Using the Interest Calculator

The interest calculator helps you quickly understand the cost of your loan. Enter the loan amount in euros, the remaining loan period and the loan interest rate into the calculator. The calculator shows the cost of the loan. The monthly installment includes the repayment and the interest installment. The total cost is the sum of all repayments and interest installments. You can find a more detailed loan glossary at the bottom of the page.

The most common ways to protect yourself from rising interest rates are a fixed interest rate and an interest rate cap. The fixed interest rate is e.g. A method preferred by many real estate investors to ensure that the rental income is sufficient to cover the interest costs of the loan throughout the loan period. With an interest rate cap, you can protect yourself from rising interest rates and also benefit from a possible drop in interest rates.

Those thinking about the profitability of interest hedging can consider partial interest hedging instead of all-or-nothing hedging , which is a good compromise between risk and hedging costs. The asp loan includes a partial interest cap in the form of a government interest subsidy for the first 10 years. With the interest calculator, you can estimate, for example, monthly interest expenses at different interest rates.

Vocabulary

Monthly installment/payment installment, a monthly installment that includes the loan repayment and interest. The part of the installment that is used to repay the principal of the loan. The part of the installment that is used to pay the interest costs of the loan. In the calculator, the total cost of the loan includes all repayments and interest. You get the loan’s interest costs by subtracting the loan amount from the total cost. An amortization method in which the payment installment varies as the interest rates change, but the loan period remains the same. As interest rates rise, the loan payment installment increases, and as interest rates fall, the payment installment decreases.

Fixed draw

An amortization method in which the payment installment remains the same throughout the loan period, even if the interest rates change. As interest rates rise, the interest portion of the payment installment increases, the repayment portion decreases and the loan period increases.

Equal shortening

An amortization method in which the amortization remains the same throughout the loan period, and the loan period does not change. The monthly installment is the largest at the beginning and gradually decreases during the loan period. As interest rates rise, the monthly installment increases. The interest rate on the loan remains the same throughout the repayment period of the loan or another pre-agreed period. A fixed interest rate is usually higher at the beginning than a variable interest rate.

Interest rate cap

Upper limit for loan interest. The interest rate on the loan cannot rise above the interest rate ceiling during the period of validity of the interest ceiling. With the help of an interest rate cap, the borrower can protect himself from rising interest rates and benefit from a possible drop in interest rates.