Finance
Extra Repayment Calculator
Calculate how annual extra repayments shorten your loan term and save interest.
- Last updated:
- Editorially reviewed
Inputs
Results
- Interest Saved
- €60.708
- Term Without Extra Repayment
- ~30 years
- Term With Extra Repayment
- ~18 years
- Time Saved
- ~12 years
- Total Interest Without Extra Repayment
- €148.211
- Total Interest With Extra Repayment
- €87.503
Run the numbers on a real property
With the address, size and price: financing, tax, cash flow and nearby comparable rents in one analysis.
Extra repayments (Sondertilgungen) are additional, voluntary payments on your property loan that directly reduce the outstanding balance. They cut the total interest burden and shorten the time until the loan is fully repaid. Our extra repayment calculator shows how strongly regular extra payments affect the term and interest costs.
How to Use This Calculator
The calculator compares your loan with and without annual extra repayments and presents the savings transparently. Here's how to proceed:
- Step 1: Enter the loan amount.
- Step 2: Enter the agreed interest rate.
- Step 3: Set the initial repayment rate as agreed in your loan contract.
- Step 4: Enter the planned annual extra repayment. Many banks allow 5 to 10% of the loan amount per year at no extra cost.
Understanding the Results
The results compare the two scenarios directly:
- Term Without Extra Repayment: The estimated total term until full repayment with the annuity alone.
- Term With Extra Repayment: The shortened term when you make additional annual extra repayments.
- Time Saved: The difference between the two terms in years.
- Total Interest Without Extra Repayment: The total interest cost over the full term without additional payments.
- Total Interest With Extra Repayment: The reduced interest cost from paying down the balance faster.
- Interest Saved: The absolute amount you save in interest through the extra repayments.
Why Extra Repayments Matter for Investors
Every extra repayment reduces the outstanding balance and therefore the basis for future interest. Since the interest share of an annuity payment is highest at the start, an early extra repayment has the strongest effect. With a loan of 240,000 euros at 3.5% interest and 2% repayment, an annual extra repayment of 5,000 euros shortens the term in this calculator from about 30 to about 18 years and saves about 60,700 euros in interest. It is important to agree the extra repayment option in the loan contract. Without an agreed right, early repayment depends on the bank's consent, and the bank can charge an early repayment penalty for it. For investors, however, extra repayment competes with alternative investments: if the achievable return on other investments exceeds the loan interest rate, it may be more sensible to deploy the capital there.
Frequently Asked Questions
What is an extra repayment?
An extra repayment (Sondertilgung) is an additional payment beyond the agreed annuity that directly reduces the loan's outstanding balance. It shortens the term and lowers total interest costs, as future interest is calculated on a smaller balance.
How much extra repayment is possible?
This depends on the loan contract. Many banks allow annual extra repayments of 5% or 10% of the original loan amount at no extra cost. Higher or unagreed extra repayments may trigger an early repayment penalty (Vorfälligkeitsentschädigung).
Is an extra repayment always worthwhile?
Not necessarily. An extra repayment is particularly worthwhile with high loan interest rates. If the return on an alternative investment exceeds the loan interest rate, it may be financially more advantageous to invest the capital elsewhere. You should also always maintain a sufficient liquidity reserve.
These calculations are for informational purposes only. Consult a professional for financial advice.