Installment Loan Calculator
Enter loan amount, nominal rate, term and any processing fee to get the monthly installment, total cost, interest and the effective annual rate.
Monthly Payment
€351.59
Total Cost
€16,876.23
Interest Cost
€1,876.23
Eff. Annual Rate
6.06 %
Effective annual rate as defined by the German Price Indication Ordinance (PAngV § 16 and annex): interest and processing fee relative to the amount paid out, compounded over the year, so even without a fee it is higher than the nominal rate.
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 should I consider when comparing installment loans?
Always compare the effective annual interest rate, not the nominal rate. Check for hidden fees, flexible repayment options, and whether special repayments are allowed without penalty.
Can I repay an installment loan early?
Yes. Since the EU Consumer Credit Directive was implemented in 2010, you can repay a consumer loan early at any time (§ 500 BGB). The lender may then charge an early repayment penalty of at most 1 % of the amount repaid early, or 0.5 % if no more than one year remains until the agreed end, and never more than the interest you would have paid in that period (§ 502(3) BGB).
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 Installment Loan Calculator?
The instalment loan calculator computes the monthly payment and total cost of a consumer loan. It helps compare different loan offers.
How does the Installment Loan Calculator work?
Enter the loan amount, nominal rate, term in months and, optionally, a processing fee. The calculator determines the monthly instalment, total interest and a year-by-year repayment schedule. It computes the effective annual rate the way the German Price Indication Ordinance (PAngV § 16 and annex) prescribes: interest and fees relative to the amount paid out, compounded over the year, i.e. (1 + monthly effective rate)^12 - 1. This makes different offers comparable.
Key Data and Facts
The effective annual rate is the best comparison metric. Typical terms: 12-120 months. Credit-score-dependent rate: the actual rate depends on your SCHUFA score.
Step-by-Step Guide
How to calculate your instalment loan step by step: 1. Set the loan amount: The required net loan amount (e.g. EUR 15,000). 2. Choose the term: A shorter term = a higher instalment, but less interest overall. 3. Enter the interest rate: Distinguish between the nominal interest rate and the effective annual interest rate. The effective annual interest rate includes all costs and is the value used for comparison. 4. Calculate the monthly instalment: Annuity formula or determined by the calculator. 5. Check the total costs: The sum of all instalments = loan amount + total interest. 6. Compare offers: Always use the effective annual interest rate, not the nominal interest rate. Creditworthiness-dependent interest rates can deviate significantly from the advertised rate. Example: Instalment loan of EUR 15,000, 48 months, nominal rate 5.9 % p.a., no fees. Monthly rate: 5.9 % / 12 = 0.49167 %, so q = 1.0049167. Monthly instalment: 15,000 x (1.0049167^48 x 0.0049167) / (1.0049167^48 - 1) = 351.5881, rounded EUR 351.59. Total payment: 48 x 351.5881 = EUR 16,876.23. Total interest: EUR 1,876.23. Effective annual rate: 1.0049167^12 - 1 = 6.06 %; monthly compounding puts it above the nominal rate even without fees. With a 2 % processing fee (EUR 300, financed) it rises to 7.14 %. Comparison over 84 months (nominal rate 5.9 %): instalment EUR 218.41, total interest EUR 3,346.43, i.e. EUR 1,470.20 more interest.
Calculation Example
Instalment loan of 15,000 EUR, 48 months, nominal rate 5.9 %. Monthly payment: 351.59 EUR. Total interest: 1,876.23 EUR. Effective annual rate: 6.06 %. Over 84 months: payment 218.41 EUR, interest 3,346.43 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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