Calculate your amortization schedule with monthly payment, total interest, and remaining balance. Simulate annuity loans with prepayments — free and instant.
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Amount of the loan taken out.
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Borrowing rate p.a.
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Initial repayment rate in % p.a.
€
Annual prepayment (optional).
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For illustration only – your own calculation is what counts.
Explanation
How Amortization Calculator works
The amortization calculator creates a detailed repayment schedule for annuity loans. It shows how interest and principal portions develop over the term, and calculates total duration, total interest, and remaining balance.
Interest rate and initial repayment rate are inserted as decimals. Their sum yields the annuity rate, which, converted to monthly, determines the constant payment.
Interest portion of a paymentInterest portion = remaining balance × interest rate / 12
The interest portion is calculated monthly on the current remaining balance. As the balance decreases, the interest portion also decreases — and the principal portion increases accordingly.
With an annuity loan, the monthly burden remains constant. What changes is the internal split: At the beginning, interest dominates; at the end, almost only principal remains. This mechanism ensures that debt reduction accelerates over time.
Knowledge
Understanding the annuity loan
How an annuity loan works and why the principal portion increases over time.
The annuity loan is the most common loan type for real estate financing in Germany. Its key feature: The monthly payment remains constant during the entire interest lock-in period. Within the payment, however, the ratio of interest and principal continuously changes.
Beginning: High interest portion, low principal — the balance decreases slowly.
Middle: Interest and principal portions are approximately equal.
End: Low interest portion, high principal — the balance decreases quickly.
Prepayments reduce the balance immediately and lower total interest costs.
Higher initial repayment = shorter duration and less total interest.
A higher initial repayment increases the payment, shortens the term under otherwise equal assumptions and lowers the total interest costs. Which rate is affordable and sensible depends on the interest rate, income, reserves and the contract terms.
Practice
Practical examples
For illustration only – your own calculation is what counts.
Mortgage EUR 200,000
A mortgage of EUR 200,000 with 3.5% borrowing rate and 2% initial repayment. What is the monthly payment and how long is the repayment?
Result: The monthly payment is EUR 916.67 and the exact engine term is 29 years.
Consumer loan EUR 15,000
A loan of EUR 15,000 with 5.9% interest and 10% initial repayment. How quickly is it paid off?
Result: The monthly payment is EUR 198.75. Repayment takes 7 years 11 months; total interest is EUR 3,792.02.
Effect of prepayments
EUR 200,000 mortgage with 3.5% interest and 2% initial repayment — plus EUR 5,000 annual prepayment. How much shorter is the duration?
Result: With an annual EUR 5,000 prepayment, the term is 16 years 11 months and total interest EUR 65,188.95.
Comparing different repayment rates
EUR 300,000 loan at 4% interest: What changes with 1%, 2%, or 3% initial repayment regarding duration and total costs?
Result: At 3% initial repayment, the payment is EUR 1,750, the term 21 years 3 months, and interest EUR 145,573.04. At 1%, the term is 40 years 4 months and interest EUR 304,545.04.
Taking advantage of low interest rates
EUR 250,000 mortgage at only 1.5% borrowing rate and 3% initial repayment. How do low rates affect total costs?
Result: The monthly payment is EUR 937.50, the term 27 years 1 month, and total interest EUR 54,289.00.
Notes
Common mistakes
Choosing too low an initial repayment rate
With 1% initial repayment and 3.5% interest, repayment takes over 40 years. Choose at least 2%, preferably 3% initial repayment. Each additional percentage point shortens the duration by approx. 10 years.
Choose at least 2%, preferably 3% initial repayment to limit the duration to approx. 25-30 years.
Not arranging prepayment rights in the contract
Without contractual prepayment rights, the bank can refuse prepayments or charge an early repayment fee. Recommendation: Secure at least 5% annual prepayment right in the contract.
Secure at least 5% annual prepayment right in the loan agreement.
Underestimating remaining balance at end of interest lock-in
With a low repayment rate, a large portion of the loan remains open after 10 or 15 years of interest lock-in. Refinancing at higher rates can become significantly more expensive — a considerable risk.
Choose repayment so that the remaining balance after lock-in is manageable, and consider a forward loan as protection.
Not budgeting for financing ancillary costs
Property transfer tax (3.5-6.5%), notary (1.5-2%), broker (3-7%), and land registry costs are added to the purchase price. These 10-15% ancillary costs must be additionally financed or covered from equity.
Calculate ancillary costs (10-15% of purchase price) in advance and cover them from equity.
