Monthly mortgage payment calculator in Switzerland

Understanding the actual monthly cost of your mortgage is essential for planning your budget. Unlike the affordability calculation (based on a theoretical rate of 5%), the monthly payments you actually pay depend on the actual interest rate negotiated with your bank, the type of mortgage chosen and the structure of your financing.

This page presents detailed monthly payment tables for different mortgage amounts and rates, giving you a clear picture of what your mortgage will actually cost on a day-to-day basis.

Components of monthly mortgage payments

Your monthly mortgage payment is composed of several elements:

1. Mortgage interest

This is the main cost of your mortgage. Interest is calculated on the borrowed capital at the negotiated rate. For a CHF 800,000 mortgage at a 5-year fixed rate of 1.35%:

• Annual interest: CHF 800,000 x 1.35% = CHF 10,800
• Monthly interest: CHF 10,800 / 12 = CHF 900

Mortgage interest is tax-deductible from your taxable income in Switzerland, which represents a significant tax advantage. For a marginal tax rate of 35%, the tax saving on CHF 10,800 of interest would be CHF 3,780 per year.

2. 2nd rank amortisation

If your mortgage exceeds 67% of the property value, the portion between 67% and 80% (the 2nd rank) must be amortised within a maximum of 15 years. Amortisation can be done in two ways:

• Direct amortisation: You regularly repay part of the capital. The mortgage decreases and so does the interest.
• Indirect amortisation: You pay into a pillar 3a pledged in favour of the bank. The mortgage remains constant, but you benefit from the pillar 3a tax deduction. At maturity, the pillar 3a capital is used to repay the 2nd rank.

3. Maintenance costs and charges

Although they are not strictly part of the mortgage payment itself, the property maintenance costs (approximately 1% of the value per year) must be budgeted in your monthly charges. For a CHF 1,000,000 property, allow approximately CHF 833 per month.

Monthly payment table by mortgage amount

The following table presents monthly interest (excluding amortisation and maintenance) for different mortgage amounts and rate types, based on indicative market rates in March 2026:

Indicative rates as of March 2026. Actual rates vary depending on your profile, the lender and market conditions. Monthly interest only, excluding amortisation and maintenance costs.

Complete example: total monthly cost

Let us take a concrete example for a couple buying a condominium apartment in Geneva:

• Purchase price: CHF 1,200,000
• Equity: CHF 240,000 (20%)
• Mortgage: CHF 960,000 (80%)
• 2nd rank: CHF 960,000 - CHF 804,000 = CHF 156,000
• Rate chosen: Fixed 5 years at 1.35%

For comparison, the theoretical charges used for the affordability calculation would be CHF 4,867 per month (with the 5% rate), requiring a minimum gross income of at least CHF 175,300 per year.

The difference between the actual monthly payment (CHF 2,947) and the theoretical monthly payment (CHF 4,867) is significant: CHF 1,920 per month. This margin constitutes your safety reserve in case of rate increases.

Impact of mortgage type on monthly payments

Fixed-rate mortgage

The rate is guaranteed for the entire duration of the contract (2 to 15 years). Your monthly payments are perfectly predictable. The longer the term, the higher the rate, but the greater the security.

• Advantage: Predictable budget, protection against rate increases
• Disadvantage: Generally higher rate than SARON, early termination penalties

SARON mortgage

The rate varies according to the SARON reference rate (Swiss Average Rate Overnight), published by SIX Swiss Exchange. Your rate consists of the SARON + a fixed bank margin (typically 0.60% to 0.80%).

• Advantage: Often lower rate than fixed, no termination penalties, benefit from rate decreases
• Disadvantage: Variable monthly payments, risk of rate increases

In March 2026, with the SNB policy rate at 0.0%, the SARON stands at approximately 0.0%, yielding SARON mortgages at approximately 0.64% - 1.20% all-in.

Combination strategy (split)

It is possible to divide your mortgage into several tranches with different types. For example:

• 60% in 10-year fixed at 1.75% for security
• 40% in SARON at 0.90% to benefit from low rates

For a CHF 800,000 mortgage, this would give:

Evolution of monthly payments over time

Your monthly payments evolve over time for several reasons:

• Amortisation: As you repay the 2nd rank, the mortgage decreases and so does the interest
• Renewal: At the end of your fixed-rate term, you renegotiate a new rate which may be more or less favourable
• Variable SARON: If you have a SARON mortgage, your monthly payments fluctuate with the market
• Taxes: Mortgage interest is deductible, which reduces your net tax burden

Comparison: renting vs. buying in terms of monthly costs

For a 4.5-room apartment in Geneva valued at CHF 1,200,000, let us compare the monthly cost of ownership with an equivalent rent:

Simplified estimate. A complete comparison should integrate the opportunity cost of tied-up capital, potential property appreciation, and the tax specifics of your situation.

Tips to optimise your monthly payments

1. Compare rates: A 0.20% difference on a fixed rate represents CHF 1,600 per year for a CHF 800,000 mortgage. Use a broker to get the best conditions.
2. Choose the right timing: Rates fluctuate. In periods of low rates, prefer a long-term fixed rate. In periods of high rates, SARON may be more advantageous in the short term.
3. Opt for indirect amortisation: Contributing to a pillar 3a rather than repaying directly allows you to benefit from an additional tax deduction.
4. Renegotiate at maturity: Never renew automatically. Compare offers from several lenders. It is the ideal time to optimise your conditions.
5. Anticipate the renewal: You can reserve a fixed rate (forward) 6 to 24 months before the maturity of your current mortgage.