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Interest-only period calculator
Simulate a loan with an initial interest-only period, then annuity repayment.
Monthly payment
€333.33
Schedule over fixed-rate period
| Month | Interest | Repayment | Remaining debt |
|---|---|---|---|
| 1 | €333.33 | €0.00 | €100,000.00 |
| 2 | €333.33 | €0.00 | €100,000.00 |
| 3 | €333.33 | €0.00 | €100,000.00 |
| 4 | €333.33 | €0.00 | €100,000.00 |
| 5 | €333.33 | €0.00 | €100,000.00 |
| 6 | €333.33 | €0.00 | €100,000.00 |
| 7 | €333.33 | €0.00 | €100,000.00 |
| 8 | €333.33 | €0.00 | €100,000.00 |
| 9 | €333.33 | €0.00 | €100,000.00 |
| 10 | €333.33 | €0.00 | €100,000.00 |
| 11 | €333.33 | €0.00 | €100,000.00 |
| 12 | €333.33 | €0.00 | €100,000.00 |
Showing 12 of 343 months (includes fixed-period end).
Calculations are indicative only and do not constitute a financing offer. No guarantee of accuracy. This tool does not replace professional legal, tax, or financial advice.
What is a tilgungsfreie Anfangszeit (initial interest-only period)?
During a tilgungsfreie Anfangszeit (initial interest-only period) you pay interest only and the remaining debt stays unchanged. After that the loan carries on as an annuity loan with the agreed initial repayment. The payment is lower at the start and jumps to its full level once the interest-only period ends.
Payment during the interest-only period = loan amount × interest rate ÷ 12. Payment afterwards = loan amount × (interest rate + initial repayment) ÷ 12. On €100,000 at 4% interest and 2% repayment that is €333.33 first and €500 afterwards.
As the monthly payment, the calculator shows the payment of the first month, which is the interest-only payment.
What does an interest-only period cost?
It costs extra interest, because the remaining debt starts falling later, and it leaves a higher remaining debt at the end of the fixed-rate period. In the example with twelve interest-only months, over ten years that is €918.05 more interest and €2,918.05 more remaining debt than an annuity loan without an interest-only period.
Against that stand the €2,000 you pay less in the first twelve months: 12 × €166.67. At the end, the remaining debt is higher by that €2,000 plus the €918.05 of extra interest.
When does an interest-only period make sense?
When your outgoings are temporarily higher at the start than later. Typical cases are a new build where you still pay rent until you move in, or a refurbishment during which the flat stands empty and earns no rent.
Do your sums with the full payment and not with the low starting payment. You have to be able to carry the months that follow.
In the calculator you set the number of interest-only months freely and compare total interest and remaining debt after the fixed period with the result without an interest-only period.
During a construction phase, Bereitstellungszinsen (commitment interest) often come on top for the part of the loan not yet drawn. The calculator does not include them.
Worked example
Loan amount €100,000, example interest rate 4%, initial repayment 2%, fixed-rate period 10 years, 12 interest-only months.
Months 1 to 12: €333.33 payment, interest only. From month 13: €500 payment.
Total interest over 10 years: €36,376.42.
Remaining debt after the fixed period: €78,376.42.
Guide
How it works
Loan & rate
Enter loan amount, nominal rate, and fixed-rate period.
Free months
Set interest-only months and subsequent repayment.
Check the transition
Compare interest-only phase and annuity after the free period ends.
Questions
Frequently asked questions
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