Mortgage calculator

How the monthly payment is calculated

With an annuity schedule the payment is the same every month and combines interest with a repayment of principal. Early payments are mostly interest, later ones mostly principal. The formula:

M = P · r(1 + r)ⁿ / ((1 + r)ⁿ − 1)

M is the monthly payment, P the loan amount, r the monthly rate (annual rate divided by 12) and n the number of payments.

With equal principal you repay the same share of the loan (P / n) every month plus interest on the remaining balance. The first payment is the largest and payments fall over time, so total interest is lower than with an annuity. The calculator shows both.

Euribor and the bank margin

Most Estonian home loans have a floating rate: the loan rate is Euribor plus the bank's margin. Euribor is the interbank rate of the euro area and moves with the market; the margin is the bank's markup, agreed in the loan contract.

The rate is reset according to the Euribor term in your contract (for example 6 months), so the monthly payment can change during the term. 6-month Euribor was 2,92 % in Sep 2026. The average new home-loan rate in Estonia was 4,26 % in Aug 2026 and already includes banks' margins. Try different rates in the calculator to see how a change in Euribor affects the payment.

How much can you borrow

Eesti Pank's housing-loan requirements set ceilings on the loan amount. A bank may exceed them only for a limited share of new loans (up to 15 % of its quarterly volume):

• The loan can be up to 85 % of the collateral's value, so your own contribution is at least 15 %.
• With a state guarantee, up to 90 % of the collateral's value (own contribution at least 10 %).
• All loan payments together can be up to 50 % of net income. Affordability is tested at the higher of your contract rate and 6 %.
• The loan term is up to 30 years.

The “How much can I borrow?” tab of the calculator applies these rules to your income and savings and shows the maximum loan and home price.

EIS home-loan guarantee

The EIS (formerly KredEx) guarantee replaces part of the own contribution: the down payment can start at 10 %, or 5 % for large families. It is available to young families, young specialists, buyers of energy-efficient homes, large families and veterans who do not already own a home.

The guarantee covers up to 24 % of the collateral's value, capped at €20,000 (€50,000 for an energy-efficient home). For a large family it covers up to 40 %, capped at €50,000. The fee is a one-off 3 % of the guaranteed amount, 2 % for large families.

Terms as of October 2026, source: eis.ee. Check them before you apply.

One-off costs of buying

Besides the price and your down payment, budget for the notary fee (calculated from the transaction value by the table in the Notary Fees Act, Notari tasu seadus, plus VAT), the state fee for the land-register entries, the bank's contract fee (typically 0.4–0.9 % of the loan) and a valuation report (about 150 €).

The calculator estimates these costs from the price and loan amount you enter.

Running costs after you buy

The loan payment is only part of what a home costs each month. Add utilities (heating, water, electricity), the apartment association (HOA) fee, internet and home insurance. Enter them in the calculator to see the total monthly cost.

The same monthly-cost calculator is on every listing page, based on that listing's own utility and HOA figures. Find a home among the properties for sale.

Is home-loan interest tax-deductible?

No. From 2024, home-loan interest can no longer be deducted when calculating income tax (source: emta.ee).

Mortgage calculator FAQ

How much can I borrow for a home in Estonia?

The loan amount is limited by your own contribution and your income. Under Eesti Pank's requirements the loan can be up to 85 % of the collateral's value (90 % with a state guarantee), all loan payments together up to 50 % of net income, and the term up to 30 years. Affordability is tested at a rate of at least 6 %. These are ceilings: banks also deduct household living costs and other obligations. The “How much can I borrow?” tab of the calculator works out the ceiling from your figures.

How big a down payment do I need?

Usually at least 15 % of the price. For the EIS guarantee's target groups at least 10 %, and 5 % for large families. Buying costs (notary fee, state fee, bank contract fee) are usually paid on top of the down payment.

What is the EIS guarantee and what does it cost?

The EIS (formerly KredEx) guarantee replaces part of the own contribution and is meant for specific groups: young families, young specialists, buyers of energy-efficient homes, large families and veterans who do not already own a home. A down payment from 10 % is enough, 5 % for large families. It covers up to 24 % of the collateral's value, capped at €20,000 (€50,000 for an energy-efficient home; up to 40 % and €50,000 for a large family). The fee is a one-off 3 % of the guaranteed amount, 2 % for large families. Terms: eis.ee.

What is Euribor and how does it affect my payment?

Euribor is the interbank rate of the euro area and the basis of most Estonian home-loan rates: loan rate = Euribor + the bank's margin. 6-month Euribor was 2,92 % (Sep 2026, ECB). When Euribor rises, the monthly payment grows after the next rate reset. In the calculator you can change the rate and compare results.

Annuity or equal principal: which is cheaper?

Equal principal has lower total interest because the debt falls faster, but the first payments are higher. An annuity payment stays the same, which makes budgeting simpler. The calculator shows the payment and total interest for both schedules.

How much does a notary cost when buying a home?

The notary fee depends on the transaction value and is calculated by the table in the Notary Fees Act (Notari tasu seadus), plus VAT. A state fee for the land-register entries is paid on top. The calculator estimates both from the price you enter.

Can I get income tax back on home-loan interest?

No. From 2024, home-loan interest can no longer be deducted when calculating income tax (emta.ee).

Does the calculator include monthly running costs?

Yes. Besides the loan payment you can enter utilities, the apartment association fee, internet and insurance, and see the total monthly cost of the home. Every listing page has the same calculator with that home's own cost figures.