Current for 2026•As of: July 2026

Loan Calculator calculate payments.

Calculate the monthly payment, amortization schedule and total cost of your loan.

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€
10,000 €1,000,000 €

Terms

%
0.50 %10.00 %
years
5 years40 years

Extra repayment

Tip: use extra repayments

Many banks allow annual extra repayments of 5-10% of the loan amount. Use this option to save on interest and become debt-free faster.

Monthly payment

1,251.56 €

Term: 25 years (300 months)

Cost overview

Loan amount250,000.00 €
Total interest+ 125,467.49 €
Total payment375,467.49 €

Breakdown of total payment

  • Repayment(66.6 %)250,000.00 €
  • Interest(33.4 %)125,467.49 €

After 10 years of fixed interest

Remaining debt175,071.81 €
Interest paid75,259.01 €
Repaid74,928.19 €

Effective APR

3.56%

Initial repayment

41.70%

Annual development

YearInterestRepaymentRemaining debt
18,648.456,370.27243,629.74
28,421.896,596.83237,032.90
38,187.266,831.46230,201.43
47,944.277,074.45223,126.99
57,692.667,326.06215,800.94
67,432.097,586.63208,214.32
77,162.257,856.47200,357.86
86,882.858,135.87192,221.98
96,593.468,425.26183,796.73
106,293.818,724.91175,071.81

+ 15 more years

Calculation without guarantee. Actual terms may vary.

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Financing a HomeTaking Out a Loan

What is an annuity loan?

The annuity loan is the most common form of mortgage financing in Germany. Its defining feature: the monthly payment (annuity) stays constant throughout the entire fixed-interest period.

While the interest portion is high and the repayment portion low at the start of the term, this ratio reverses over time. With every payment, the remaining debt decreases, which also lowers the interest charged on the remaining amount. The portion of the payment freed up this way automatically flows into repayment.

Features of the annuity loan

Constant payment
The monthly burden stays constant throughout the fixed-interest period
Planning certainty
Full cost control through a fixed monthly payment
Automatic repayment increase
The repayment share rises continuously while interest falls
Transparency
The amortization schedule shows the exact development over the entire term

How the monthly payment is calculated

The monthly annuity is calculated using the following formula:

Annuity formula

Annuity formula
ItemAmount
Payment = K × (qⁿ × (q-1)) / (qⁿ - 1)
KLoan amount
q1 + r (monthly interest factor)
rAnnual interest rate / 12
nTerm in months

This mathematical formula ensures that, with a constant monthly payment, the loan is fully repaid by the end of the term.

Nominal rate vs. APR: the key difference

When comparing loans, the annual percentage rate (APR) is the most important figure. It allows a fair comparison of different loan offers.

The two interest rates compared

Nominal rate
The pure interest for providing the loan, excluding additional costs
APR (effective rate)
Includes all costs: nominal rate, processing fees, discount points
Legal requirement
Lenders in Germany must disclose the APR under the Price Indication Ordinance
Comparability
Only the APR enables a genuine comparison of offers

Important tip:

Always compare loan offers based on the annual percentage rate! A seemingly cheap nominal rate can end up more expensive due to high additional costs than an offer with a higher nominal rate but lower fees.

Using fixed-interest periods and extra repayments strategically

Fixed-interest period: which term suits you?

  1. Short fixed-interest period (5-10 years): Lower interest rate, but interest-rate risk on refinancing. Suitable if you expect falling rates or plan to refinance soon.
  2. Medium fixed-interest period (10-15 years): A balanced ratio between interest rate and security. The right choice for most mortgage financing.
  3. Long fixed-interest period (15-20+ years): Higher interest rate, but maximum planning certainty. Ideal at low interest-rate levels or if you prefer security.
  4. Full-repayment loan: The fixed-interest period matches the entire term. No refinancing needed, highest planning certainty.

Extra repayments: how you save on interest

  1. Standard agreement: Typically 5-10% of the original loan amount can be repaid extra free of charge each year
  2. Faster debt reduction: Every additional euro repaid immediately reduces the interest burden for the remaining term
  3. Significant interest savings: Regular extra repayments can reduce total costs by tens of thousands of euros
  4. More flexibility: A lower remaining debt improves your negotiating position for refinancing

Practical example: mortgage financing with extra repayments

Example: €250,000 loan at 3.5% interest, 25-year term

Example: €250,000 loan at 3.5% interest, 25-year term
ItemAmount
Loan amount€250,000
Interest rate (effective)3.5% p.a.
Term25 years (300 months)
Monthly payment€1,251.56
Total payment€375,467.49
Of which interest€125,467.49

With an annual extra repayment of €5,000:

Variant with extra repayment

Variant with extra repayment
ItemAmount
Monthly payment€1,251.56
Annual extra repayment€5,000
New termapprox. 16.8 years
Total payment€330,921.77
Interest savings€44,545.72

Conclusion:

By making regular extra repayments of €5,000 per year, you shorten the term by more than 8 years and save over €44,000 in interest! This impressively shows how valuable extra repayments are for your mortgage financing.

Tips for your mortgage financing

How to optimize your loan terms

Build up equity
At least 20-30% of the purchase price as equity significantly lowers the interest rate and risk
Increase the initial repayment rate
2-3% instead of 1% initial repayment shortens the term and saves a lot of money long-term
Agree on an extra-repayment right
Be able to use flexibility for unexpected income (bonus, inheritance)
Compare several offers
Even a 0.1% interest-rate difference adds up to several thousand euros on large amounts
Budget for additional costs
Real estate transfer tax (3.5-6.5%), notary (1-2%), agent fees come on top of the loan amount
Check subsidy programs
KfW loans for energy-efficient construction offer favorable interest rates and repayment grants

Frequently asked questions about the loan calculator

Everything important about loans, interest and repayment

An annuity loan is the most common form of mortgage financing in Germany. Its defining feature: the monthly payment (annuity) stays constant throughout the entire fixed-interest period. At the start, the payment consists mostly of interest; over time the repayment share rises while the interest share falls. This provides planning certainty through a constant monthly burden.

The nominal rate is the pure interest for providing the loan. The APR (annual percentage rate), on the other hand, includes all costs (nominal rate + fees) and is the most important figure when comparing loans. Under the German Price Indication Ordinance, all lenders must disclose the APR to make offers comparable.

Extra repayments are unscheduled payments in addition to the monthly payment. Many loan agreements allow 5-10% of the original loan amount as extra repayment each year. They are almost always worth it: they significantly shorten the term, save a lot of interest and offer more flexibility for later refinancing.

The fixed-interest period is the period for which the interest rate is guaranteed. After it ends, refinancing must be arranged. Short fixed-interest periods (5 years) have lower rates but higher risk if rates rise. Long fixed-interest periods (15-20 years) cost more interest but offer planning certainty. The right choice depends on your risk tolerance and market outlook.

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