Loan Installment Calculator
Calculate mortgage or cash loan installments. Equal and decreasing installments with full repayment schedule.
Loan parameters
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Equal vs decreasing installments — which to choose?
Equal installments (annuity)
Each installment is the same throughout the loan period. Initially, a larger portion of the installment goes to interest; over time, the capital share grows. Total interest cost is higher than with decreasing installments, but the fixed amount makes it easier to plan your household budget.
Decreasing installments (capital)
The capital portion is fixed, while interest decreases as the loan is repaid. The first installment is the highest, the last is the lowest. Total interest cost is lower, but the initial budget burden is higher — which affects the calculated creditworthiness.
What to watch out for?
In addition to the nominal interest rate, check the APR (Annual Percentage Rate), which includes commission, insurance and other costs. When comparing bank offers, APR gives a more complete picture of the loan cost than interest rate alone.
Current loan interest rates 2026
Mortgage interest rates in Poland depend on the NBP reference rate and the bank's margin. At the beginning of 2026, the reference rate is 5.75%, and a typical bank margin is 1.5–2.5%, resulting in interest rates of around 7–8.5%. Cash loans have higher interest rates — usually 8–15% depending on the amount and period.
Loans in Poland — what every borrower should know
Taking out a mortgage or cash loan is one of the biggest financial commitments in most people's lives. Understanding how installments are calculated, what drives interest rates, and where the hidden costs lie can save you tens of thousands of zlotys over the life of your loan. Here is a comprehensive overview of key loan concepts relevant to borrowers in Poland in 2026.
Equal vs Decreasing Installments
With equal (annuity) installments, you pay the same total amount each month throughout the entire loan period. The internal split changes over time: early installments are mostly interest, while later ones are mostly principal repayment. With decreasing (capital) installments, the principal portion is constant each month, but the interest portion shrinks as the outstanding balance decreases, so total monthly payments start high and gradually fall. For a 300,000 PLN mortgage at 7.5% over 25 years, equal installments are approximately 2,216 PLN throughout, while decreasing installments start at around 2,875 PLN and drop to about 1,008 PLN by the end. The total interest paid with decreasing installments is roughly 15-20% less, but the initial higher payments reduce your borrowing capacity.
How WIBOR Affects Your Rate
Most Polish mortgages use a variable interest rate composed of WIBOR (Warsaw Interbank Offered Rate) plus a fixed bank margin. WIBOR 3M or WIBOR 6M are the most common reference rates, updated quarterly or semi-annually. In early 2026, WIBOR 3M stands at approximately 5.75%, reflecting the NBP reference rate. When WIBOR rises, your installment increases; when it falls, your installment decreases. A 1 percentage point change in WIBOR on a 300,000 PLN loan over 25 years changes the monthly installment by approximately 180-200 PLN. Fixed-rate mortgages are available from some Polish banks (typically fixed for 5-7 years), offering predictability at a slightly higher initial rate. Consider your risk tolerance when choosing between variable and fixed rates.
Total Cost of Credit
The total cost of credit extends well beyond interest payments. It includes: the bank's origination commission (typically 0-3% of the loan amount), mandatory life insurance and property insurance, appraisal fees (300-800 PLN), notary fees for the mortgage deed, and potentially bridging insurance if the mortgage is registered before the land registry entry. Polish law requires banks to disclose the APR (RRSO — Rzeczywista Roczna Stopa Oprocentowania), which captures all these costs as a single annualized percentage. For a 300,000 PLN mortgage at 7.5% nominal rate over 25 years, the total repayment can reach 640,000-680,000 PLN — more than double the borrowed amount. Always compare APR rather than nominal interest rates when evaluating offers from different banks.
Overpaying Your Loan — When It Pays Off
Early loan repayment can significantly reduce total interest costs, especially in the early years when the outstanding balance is highest. Under Polish consumer credit law, you have the right to overpay at any time. For consumer loans, the bank may charge a maximum fee of 1% of the overpaid amount (if more than 12 months remain). For mortgages, early repayment terms are defined in your contract. You can choose to reduce the remaining loan term (keeping installments the same) or reduce the installment amount (keeping the term the same). Reducing the term saves more on total interest. For example, overpaying 50,000 PLN on a 300,000 PLN mortgage at 7.5% over 25 years can save approximately 80,000-100,000 PLN in total interest and shorten the loan by 4-5 years.
What to Watch When Taking a Loan
Before signing a loan agreement, scrutinize these key elements: the APR (RRSO) rather than just the headline interest rate, the total amount repayable over the full loan term, any cross-selling requirements (banks often offer lower margins in exchange for buying their insurance or opening accounts), the flexibility of early repayment terms, and the consequences of missed payments. For mortgages, pay attention to the maximum LTV (Loan-to-Value) ratio — in 2026, banks require a minimum 10-20% down payment. Also verify whether the interest rate is truly variable or has a floor/cap, and understand the installment recalculation schedule. Finally, check your BIK (Credit Information Bureau) report before applying — errors or forgotten small debts can unexpectedly reduce your creditworthiness.
Frequently Asked Questions
How is a loan installment calculated?
Loan installments depend on amount, interest rate, and repayment period. For equal (annuity) installments, the PMT formula is used. Our calculator does this automatically — just enter your loan parameters.
Equal vs decreasing installments — which to choose?
Equal installments provide a fixed, predictable monthly amount. Decreasing installments are higher initially but the total interest cost is lower, saving about 5-15% in interest costs.
What are loan interest rates in 2026?
Mortgage interest rates in Poland in 2026 are approximately 7-9% (WIBOR 3M + bank margin). Consumer loans have higher rates: 10-18%. The exact rate depends on the bank and your creditworthiness.
What is APR (RRSO)?
APR (Annual Percentage Rate, or RRSO in Polish) is the total cost of a loan expressed as a percentage, including interest, commissions, and other fees. APR allows you to compare offers from different banks.
Can I overpay my loan early?
Yes, since 2012 you have the right to early repayment of consumer loans. The bank may charge a fee (max 1% of the overpaid amount within 12 months). Overpayment reduces interest or shortens the repayment period.