Mortgage Calculator Iceland
Enter the purchase price, the down payment, the interest rate and the loan term to see the monthly payment, the total interest and what you need when you buy. Under «More options» you can try an extra payment.
More options
General values (Iceland). They don't account for regional rules or other costs that may apply. Check them with your lender or advisor.
Rate discounts for bank products
Enter the rate above with every discount applied. Here, each product the bank asks for: how much it lowers the rate and what it costs a year. The discount is assumed to last the whole term.
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Count as cost what you pay extra for having it with the bank: if the same insurance costs ISK 15,000 elsewhere and the bank's costs ISK 25,000, that's ISK 10,000. If the premium rises over the years, as life insurance does, enter the average.
Enter the price, down payment, interest rate and term.
The payment is principal plus interest: it doesn't include insurance, fees or property taxes.
Yearly amortization schedule
Enter the price, down payment, interest rate and term.
Results are estimates. Solvemis accepts no responsibility for the results obtained or for how they are used. Always double-check the result and talk to a qualified professional before making decisions.
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How it works
How to use it
- Enter the purchase price and the down payment.
- Add the annual interest rate and the loan term in years.
- Open «More options» to change the loan type or the buying costs, or to add an extra payment.
- Look at the payment, the interest, what you need when you buy and the repayment plan.
How it is calculated
The monthly rate is the annual rate divided by 12, and the loan is calculated month by month, as in the bank's repayment plan. If the rate changes after some years, the payment is recalculated in the year it changes, on the outstanding balance and the months left. Extra payments are booked at the end of the chosen year. Buying costs, share of income and loan-to-value are reference values for Iceland that you can change. With rate discounts, the rate you enter is the one you pay with every product; without each one, the rate goes up by its discount (also after a rate change) and the extra interest is compared with its cost over the years the mortgage lasts.
Payment = L · i / (1 − (1 + i)^−n) · L = loan, i = annual rate ÷ 12, n = months
Sources
- Hvernig virkar greiðslubyrðarhlutfall þegar ég sæki um íbúðalán? — Landsbankinn
- Lög um stimpilgjald nr. 138/2013 — Althingi
About this calculator
Equal payments or equal instalments
With equal payments the monthly payment is the same the whole time; at the start most of it goes on interest and the principal falls slowly. With equal instalments you pay the same part of the principal every month: the first payment is the highest, then they fall and the total interest is lower. The chart shows each year’s interest in blue.
Extra payment: shorter term or lower payment
With an extra payment you choose what should go down. A shorter term keeps the payment unchanged and usually saves the most interest. A lower payment keeps the term unchanged.
What the reference values for Iceland do not cover
The Central Bank sets caps on the loan-to-value ratio (80%, 90% for first-time buyers) and the debt service burden (35% of disposable income, 40% for first-time buyers). The calculator assumes a non-indexed loan: indexation on indexed loans is not calculated. The 0.8% buying cost is stamp duty (0.4% for first-time buyers). Check the values with your bank or an adviser.
Frequently asked questions
Equal payments or equal instalments?
With equal payments you pay the same amount every month, but at the start most of it goes on interest. With equal instalments you pay the same part of the principal every month: the first payment is higher, then they fall and the total interest is lower.
Should an extra payment shorten the term or lower the payment?
A shorter term usually saves the most interest. A lower payment eases your monthly outgoings. The calculator shows both with your numbers.
What is not included in the payment?
The payment here is repayment and interest. Indexation on indexed loans, fees, insurance and property charges come on top.
Is it worth taking the bank's products to get a lower rate?
It depends on what they cost. Under «Rate discounts for bank products», in «More options», enter the discounted rate (with every product) as the interest rate and, for each product, such as insurance, a card or having your salary paid into the account, how much it lowers the rate and what it costs a year. You'll see how much interest each one saves and whether it's worth it; if you don't know the cost, how much it could cost a year and still pay off. Count as cost only what you pay extra for having it with the bank: if the same insurance is cheaper elsewhere, the difference.
Updated 20 October 2026
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