# Repayment calculator – rates, interest and repayment

Repayment calculator – How much does it cost to build a house? When will all debts be paid off? Here you can calculate free of charge how long you will need to repay your loan or financing for building a house.

Overview

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## Repayment calculator: credit, loan, installments

In most cases, construction financing includes a loan. This can be a bank loan, a subsidised loan or a low-interest loan from a building society. Regardless of the credit institution with which you have applied for financing and the interest rate you pay, the loan instalment consists of two elements. Interest and repayment are combined into one amount. The interest payment is retained by the bank, while the repayment is credited to your loan account. You can use a repayment calculator to determine the portion of the installments that will reduce your debt. Since the loan rate usually remains constant over the entire financing period, the ratio of interest to repayment shifts each month. The reason for this is that the interest is always recalculated based on the outstanding loan amount.

### Change in redemption

Since the loan amount decreases with each repayment, the repayment grows continuously compared to the interest payments. This means that at the beginning of your financing you have a high interest burden and a low repayment. As you keep servicing the same loan payments, this ratio shifts. Eventually, the ratio has reversed and you are paying a high amortization with a low interest rate. When you take out a real estate loan, the interest and repayment are already calculated for the entire term. You can see in your loan agreement what amount you are actually paying off each month. With a repayment calculator you can determine this amount exactly.

### Use repayment calculator effectively

The repayment calculator determines the amount by which you actually pay off your real estate debts each month. The interest payments are not taken into account. You can use the repayment calculator in different ways. If you have already taken out a real estate loan, you can determine which repayment rate applies to your current payments. However, the repayment calculator is also a very good tool when choosing a construction financing, with which you can make an effective planning.

With a construction loan, the bank sets the interest rate. You can only influence this by choosing a cheaper financing. The situation is different when it comes to repayment. You determine the repayment rate. At the beginning, the repayment rate is one percent due to the high interest burden after taking out a new real estate loan. It can increase dynamically or be fixed. With the repayment calculator, you can determine which repayment rate can be realized based on your individual financial possibilities. In principle, you pay off the loan faster with a higher repayment rate. However, you must be able to afford the costs. In the repayment calculator, you have the option of trying out different calculations to determine the ideal financing for your individual needs.

## Calculator at a glance

### Calculator – Exact planning of the construction financing

Calculators are necessary in relation to construction financing in order to accurately determine the cost of purchasing or renovating a property. A calculator is also used to determine the cost of the loan. The credit costs are composed of the interest and the repayment portion for the current loan amount. The interest plays an important role. Since the term of a real estate loan is usually ten years, the interest payment is spread over a long period. If an offer from a bank is only half a percentage point cheaper in their interest, you can already save several hundred euros a year. This is also due to the high loan amounts, which for most construction financing a six-digit amount. Before taking out a loan, an individual consultation is important. Often the construction financing consists of several pillars and not just a single loan. A building savings contract, equity capital and development loans come before taking out the classic bank loan. The reason for this is that these financings are significantly cheaper than the bank loan in terms of their costs. The calculator helps you to divide the financing into different elements and thus determine the costs with certainty.

### Interest calculator – Construction financing

The interest rates are a very large item in a construction financing. It is recommended that you compare the various offers and conditions well in advance. In this way, you will find out which construction financing is particularly favorable. Since the interest is a very large part of the monthly loan payment, especially in the first years of real estate financing, it is important that you try to save costs.

### Budget Calculator – Equity & Income

Before the purchase of a house, a comprehensive renovation or a new building can be planned, it is very important to determine the available budget. Construction financing is planned over a period of many years. Financing between ten and 25 years is possible. It is important that the financing is planned from the beginning on a secure foundation. The basis for the budget that is available to you for the conclusion of a construction financing is your income.

### Offer comparison calculator – advice & options

The offer comparison calculator is an important tool when it comes to choosing a partner for taking out construction financing. Many builders are dependent on taking out a classic loan at a bank or savings bank, because the funds from the equity, a building savings contract and a subsidized loan are not enough. Although the comparison possibilities of the indication by the Internet are very simple and transparent, many owners trust only in the offer of their house bank.

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