Mortgage calculator

What does a mortgage calculator for German property work out?

The mortgage calculator works out the closing costs in euros, the monthly annuity of your loan and where you stand after the loan term you chose: remaining debt, interest paid and principal repaid. It also shows the first twelve months of the repayment schedule.

You enter purchase price and loan amount separately. The calculator does not subtract equity, so how much you borrow is up to you. As a guide: purchase price plus closing costs minus equity is the loan amount you need.

The closing costs are the purchase price times the sum of your percentages for agent, notary, transfer tax, land register and other costs.

How do you calculate the monthly payment on a mortgage?

Monthly payment = loan amount × (interest rate + initial repayment) ÷ 12. On a €300,000 loan at 4% interest and 2% repayment that is €300,000 × 6% ÷ 12 = €1,500. The payment stays the same for as long as the interest rate applies.

Each month, interest accrues on the remaining debt: remaining debt × interest rate ÷ 12. The rest of the payment repays principal. In the first month that is €1,000 of interest and €500 of repayment, in the second €998.33 of interest and €501.67 of repayment.

Because the remaining debt falls, the repayment share grows from month to month.

How high is the remaining debt after 10 years?

With 2% initial repayment and 4% interest, only about 24.5% of the loan is repaid after ten years. Of €300,000, a remaining debt of €226,375 is left.

For that remaining debt you need follow-up financing at whatever rate applies then. A higher initial repayment lowers the remaining debt, and with it the risk that a higher follow-up rate changes your payment sharply.

The calculator assumes no extra repayments and one fixed interest rate over the whole term you enter.

With 3% initial repayment the payment would be €1,750 and the remaining debt after ten years €189,563. The loan term in the calculator is the period for which it reports interest, repayment and remaining debt. Enter your fixed-rate period there.