In Polish: Odsetki
This is the word you will see in bank documents.
Definition
Interest is the bank's payment for lending money, calculated on the capital still to be repaid at the rate in the agreement. In a mortgage you pay it in every instalment together with the capital part. Monthly interest is, roughly, the balance times the annual rate divided by 12.
What it means for you
Interest is the largest cost of a mortgage and over 30 years can exceed the amount borrowed. You reduce it with a lower rate, a shorter term, decreasing instalments or overpayments. Every złoty you overpay lowers the balance on which the bank charges further interest.
Full entry in Polish, with a worked example and sources
Frequently asked questions
How much interest will I pay on a mortgage?
On PLN 400,000 over 30 years at 6% with equal instalments, about PLN 463,000. The result depends on the rate, term, type of instalments and overpayments.
Why do I mostly pay interest at the beginning?
Because interest is calculated on the balance, which is highest at the start. With equal instalments the capital part grows every month.
Does an overpayment reduce interest?
Yes. It lowers the balance on which the bank charges interest in the following months. Overpaying in the first years gives the most.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Interest rates and benchmarks”