Loan Refinancing Calculator
Compare your current loan with a new offer: monthly payment, interest and total cost of both loans, plus your net saving after any refinancing fees.
Existing Loan
The statutory maximum is used. Mortgage loans have no such cap: untick the box and enter the penalty quoted by your bank under refinancing costs.
New Loan
Old Loan
New Loan
Refinancing is worth it!
Savings: €955.64
Monthly savings: €26.55
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
When does refinancing make sense?
Refinancing is worthwhile when current interest rates are significantly lower than your existing rate. Consider the prepayment penalty, new loan costs, and the remaining term to calculate actual savings.
What costs are involved in refinancing?
Costs include the prepayment penalty on the old loan, possibly new notary fees for land charges, and any processing fees for the new loan. These must be weighed against the interest savings.
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 Loan Refinancing Calculator?
The debt restructuring calculator shows whether replacing existing loans with a cheaper one is worthwhile, and computes the potential savings.
How does the Loan Refinancing Calculator work?
Enter the details of your existing loan (remaining balance, rate, remaining term) and the conditions of the new loan. The calculator compares total costs and shows the savings. For a consumer instalment loan it can add the statutory maximum early repayment penalty under § 502(3) BGB. For a mortgage loan, untick that box and enter the penalty quoted by your bank under refinancing costs. Both are added to the new loan amount.
Key Data and Facts
Early repayment penalty on consumer instalment loans (§ 502(3) BGB): at most 1 % of the amount repaid early, 0.5 % if no more than one year remains until the agreed end, and never more than the interest that would still have been due in that period. Mortgage loans have no such cap. Restructuring usually worthwhile from a 1-2 percentage point rate difference.
Step-by-Step Guide
How to check whether debt restructuring is worthwhile step by step: 1. Record existing loans: remaining debt, current interest rate, remaining term and monthly instalment for each loan. 2. Configure the new loan: total remaining debt as the new loan amount, a more favourable interest rate, desired term. 3. Determine the early repayment penalty: for consumer instalment loans at most 1 % of the amount repaid early, at most 0.5 % if the remaining term does not exceed one year, and never more than the remaining interest (§ 502(3) BGB). Mortgage loans have no percentage cap; the bank charges its interest loss. 4. Compare total costs: remaining interest on the old loan vs. interest on the new loan + early repayment penalty. 5. Determine the savings: the difference in total costs. Example: old loan: 12,000 EUR remaining debt, 8.9% interest, 36 months remaining term. Remaining interest: about 1,720 EUR. Early repayment penalty: at most 12,000 x 1% = 120 EUR (more than a year remains, and the remaining interest is far higher). New loan: 12,120 EUR, 4.9% interest, 36 months. Interest on the new loan: about 940 EUR. Savings: 1,720 - 940 - 120 = 660 EUR. The debt restructuring is worthwhile.
Calculation Example
Old loan: 12,000 EUR, 8.9 %, 36 months, remaining interest 1,720 EUR. Early repayment fee: 120 EUR. New loan: 12,120 EUR, 4.9 %, 36 months, interest 940 EUR. Savings: 660 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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