Mortgage Calculator
Calculate total costs, financing needs and monthly instalment for your property purchase.
As of September 2026Basis: State real estate transfer taxCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
Tap to type · drag sideways to adjust
Ideal: 20–30% of the purchase price
For affordability (assumption: payment at most 35–40%)
Sets the real estate transfer tax
You can also drag the handle on the chart
From your offer. Default 3.78% = bank average July 2026 (Bundesbank)
More detailsFixed rate 10 yrs · no special repayment · broker 3.57% · no renovation
Your rate is fixed for this long; afterwards you need follow-up financing for the remaining debt.
Extra repayment at the end of each year – only as far as your contract allows it.
Buyer's share incl. VAT, 0% without a broker
Enter or drag a target payment – the purchase price adjusts
You finance €364,296 at 3.78% interest with 2.41% repayment and are debt-free after 25 years. Total interest: €199,378.
The payment is 38% of your net income of €5,000 – borderline. Plan for reserves.
- 6 yr 9 moRepayment exceeds interest
- 15 yr 5 moHalf repaid
- 25 yrDebt-free
- 6 yr 9 moRepayment exceeds interest
- 15 yr 5 moHalf repaid
- 25 yrDebt-free
Financing
- Purchase price
- €400,000
- Purchase costs
- + €44,296
- Total cost
- €444,296
- Equity
- − €80,000
- Loan amount needed
- €364,296
Purchase costs
- Real estate transfer tax (6.5%)
- €26,000
- NotaryPurchase contract under GNotKG (notarisation, completion, supervision, 19% VAT); expenses of €30 assumed; without land charge
- €2,838
- Land registryTransfer of ownership and priority notice under GNotKG; without land charge
- €1,178
- Broker commission
- €14,280
- Total purchase costs
- €44,296
- Borrowing rate
- 3.78%
- Remaining debt after 10 years fixed rate
- €257,840
- Initial repayment
- 2.41%
- Loan-to-value
- 91.1%
- Equity ratio
- 18%
- Total interest
- €199,378
- Actual term
- 25 years
Where the money goes
- Repaid€364,29660%
- Interest paid€199,37833%
- Purchase costs€44,2967%
What you can do
With €1,750.00 per month (35% of net income)
you can finance a purchase price of up to about €377,500, all else being equal.
€20,000 more equity−€10,946 interest
The payment drops to €1,775.76.
Debt-free in 20 years−€43,939 interest
The payment rises to €2,165.56.
How this was calculated
The borrowing rate comes from your input. The default is 3.78%, the average bank rate for new home loans with a 5–10 year fixed-rate period in July 2026 (Deutsche Bundesbank, MFI interest rate statistics) – not an offer. After the fixed-rate period the calculator continues with the same rate; follow-up financing may be more or less expensive.
Repayment is set so that the loan is fully repaid after 25 years (annuity, monthly payments).
Affordability (assumption, not a standard): up to 35% of household net income is considered affordable, up to 40% borderline. Notary and land registry fees are calculated for the purchase contract using fee table B of the GNotKG (Court and Notary Fees Act); the land charge for the loan costs extra.
Tip: 20–30% equity lowers the interest rate and makes the financing safer. Pay the purchase costs from your own funds if possible.
RZ-26 · headon.pro
Understanding mortgage financing: how to plan it right
A mortgage is more than just a loan for a property. Besides the purchase price, you also need to budget for the additional purchase costs - and these can be substantial depending on the state and your situation.
The most important factor for good interest rate conditions is the loan-to-value ratio: the less of the property value you need to finance, the cheaper the loan.
The key figures at a glance
- Equity ratio
- At least 20% of the total requirement, ideally 30%. Additional costs should always come from equity.
- Loan-to-value ratio
- Under 60% = best rates. Up to 80% = good conditions. Over 100% = surcharges.
- Monthly burden
- Max. 35-40% of net income for housing costs. Plan a buffer for repairs.
- Additional purchase costs
- Depending on the state and broker, around 4.5–11% of the purchase price for property transfer tax, notary, land registry and broker.
Example calculation: €400,000 property in North Rhine-Westphalia
How to lower your financing costs
- 1Build up more equityEvery additional euro lowers the loan-to-value ratio and improves the conditions.
- 2Compare statesBavaria has the lowest property transfer tax at 3.5%, NRW/Brandenburg 6.5%.
- 3Negotiate the broker feeSince 2020, buyer and seller share the commission. Without a broker, you save 3-7%.
- 4Agree on special repayments5-10% special repayment per year should be possible free of charge.
- Purchase price
- €400,000
- Property transfer tax (6.5%)
- €26,000
- Notary + land registry (GNotKG)
- €4,015.65
- Broker (3.57%)
- €14,280
- Total cost
- €444,295.65
- - Equity
- €80,000
- Financing need
- €364,295.65
Equity: the key to affordable financing
Equity is the most important factor for a secure and affordable mortgage. The golden rule: you should be able to pay at least 20% of the purchase price plus all additional costs from your own funds.
For a purchase price of €400,000, that means: €80,000 + approx. €50,000 in additional costs = €130,000 in equity for solid financing.
Sources of equity
- Savings
- Overnight deposits, fixed deposits, savings accounts - the classic path to equity.
- Building society savings contract
- Accumulated savings plus a low-interest building society loan.
- Family support
- Gifts or private loans from parents/relatives.
- Sweat equity
- Manual labour you do yourself (max. 10-15% of the construction cost).
Frequently asked questions about mortgage financing
Everything important about equity, additional purchase costs and financing
How much equity do I need for a mortgage?
There is no statutory minimum. It is common to pay at least the additional purchase costs (around 4.5–11% of the purchase price, depending on the state and broker) from equity. The more equity, the lower the loan-to-value ratio – which usually affects the interest rate.
What are the additional purchase costs of buying property?
Additional purchase costs include: property transfer tax (3.5-6.5% depending on the state), notary and land registry fees under the GNotKG (together around 1%, €4,015.65 for €400,000) and, if applicable, broker commission (with a split commission the buyer pays at most half, § 656c BGB). These costs come on top of the purchase price and usually must be paid from equity.
What is the loan-to-value ratio and why does it matter?
The loan-to-value ratio indicates what percentage of the property value you are financing. Under 60% gets you the best rates, up to 80% still good conditions. Over 100% (full financing), interest rates are significantly higher and the risk increases.
How high can the monthly instalment be at most?
The rule of thumb: a maximum of 35-40% of net household income for housing costs including loan instalment, utilities and maintenance. At €5,000 net, that is €1,750-2,000. Also plan reserves for unforeseen expenses.
Which term should I choose for my mortgage?
The term depends on what you can afford. Shorter terms (15-20 years) mean higher instalments but lower interest costs. Longer terms (25-30 years) lower the instalment but significantly increase the total cost. A good compromise: 25 years with a special repayment option.