Finance
Mortgage Calculator
Calculate monthly payments, total interest, and loan payoff timeline for German mortgages.
- Last updated:
- Editorially reviewed
Inputs
Results
- Monthly Payment
- €1.100
- Annual Payment
- €13.200
- First Year Interest
- €8.400
- First Year Repayment
- €4.800
- Remaining Balance after Fixed Period
- €183.689
- Estimated Years to Full Payoff
- ~30 years
Run the numbers on a real property
With the address, size and price: financing, tax, cash flow and nearby comparable rents in one analysis.
German mortgage financing operates on the annuity principle, where the monthly payment (Annuität) consists of interest (Zinsen) and principal repayment (Tilgung). Our mortgage calculator computes the key figures for your property financing and shows how the interest rate and repayment rate affect the total term and the remaining balance after the fixed-rate period.
How to Use This Calculator
The calculator models an annuity loan with a fixed-rate period. Here is how to use it:
- Step 1: Enter the desired loan amount. This is the part of the purchase price and closing costs that you do not pay from your equity (Eigenkapital).
- Step 2: Enter the current interest rate. Refer to current bank offers for your desired fixed-rate period.
- Step 3: Set the initial repayment rate. The higher it is, the faster the balance falls and the higher the monthly payment.
- Step 4: Enter the fixed-rate period (Zinsbindungsfrist) in years. The calculator uses it to work out the remaining balance at the end of the fixed period.
Understanding the Results
The calculated results give you a comprehensive overview of your financing structure:
- Monthly Payment: The constant annuity you pay to the bank each month, consisting of both interest and principal repayment portions.
- Annual Payment: The sum of all monthly payments over one year.
- First Year Interest: The portion of your payments allocated to interest in the first year. This portion decreases over the loan term.
- First Year Repayment: The portion that actually goes toward paying down the principal. This amount increases over time.
- Remaining Balance after Fixed Period: The outstanding loan amount at the end of the fixed-rate period, for which you will need refinancing.
- Estimated Years to Full Payoff: The projected total duration until the loan is fully repaid, assuming constant conditions.
Why This Matters for Investors
The financing structure has a strong effect on the profitability of a real estate investment. A higher repayment rate accelerates debt reduction but decreases monthly cashflow. A lower repayment rate raises short-term cashflow but leaves a higher remaining balance and therefore more interest rate risk on refinancing. The fixed-rate period determines how long the rate is locked: a longer period gives planning security, while a shorter one leads to new terms sooner, which may be higher or lower. Model several scenarios and compare cashflow, remaining balance, and total interest costs.
Frequently Asked Questions
What does Annuitat mean in German mortgages?
The Annuität is the constant monthly payment consisting of interest (Zinsen) and principal repayment (Tilgung). Over the loan term, the ratio shifts: the interest portion decreases while the repayment portion increases. The total monthly payment, however, remains constant throughout the fixed-rate period.
What fixed-rate period is recommended?
This depends on the interest rate environment and your risk tolerance. A long fixed-rate period locks in the rate for many years and protects against rising rates. A shorter period may make sense if you expect rates to fall, but carries the risk of higher rates at refinancing. Compare the remaining balance for different fixed-rate periods in the calculator.
What happens after the fixed-rate period ends?
After the fixed-rate period expires, you need refinancing (Anschlussfinanzierung) for the remaining balance. You can renegotiate terms with your current bank (Prolongation) or switch to a different lender (Umschuldung). Start planning well before the fixed-rate period ends.
These calculations are for informational purposes only. Consult a professional for financial advice.