Loan prepayment penalty calculator: what does early repayment cost you?
Anyone repaying their loan within the fixed-rate period — for example when selling the property — usually pays the bank a prepayment penalty. This estimate gives a rough order of magnitude; the bank calculates by its own method.
How is the prepayment penalty for early repayment of a loan estimated?
The calculator estimates the bank's interest loss from early repayment. The penalty is compensation, not a fine; the bank may only claim its actual damage (§490(2), §502 BGB). It reflects the gap between your contract rate and what the bank can earn by reinvesting. Ten years after full disbursement, §489 BGB allows termination without penalty.
A very rough approximation, not a legally binding calculation. Banks calculate by their own method (asset-liability / asset-asset); special repayment rights, saved administrative and risk costs and the exact interest structure reduce the amount. Under §489 BGB, termination with six months' notice without penalty is possible ten years after full disbursement. This is not legal advice.
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Mortgage calculator for early repayment: estimate your penalty
The prepayment penalty is the bank's interest loss: the difference between your contractual rate and what the bank would still earn today from a safe reinvestment, over the remaining fixed-rate period.
Banks calculate it using the asset-liability or asset-asset method; special repayment rights and saved costs reduce it. Important: under §489 BGB you may terminate a loan ten years after full disbursement, with six months' notice, without a prepayment penalty.
How do you use the prepayment penalty calculator?
Enter the remaining debt, remaining fixed-rate period, your contractual rate and an assumed reinvestment rate, and the calculator gives a rough estimate based on your figures.
The calculator below gives a rough estimate based on your figures. Not legal or tax advice.
Enter the remaining debt, remaining fixed-rate period, your contractual rate and an assumed reinvestment rate.
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Frequently asked questions
When does a prepayment penalty arise at all?
When you repay a loan with a fixed interest rate before it ends, without a special right of termination applying — typically when selling the property. With variable loans or after the fixed-rate period ends, none arises.
Can I terminate without cost after ten years?
Under §489 BGB you may terminate a loan ten years after full disbursement with six months' notice — without a prepayment penalty, even if the fixed-rate period runs longer.
How accurate is this estimate?
It provides only a rough order of magnitude. The binding calculation is made by your bank using a recognised method. If you suspect an excessive claim, an independent review is worthwhile.
Any questions on this topic?
A first consultation is free and without obligation — the commission is, as a rule, paid by the bank. We tell you what this means for your own financing.
Related pages
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.