Fixed-rate mortgage calculator: monthly payment and total cost

Simulate your fixed-rate loan

The simulator calculates the monthly payment and total cost based on the amount, rate, duration, and insurance. Your data is neither stored nor transmitted.

Why fixed interest rates remain the cornerstone of wealth management

Fixed-rate loans don't have the same flattering reputation as sophisticated financing arrangements, and that's precisely their strength. While Lombard loans or bullet loans are suited to specific situations, fixed-rate amortizing loans are the universal tool: they transform monthly savings into an asset held immediately. Over the long term, inflation erodes the real value of your monthly payments, while the asset itself maintains or even increases in value. You repay in euros that are worth less and less than a debt incurred in today's euros.

It is this mechanism that makes credit a wealth-building tool, not a burden. Borrowing at a fixed rate means locking in the cost of money for twenty or twenty-five years while your income, rental income, and assets continue to grow. No other instrument offers this asymmetry: a fixed cost on one hand, and open potential for appreciation on the other.

However, both aspects of the loan must be optimized. The nominal interest rate is the focus of most borrowers' attention; insurance, which can represent a third of the total cost on a long-term loan, is often overlooked. The Lemoine Law, which now allows borrowers to change their loan insurance at any time and without penalty, has created a potential for savings that most borrowers never take advantage of.

The levers that your banker doesn't spontaneously put on the table

The duration matters as much as the rate

Extending the loan term reduces the monthly payment but significantly increases the total cost: with a 25-year term instead of 20, you pay interest for five more years on capital that is initially amortized slowly. Conversely, shortening the term increases the monthly payment but can save tens of thousands of euros in interest. The right balance isn't determined by the bank's rates: it depends on your debt-to-income ratio, your investment horizon, and your remaining savings capacity. The simulator makes this compromise clear in just a few seconds.

Borrower's insurance, the hidden third party of the cost

On a long-term loan, borrower's insurance can represent up to a third of the total cost of the loan. The Lemoine Law allows you to change your insurance at any time, without fees or penalties: switching to a different insurer with equivalent coverage often saves several thousand euros, especially for young, non-smoking, and healthy borrowers. The bank lending to you has no incentive to suggest this change: it's one of their most profitable areas for profit. Comparing offers requires external advice.

Credit as leverage, not as a constraint

Keeping a low-cost fixed-rate loan rather than paying it off early is often the smart move: if your savings are earning more than your loan's interest rate, paying it off means destroying value. The loan then becomes leverage that you intentionally maintain, not a burden you're trying to get rid of. This trade-off between paying off and investing is rarely addressed by a bank teller, who tends to think about individual products rather than your overall assets.

Case study: Antoine, 41 years old, SME manager in Nantes

Antoine is financing the purchase of his primary residence with a €300,000 fixed-rate amortizing loan over 20 years at 3.5%. He initially took out his bank's group insurance policy at 0.34%. Here is the effect of switching to a different insurance provider with equivalent coverage, reducing the rate to 0.12% thanks to his profile:

The €13,200 saving is not due to any renegotiation of the nominal interest rate or any additional savings effort: it stems solely from the Lemoine law and properly comparing insurance offers. It's the most accessible and cost-effective way to optimize a mortgage.

Beyond insurance, Antoine's real financial issue lies elsewhere: should he maximize his down payment to reduce the loan, or keep that cash to invest? At a cost of 3.5 %, the decision requires careful calculation, not an knee-jerk reaction.

Credit is not something you simply endure; it is something you structure.

This simulator provides an estimate of your monthly payment and total cost. The value is determined upfront: the loan term is chosen based on your actual time horizon, insurance options are compared using the Lemoine law, the balance between a down payment and cash investment is considered, and the loan is integrated with the rest of your assets. The same purchase can be financed in several ways, with very different consequences.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows us to structure your financing—amortizing, bullet, or Lombard, depending on your objective—solely in your best interest, not in the interest of a lender's profit margin. Let's make an appointment to audit your project and determine the most effective structure.

Frequently Asked Questions

Should we prioritize the shortest possible term to pay less interest?

Not necessarily. A shorter loan term reduces the total interest cost but increases the monthly payment and further limits your borrowing capacity. If your savings are earning more than your loan's interest rate, it may be more advantageous to slightly extend the term and invest the difference. The best decision depends on your debt-to-income ratio, your time horizon, and your overall wealth management strategy, not just the advertised interest cost.

What does the Lemoine law change for my mortgage insurance?

Since the Lemoine Law, you can change your mortgage insurance at any time, without fees or penalties, provided you offer at least equivalent coverage. On a long-term loan, insurance can represent up to a third of the total cost: a well-negotiated change of insurer often saves several thousand euros, especially for young and healthy borrowers. It's one of the most cost-effective, yet often overlooked, ways to save money.

Is it better to repay my loan early or invest my savings?

It all depends on the ratio between your loan's interest 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, with a high-interest loan, early repayment may be advantageous. This trade-off should be considered in terms of your overall assets, not on a product-by-product basis.

Is a fixed rate always preferable to a variable rate?

A fixed rate offers absolute security: your monthly payment never changes, regardless of market fluctuations. It's the standard choice for long-term financing without flexibility. A capped variable rate can be relevant in specific situations—high fixed rates, early repayment—but introduces an element of variability. This choice depends on your time horizon and risk tolerance.

What is the difference between Balmont Conseil and my bank advisor?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no financial ties to any bank. Where a bank advisor might place credit and insurance within their network, we structure your financing and compare insurance options across the entire market, solely in your best interest. Our brokerage and credit structuring are conducted to serve your wealth, not a lender's profit margin.