A €200,000 loan at 6.5% over 25 years: about €1,350 a month, before insurance and fees.
Each percentage point of interest is worth about €120–130 a month on a €200,000 loan over 25 years.
Going from 25 to 30 years at 6.5% saves about €86 a month but adds about €50,000 in total interest.
Under BNR rules, payments on all loans are capped at 40% of net income in lei, and 20% in foreign currency.
The annual percentage rate includes insurance and fees beyond the nominal rate. Compare on it.
Mortgage payment calculation in Romania: the short answer
The monthly payment on a Romanian mortgage depends on three inputs: the loan amount, the annual interest rate and the number of years. A loan worth €200,000 (in lei) at 6.5% over 25 years costs about €1,350 a month before insurance. The bank will only approve it if all your loan payments together stay below 40% of your net income on a lei loan, under the rules of the National Bank of Romania (BNR).
That number is where every financing conversation I have with investors begins. Not the headline rate, not the loan-to-value, but the monthly payment and the income it requires. In this article you get the formula, a payment table, and what the bank adds on top of principal and interest.
The formula: how to calculate the monthly payment
Most Romanian mortgages use an equal-instalment schedule ("rate egale", an annuity). The formula:
Monthly payment = P × r ÷ (1 − (1 + r)^−n)
- P is the loan amount.
- r is the annual rate divided by 12. At 6.5%: 0.065 ÷ 12 = 0.00542.
- n is the number of payments. Over 25 years: 300.
Any spreadsheet does this with the PMT function. The result covers principal and interest only.
Payment table: a €200,000 loan
The table uses the formula above, equal instalments, on a €200,000 loan. On a lei loan the amount and the payments are in lei: at the BNR rate of 30 September 2026, about 5.28 lei per euro, that is a loan of roughly 1,056,000 lei. (Illustration only.)
| Annual rate | 25 years | 30 years |
|---|---|---|
| 5.5% | about €1,228 | about €1,136 |
| 6.5% | about €1,350 | about €1,264 |
| 7.5% | about €1,478 | about €1,398 |
Two things stand out. Each percentage point of interest is worth about €120–130 a month. And extra years cut the payment less than you might think: going from 25 to 30 years at 6.5% saves about €86 a month but adds about €50,000 in total interest (about €255,000 instead of about €205,000).
Equal instalments or decreasing instalments ("rate descrescătoare")
Romanian banks also offer a schedule with equal principal repayments, "rate descrescătoare": the principal part is fixed, interest is charged on the remaining balance, and the payment falls over time.
On the same €200,000 loan at 6.5% over 25 years:
- First payment about €1,750, instead of about €1,350.
- Last payment about €670.
- Total interest about €163,000, instead of about €205,000.
The trade-off: a higher first payment, so a higher income requirement at the start. If your income allows it, you pay less interest overall.
Your income sets the loan size, not the property value.
The rate: fixed, variable, and what IRCC is
On variable-rate lei loans, the rate is an index plus the bank's margin ("marjă"). Since 2019 the index for consumer loans has been IRCC, published quarterly by the BNR. From 1 October 2026 it stands at 5.57%. Assume a 2% margin (for illustration): a 7.57% rate and a payment of about €1,487 over 25 years.
Many banks offer a fixed rate for the first three to five years, then switch to index plus margin. Ask to see the payment in both phases, not only during the fixed period. We explain the indices in depth in our article on IRCC and ROBOR.
What else goes into the monthly cost
The formula covers principal and interest. In practice the monthly charge and the yearly cost include more layers:
- Mandatory home insurance (PAD) under Law 260/2008, plus the property insurance the bank requires, with the bank as beneficiary.
- Life insurance, which many banks require or use to price the rate.
- Fees for account or loan administration, depending on the bank.
- Exchange-rate differences, if your income is in another currency than the loan.
That is why the number to compare between banks is the DAE (dobânda anuală efectivă), the annual percentage rate the bank must disclose. It includes costs beyond the nominal rate.
How much income the bank will require: the DSTI cap
Under BNR Regulation 17/2012, your total monthly payments on all loans are capped at 40% of net income on a lei loan, and at 20% on a foreign-currency loan. For a loan to buy a first home, the cap rises by 5 percentage points.
In numbers: a payment of about €1,350 requires net income of at least about €3,375 a month on a lei loan. Your income sets the loan size, not the property value. We compare lei and euro loans in our article on euro vs lei mortgages.
Frequently asked questions
How do I calculate a Romanian mortgage payment without a bank calculator?
In a spreadsheet, with the PMT function: the annual rate divided by 12, the number of months and the loan amount. The result is principal and interest in equal instalments. Add insurance and fees to reach the real cost.
How much is a €200,000 mortgage per month in Romania?
At 6.5%: about €1,350 a month over 25 years, or about €1,264 over 30 years, before insurance and fees. On a lei loan the payment is in lei, based on the lei amount fixed on the day of the loan.
What is the difference between "rate egale" and "rate descrescătoare"?
With "rate egale" the payment stays the same for the whole term (an annuity). With "rate descrescătoare" the principal part is fixed and the payment falls over time. The second starts higher but saves interest overall.
What is the DAE and why does it matter?
The DAE is the annual percentage rate, which includes the loan's costs beyond the nominal interest. It is the right figure for comparing offers from different banks.
Can I repay the mortgage early?
Yes. On variable-rate loans, early repayment is generally free of commission. During a fixed-rate period the bank may charge a capped compensation. Ask for the terms in writing before you sign.
The bottom line
Working out the payment is the first thing to do, even before choosing a property. It shows what you will pay, how much income the bank will require, and what changes if rates move by a point.
For the full process, from approval in principle to the notary, see our step-by-step Romanian mortgage guide. For the equity you need to bring, see our article on the down payment in Romania.
If you would like to go through your own numbers, book a 30-minute call with me. We will work out the payment, the income required and the scenarios together.
Moti Azulay, Compass Group Romania
Sources and data: National Bank of Romania (BNR) (IRCC, exchange rate) · BNR Regulation 17/2012, Romanian legislation portal (DSTI) · Romanian legislation portal (Law 260/2008, mandatory insurance) · Investropa (January 2026, rate ranges). The calculations in this article are formula-based illustrations.
This article is general information only and is not legal, tax or financial advice. Rates and terms are as of October 2026 and are set by each bank according to the borrower's profile. Before any transaction, consult local professionals.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
