Question 1

How is a mortgage monthly payment calculated in Portugal?

Accepted Answer

Portuguese home loans use standard amortization. The monthly payment is worked out from the loan amount, the annual interest rate divided by 12, and the number of monthly instalments (years × 12). Each payment covers the interest due plus a slice of the capital, so the balance falls to zero at the end of the term. The formula is payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan, r the monthly rate and n the number of months.

Question 2

What do Euribor and spread mean on a Portuguese mortgage?

Accepted Answer

Most Portuguese mortgages are variable-rate: the interest you pay is Euribor (a market reference rate, usually the 6- or 12-month index) plus a fixed spread set by the bank. Euribor moves with the market and is reviewed periodically, while the spread stays the same for the life of the loan and depends on your profile, the loan-to-value (LTV) and any products you take with the bank. Your total rate is simply Euribor + spread.

Mortgage Calculator 2026: home loan repayments in Portugal