Annuity Calculator
Get the constant annuity for your loan: from amount, rate and term, see the annual and monthly payment, total interest and a yearly amortization schedule.
Monthly installment
€1,159.92
Number of payments
240
Total costs
€278,380.66
Total interest
€78,380.66
Monthly installment from the annuity formula with q = 1 + rate/12 and n = term × 12. The schedule sums the twelve monthly payments per year.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
What is an annuity loan?
An annuity loan has constant monthly payments throughout the term. Each payment consists of an interest portion and a repayment portion. As the loan balance decreases, the interest portion shrinks and the repayment portion grows.
How is the annuity calculated?
For monthly payments: payment = K x q^n x (q - 1) / (q^n - 1), where K = loan amount, q = 1 + nominal rate/12 and n = number of monthly payments. Example: 100,000 euros at 3 % over 20 years (n = 240, q = 1.0025): monthly payment 554.60 euros, total interest 33,103.42 euros. The shortcut loan x (rate + initial repayment) / 12 only applies when an initial repayment rate is agreed instead of a term: 100,000 euros at 3 % interest and 2 % repayment give 416.67 euros a month, and the loan then runs about 30.6 years.
Are my entered amounts stored anywhere?
No. All calculations happen exclusively in your browser. Your inputs are never sent to our server or stored. You can safely enter sensitive financial data.
Guide
What is the Annuity Calculator?
The annuity calculator computes the constant annual or monthly instalment (annuity) of a loan from the amount, interest rate and term.
How does the Annuity Calculator work?
The annuity is calculated using the annuity formula: instalment = loan * (q^n * (q-1)) / (q^n - 1), where q = 1 + rate/12 and n = number of monthly instalments (term in years x 12). If you choose "One payment per year", q = 1 + rate and n = term in years. The calculator shows a year-by-year repayment schedule and the total cost.
Key Data and Facts
The annuity stays constant while the interest portion falls and the principal portion rises. Advantage: predictable fixed payments. Choose a high initial repayment when rates are low.
Step-by-Step Guide
How to calculate the annuity step by step: 1. Enter the loan amount: the loan sum you want to take out. 2. Specify the annual interest rate: the borrowing rate from the loan offer. 3. Choose the term and payment frequency: the desired term in years; with monthly instalments n = years x 12. If you want to set an initial repayment rate instead of a term, use the amortization calculator. 4. Annuity formula: Installment = loan x (q^n x (q-1)) / (q^n - 1), where q = 1 + monthly interest rate and n = number of installments. 5. Read off the repayment schedule: each installment is split into an interest portion (decreasing) and a repayment portion (increasing). 6. Determine the total costs: the sum of all installments minus the loan amount = total interest. Example: Loan EUR 50,000, 5 % annual interest, 10-year term. Monthly interest rate: 5 % / 12 = 0.4167 %. Number of installments: 120. Monthly installment: 50,000 x (1.004167^120 x 0.004167) / (1.004167^120 - 1) = 530.3276, rounded EUR 530.33. Total payment: 120 x 530.3276 = EUR 63,639.31. Total interest: EUR 13,639.31. Installment 1: interest EUR 208.33, repayment EUR 321.99. Installment 120: interest EUR 2.20, repayment EUR 528.13. For comparison: with one payment per year the annuity is EUR 6,475.23; a twelfth of it (EUR 539.60) would be too high as a monthly instalment, because with monthly payments principal is repaid during the year.
Calculation Example
Loan 50,000 EUR, 5 % interest, 10 years. Monthly instalment: 530.33 EUR. Total interest: 13,639.31 EUR. Instalment 1: interest 208.33 EUR, repayment 321.99 EUR.
Sources
Official sources
Calculations are based on applicable German laws and official data:
- Deutsche Bundesbank
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
Reviewed by Konstantin Iakovlev · Last updated:
Finance
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