Before signing a loan agreement, you should know exactly what it will really cost you: not just the monthly payment, but the total interest over the full term. A €200,000 mortgage at 3.5% over 20 years costs nearly €80,000 in interest alone. Our loan calculator shows you all the key figures including a complete amortisation schedule.
Step by Step: How to Use the Loan Calculator
- Enter the loan amount: The desired loan sum in euros, for example €250,000.
- Enter the interest rate: The effective annual rate from the loan offer, for example 3.8%.
- Choose the term: In years (typically: mortgages 15–30 years, car loans 3–7 years).
- Read the result: Monthly payment, total interest and total cost of the loan.
- View the amortisation schedule: Each annual row shows: payment, interest portion, repayment portion, remaining balance.
Practical Examples
Mortgage €300,000, 3.5%, 25 years: Monthly payment: €1,501.07. Total interest: €150,321. Total amount repaid: €450,321.
Car loan €20,000, 5.9%, 60 months: Monthly payment: €384.85. Total interest: €3,091. Total repaid: €23,091.
Comparing repayment rates: €200,000, 4%, 1% initial repayment: payment €833, term 40 years, interest €198,000. With 2% repayment: payment €1,000, term 27 years, interest €119,000 → €79,000 saved!
Annuity Loan Formula
Monthly payment = K × (i × (1+i)^n) / ((1+i)^n − 1)
- K = loan amount
- i = monthly interest rate (annual rate ÷ 12)
- n = term in months
Frequently Asked Questions (FAQ)
What is the difference between nominal and effective interest rate?
The nominal rate is the pure interest rate without additional charges. The effective annual percentage rate (APR) also includes fees such as arrangement fees and account charges. Always use the APR when comparing loan offers.
What is an overpayment?
An overpayment is an extra lump-sum repayment on top of regular monthly payments. Many lenders allow 5–10% of the loan amount per year without penalty. Overpayments reduce the outstanding balance and total interest considerably.
What happens at the end of the fixed-rate period?
When the fixed rate expires (typically after 10–15 years), the remaining balance must either be repaid in full or refinanced at new terms. Plan your remortgage well in advance – 12–24 months before the fixed rate ends.
