Early Repayment Penalty Calculator
Calculate the early repayment penalty for premature loan repayment.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
Frequently Asked Questions
What is a prepayment penalty?
A prepayment penalty compensates the bank for lost interest when you repay a loan early. For mortgage loans, it is typically calculated as the difference between the old and current interest rate for the remaining fixed-rate period.
When can I avoid a prepayment penalty?
After ten years of loan disbursement, you can terminate with six months' notice without penalty (Section 489 BGB). Also, if the bank made errors in the loan agreement, the penalty may be invalid.
What is the Early Repayment Penalty Calculator?
The early repayment penalty calculator computes the compensation the bank may charge for early repayment of a loan.
How does the Early Repayment Penalty Calculator work?
Enter the remaining balance, remaining term, contract rate and current market rate. The calculator determines the penalty using the asset-asset or asset-liability method. Consumer loans are subject to a statutory cap.
Key Data and Facts
Consumer loans: max. 1% or 0.5% of remaining balance. Mortgage loans: calculated per Federal Court case law. Special termination right after 10 years: no penalty.
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