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Fixed-rate mortgage simulator: monthly payment and total cost
A fixed-rate amortising loan is the benchmark property financing: constant monthly payment, rate known in advance, no surprises. But reducing it to mere debt is a beginner's mistake.
Principal + interest + insurance, over the full loan term
Cumulative interest and insurance, so you can weigh up term and rate with full knowledge of the facts
The rate never moves: your repayment is locked in while everything else changes
The simulator
Simulate your fixed-rate loan
The simulator calculates the monthly payment and total cost based on the amount, rate, term and insurance. Your data is neither stored nor transmitted.
Fixed-rate loan simulator
Calculate your monthly payment, the interest cost and the total cost of a fixed-rate amortising loan.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why a fixed rate remains the bedrock of wealth financing
A fixed rate lacks the flattering reputation of sophisticated structures, and that is precisely its strength. Where a Lombard loan or a bullet loan addresses specific situations, the fixed-rate amortising loan is the universal tool: it turns a monthly savings capacity into an asset owned immediately. Over a long horizon, inflation erodes the real value of your monthly payments while the property holds or increases its value. You repay, in euros that are worth less and less, a debt taken out in today's euros.
It is this mechanism that makes credit a wealth-building tool rather than a burden. Borrowing at a fixed rate means locking in the cost of money for twenty or twenty-five years while your income, your rents and your wealth keep growing. A cost locked in on one side, open potential for appreciation on the other.
Both components of the loan still need to be optimised. The nominal rate gets all the borrowers' attention; insurance, which can account for a third of the total cost on a long loan, is the great forgotten item. The Lemoine Act, which now allows loan insurance to be switched at any time and at no cost, has opened up savings that most borrowers never seize.
What the calculation shows
The levers your banker does not spontaneously put on the table
Extending the term reduces the monthly payment but sharply increases the total cost: over 25 years rather than 20, you pay interest for five more years on capital that is repaid slowly at first. Conversely, shortening the term raises the monthly payment but can save tens of thousands of euros in interest. The right trade-off cannot be read off the bank's rate grid: it depends on your debt ratio, your holding horizon and your remaining savings capacity. The simulator makes this compromise clear in a few seconds.
On a long loan, borrower insurance can represent up to a third of the cost of the credit. The Lemoine Act allows you to change it at any time, at no cost and with no penalty: switching to an external policy with equivalent cover often saves several thousand euros, particularly for borrowers who are young, non-smokers and in good health. The bank lending to you has no interest in offering you this change: it is a significant source of margin for it. Comparing offers is a matter for an external adviser.
Keeping a low-cost fixed-rate loan rather than repaying it early is often the right call: if your invested savings earn more than your loan rate, repaying amounts to destroying value. The loan then becomes leverage you maintain deliberately, not a burden you are trying to shed. This trade-off between repaying and investing is rarely raised at a bank counter, which reasons product by product rather than at the level of your overall wealth.
Case study
Case study: Antoine, 41, head of an SME in Nantes
Antoine is financing the purchase of his main residence with a €300,000 fixed-rate amortising loan over 20 years at 3.5%. He had initially taken out his bank's group insurance at 0.34%. Here is the effect of switching to external insurance with equivalent cover, brought down to 0.12% thanks to his profile:
| Indicator | Bank insurance (0.34%) | External insurance (0.12%) | Difference |
|---|---|---|---|
| Monthly repayment (insurance included) | ≈ €1,825 | ≈ €1,759 | −€66/month |
| Interest cost | ≈ €117,800 | ≈ €117,800 | — |
| Total insurance cost | ≈ €20,400 | ≈ €7,200 | -€13,200 |
| Total cost of the loan | ≈ €138,200 | ≈ €125,000 | ≈ -13,200 € |
The €13,200 saving owes nothing to any renegotiation of the nominal rate or to any extra saving effort: it comes solely from the Lemoine Act and loan insurance properly put out to competition. It is a simple optimisation to put in place on a property loan.
Beyond insurance, Antoine's real wealth question lies elsewhere: should he maximise his deposit to reduce the loan, or keep this cash to invest it? At a 3.5% borrowing cost, the trade-off calls for a calculation, not a reflex.
In practice
A loan is not something to endure but to structure
This simulator gives an order of magnitude for your monthly payment and total cost. The value is created upstream: sizing the term to your real horizon, putting the insurance out to tender under the Lemoine Act, weighing the deposit against investing your cash, and fitting the loan with the rest of your wealth. The same purchase can be financed in several ways, with very different consequences.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. Open architecture allows us to study the appropriate financing — repayment, interest-only or Lombard depending on the objective — then to put you in touch with our partner banks. Let's book an appointment to study your project and put figures on the appropriate structure.
Frequently asked questions
What clients ask us.
Should I favour the shortest term to pay less interest?
Not necessarily. A short term reduces the total interest cost but increases the monthly payment and ties up more of your borrowing capacity. If your invested savings earn more than your loan rate, it may make more sense to extend the term slightly and invest the difference. The right trade-off depends on your debt ratio, your horizon and your overall wealth strategy, not just the displayed interest cost.
What does the Lemoine Act change for my loan insurance?
Since the Lemoine Act, you can change your loan insurance at any time, free of charge and without penalty, provided you present at least equivalent cover. On a long loan, insurance can account for up to a third of the cost of the credit: a well-negotiated switch to an external policy often saves several thousand euros, particularly for young borrowers in good health. It is an often overlooked lever.
Is it better to repay my loan early or to invest my savings?
It all depends on the ratio between your loan rate and the return on your investments. If your savings earn more than the cost of your loan, keeping the loan and investing the cash creates value: the loan becomes leverage. Conversely, on a high-rate loan, early repayment may make sense. This trade-off is assessed at the level of your overall wealth, not product by product.
Is a fixed rate always preferable to a variable rate?
A fixed rate offers absolute security: your monthly payment never moves, whatever happens in the markets. It is the benchmark choice for long-term financing without flexibility. A capped variable rate can make sense in specific situations — high fixed rates, planned early repayment — but introduces some variability. This choice depends on your horizon and your risk tolerance.
What is the difference between Balmont Conseil and my bank adviser?
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. Where a bank adviser places their network's loan and insurance, we study your financing, compare loan insurance offers from among our partner insurers and put you in touch with our partner banks.
