Tax Tool

Loans

Mortgage tool for Norway

A home loan in Norway is usually an annuity repaid monthly. Set the loan, the rate you want to test, and the term. Twenty-five or thirty years are common planning terms, but the right term is the one in the offer.

Quick math0

Use this for quick arithmetic, percentages, or to check figures while filling in the main tool, without leaving the page.

Your figures

Estimate

20,871 NOK per month

Monthly payment
20,871 NOK
Total paid
6,261,166 NOK
Total interest
2,761,166 NOK
Number of payments
300

How this breaks down

Principal
3,500,000 NOK
Interest rate
5.20%
Interest in the first year
180,345 NOK
Principal repaid in the first year
70,102 NOK

Annuity estimate with a fixed rate and no fees. A bank offer can include establishment fees, a different rate, and a credit check.

How to use this tool

  1. Use Mortgage Tool Norway for the question described above, and check that the inputs match your records and time period.
  2. Enter mortgage amount.
  3. Enter annual interest rate (Replace this with the rate in your offer.).
  4. Enter term.
  5. Change mortgage amount, annual interest rate, term to compare scenarios, then check the units in the result.

Worked example with the prefilled values

This example shows how Mortgage Tool Norway uses its starting values. Change the calculator inputs to estimate your own situation.

Mortgage amount
3500000 NOK
Annual interest rate
5.2 %
Term
25 years

20,871 NOK per month

  • Monthly payment20,871 NOK
  • Total paid6,261,166 NOK
  • Total interest2,761,166 NOK
  • Number of payments300

Annuity estimate with a fixed rate and no fees. A bank offer can include establishment fees, a different rate, and a credit check.

Formula and calculation logic

Monthly payment = P × r(1 + r)^n ÷ ((1 + r)^n − 1); if r = 0, payment = P ÷ n

P = principal, r = annual interest rate ÷ 12, n = rounded number of monthly payments; total interest = payment × n − P

P is the loan principal. r is the monthly interest rate as a decimal, and n is the number of monthly payments.

Each payment covers that month's interest on the remaining balance. Whatever is left reduces the principal.

A lower rate or a shorter term cuts the total interest. A shorter term raises the monthly payment.

Interest you pay on a mortgage can be deductible against ordinary income. This page does not subtract that tax effect. You can type the interest into the tax tool as a deduction after you know the year's interest.

Assumptions

  • The example rate is not a market quote. Replace it with the rate you were offered.
  • Fees, a joint borrower, and an interest-only period are not included.
  • The loan amount should be the amount you borrow, not the price of the home.

Published sources

Further reading for checking current rules and information. These links are not live inputs to the tool.

Questions about this tool

How much of the home price can the loan be?

A common lending limit is 85% of the home's value, so 15% is equity. The affordability tool applies that limit together with the five-times-income debt rule.

Why is so much of the first year interest?

Interest is charged on the whole remaining balance. Early in a 25-year loan that balance is still close to the amount you borrowed.

Do Norwegian mortgages use this annuity method?

The annuity is the most common. A serial loan, where the principal payment stays fixed and the total payment falls, is a different product and is not calculated here.