% of the property value. Some banks accept 10% if you buy low down payment insurance or provide other security.
What is the difference between the interest rate and the APRC (RRSO)?
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The nominal rate covers only interest. The APRC includes all costs of the loan (fees, insurance, charges) and their timing, so it is higher and better for comparing offers.
Can a foreigner get a mortgage in Poland?
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Yes, but banks usually expect a residence card or EU registration, a PESEL number, a work history in Poland and income in PLN. Rules differ between banks, so compare several offers.
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