Ignoring total interest costs
If you look only at the monthly payment, you overlook the total interest costs over the full term. At 300,000 euros, 3.5% interest and 1% initial repayment, the calculator engine reports 280,990.17 euros in total interest.
Check the total interest at the end of the term in the amortization schedule and compare it with higher repayment variants.
FAQ
Frequently asked questions
What is an amortization schedule?
An amortization schedule shows for each period (month or year) the breakdown of the payment: interest portion, principal portion, and the remaining balance. It makes visible how the loan develops over the entire term.
What is an annuity loan?
With an annuity loan, the monthly payment (annuity) remains constant over the entire term. Within the payment, the ratio shifts: At the start, the interest portion is high and the principal low. As the balance decreases, the ratio reverses.
Why does the interest portion decrease over time?
Interest is calculated on the current remaining balance. Since part of the loan is repaid with each payment, the balance decreases — and with it the interest portion. The freed-up amount automatically flows into principal, so repayment accelerates.
What does initial repayment rate mean?
The initial repayment rate is the repayment share relative to the original loan at the start. Together with the borrowing rate it determines the initial annuity; with the same initial repayment rate, a higher rate also raises the payment and can shorten the term.
What is a prepayment and what does it achieve?
A prepayment is an additional payment that directly reduces the remaining balance. This lowers total interest costs and shortens the duration. Many loan agreements allow annual prepayments of 5-10% of the original loan amount.
What is the remaining balance at the end of the interest lock-in?
The interest lock-in is the period for which the interest rate is fixed (e.g., 10 or 15 years). After it expires, the remaining loan balance must be refinanced at a new rate — the so-called refinancing risk.
How is the monthly payment calculated for an annuity loan?
The monthly payment is: (Interest rate + Initial repayment) / 12 x Loan amount. Example: EUR 200,000, 3.5% interest, 2% repayment: (3.5% + 2%) / 12 x 200,000 = EUR 916.67 monthly.
Is the result a binding financing commitment?
No. The amortization calculator provides a mathematical model calculation for guidance. Actual conditions depend on creditworthiness, collateral value, ancillary costs, and individual agreements with the bank. The result does not replace professional financial advice.
How does the interest rate affect the total term?
It depends on what stays constant. With a constant initial repayment rate, a higher rate raises the annuity: for EUR 200,000 and 2% initial repayment, the engine term falls from 34 years 9 months at 2% interest to 27 years 7 months at 4%, while total interest rises. With a constant monthly payment, a higher rate reduces repayment and lengthens the term.
What is a forward loan?
A forward loan agrees today on conditions for future refinancing. Lead time, any premium, and the maximum period depend on the provider and offer. Up to five years is a possible market upper limit, not a statutory entitlement.
Why is the initial repayment rate important?
For EUR 300,000 at 3.5%, the engine returns 43 years 1 month and EUR 280,990.17 interest at 1% initial repayment, versus 22 years 2 months and EUR 131,405.73 at 3%. This is example-specific, not a general halving rule.
What happens after the interest lock-in ends?
Any remaining balance must be refinanced or repaid. Section 489(1)(2) BGB permits termination ten years after full receipt of the loan with six months' notice. A later agreement on repayment time or borrowing rate may replace that date.
Limits
Limitations
Assumption of a constant interest rate: The calculator assumes an unchanged rate over the entire term. After the interest lock-in expires, conditions may change.
No financing ancillary costs: Property transfer tax, notary fees, land registry fees, and broker costs are not included in the calculation.
No comparison with rent: A buy-vs-rent comparison is not modeled. The calculator shows only the loan side.
Mathematical model calculation: The result does not replace individual financial advice. Actual bank conditions depend on creditworthiness, collateral value, and other factors.
Sources
Sources and references
§ 488 BGB — DarlehensvertragBundesministerium der Justiz
Legal basis for loan agreements: Obligation to repay the loan in agreed installments.
View sourceRetrieved: 07/28/2026 · Verified on: 07/28/2026 · Primary source
§ 489 BGB — Ordentliches KündigungsrechtBundesministerium der Justiz
Termination right ten years after full receipt of the loan with six months' notice; a later agreement on repayment time or borrowing rate may shift the relevant date.
View sourceRetrieved: 07/28/2026 · Verified on: 07/28/2026 · Primary source
Preisangabenverordnung (PAngV)Bundesministerium der Justiz
Regulations for disclosing the annual percentage rate for mortgage loans and consumer credits.
View sourceRetrieved: 07/28/2026 · Verified on: 07/28/2026 · Primary source
Three amortising-loan scenarios show the difference between monthly relief and long-term borrowing costs.
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