Reviewed for accuracy by
David Chen, CFA
Use this German Mortgage Calculator (Annuitätendarlehen Rechner) to determine your monthly installment (Annuität) and the initial repayment (Tilgung) based on the loan amount and the annual interest rate.
German Mortgage Calculator
Calculated Monthly Payment:
€0.00
German Mortgage Calculator Formula
The German mortgage (Annuitätendarlehen) calculation is based on the initial annual service (Annuität), which is the sum of the initial annual interest and the initial annual amortization (repayment).
Where:
- $M_{monthly}$: Monthly Payment (Annuität)
- $P$: Principal (Loan Amount)
- $R$: Annual Interest Rate (as a decimal)
- $A$: Initial Amortization Rate (as a decimal)
Formula Sources: Baufi-XP Annuitätendarlehen, Interhyp Rechner
Variables Explained
Understanding the inputs is key to calculating your German mortgage service:
- Loan Amount (P): The total capital borrowed from the bank.
- Annual Interest Rate (R): The yearly interest percentage you pay on the outstanding loan balance.
- Initial Amortization Rate (A): Unique to German mortgages, this is the percentage of the principal you commit to repaying in the first year, defining your initial monthly payment.
- Fixed Interest Term (N): The number of years for which the interest rate is guaranteed.
Related Calculators
- Repayment Schedule Calculator
- Loan-to-Value Ratio Calculator
- Property Transfer Tax Calculator
- Total Debt Service Ratio Calculator
What is a German Mortgage Calculator?
A German Mortgage Calculator, often referred to as a “Baufinanzierungsrechner,” is specifically designed to handle the structure of the German “Annuitätendarlehen” (Annuity Loan). Unlike many Anglo-American loans, the core component is the Initial Amortization Rate (Tilgungssatz), which determines the starting monthly service (Annuität) alongside the fixed interest rate.
This calculator helps prospective homeowners quickly determine the actual financial burden. By fixing the initial repayment rate, the borrower locks in a stable monthly payment for the fixed interest term, providing planning security over the long run.
How to Calculate Your Mortgage (Example)
Let’s use an example with a Loan Amount of €300,000, 4.0% Interest Rate, and 2.0% Initial Amortization Rate:
- Determine Annual Interest: Multiply the Loan Amount by the Annual Interest Rate: €300,000 * 0.04 = €12,000.
- Determine Initial Annual Amortization: Multiply the Loan Amount by the Initial Amortization Rate: €300,000 * 0.02 = €6,000.
- Calculate Total Annual Service (Annuität): Add the annual interest and amortization: €12,000 + €6,000 = €18,000.
- Calculate Monthly Payment: Divide the Total Annual Service by 12: €18,000 / 12 = €1,500.
Frequently Asked Questions (FAQ)
What is the typical Initial Amortization Rate in Germany?
The minimum amortization rate is usually 1% or 2%, but experts often recommend a rate of 3% or more to pay off the loan faster, especially when interest rates are low.
What is Annuitätendarlehen?
It is the most common form of mortgage in Germany where the total monthly payment (Annuität) remains constant for the agreed fixed interest term. The proportion of interest and amortization within this payment shifts over time.
Does this calculator show the total loan cost?
This calculator focuses on the monthly payment and the initial setup. To calculate the total cost over the full loan duration, a full repayment schedule calculator is needed, as the monthly payments change in composition after the fixed term ends.
Is the Initial Amortization Rate negotiable?
Yes, the initial amortization rate (Tilgungssatz) is highly flexible and can often be adjusted during the fixed interest period (e.g., up to two times free of charge, depending on the bank).