Loan prepayment penalty calculator for early repayment
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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Calculating the prepayment penalty: what makes up the amount in the calculator?
The prepayment penalty is the bank’s interest loss: the difference between your contract rate and what the bank could still obtain today from a safe reinvestment, over the remaining fixed-rate period.
Around the repayment: Does the switch pay off despite the penalty? Refinancing a property loan.
Is the prepayment penalty too high — and how do you check? The bank may only claim its actual interest loss; special repayment rights and saved administration and risk costs reduce it — if you suspect an excessive claim, an independent review is worthwhile.
Mortgage calculator for early repayment: which interest loss is the penalty based on?
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.
Special repayment and three other ways: when do you repay without a penalty?
Free of penalty are termination after ten years from full disbursement (§ 489 BGB), repayment at the end of the fixed-rate period and special repayment within the agreed limit. If the withdrawal information was defective, a right of withdrawal may continue to exist.
Ten years have passed. Ten years after full disbursement, there is a statutory right of termination with six months’ notice (§ 489 BGB) — free of penalty, regardless of how long the fixed-rate period still runs. With a 15- or 20-year fixed-rate period, this is the most important exit point of all. The fixed-rate period ends anyway. At the end of the fixed-rate period, repayment is free.
Special repayment. The agreed annual limit is free of penalty — it also reduces the calculation basis if the loan is repaid later after all. Defective withdrawal information. If it is inadequate in the contract, a right of withdrawal may continue to exist. Whether that applies in your case is a legal question — for that you need a lawyer, not financing advice (§ 2 RDG).
The calculator provides a rough estimate, not a recalculation. Banks use different methods, and the bank is obliged to disclose its calculation. When a repayment is coming up — sale, separation, refinancing — we work out together whether it pays off despite the penalty. Often it does.
Calculating the early repayment penalty: What methods do banks use?
Banks calculate this using either the asset-liability or the asset-asset method. In each case, the basis is the bank’s loss of interest income, which it may only charge up to the actual amount incurred. Special repayment rights (Sondertilgungsrechte), as well as savings on administrative and risk costs (Risikokosten), reduce the amount. The calculator provides only a very rough estimate; it is not a legally binding calculation.
Early repayment charges on a loan: When do you pay nothing at all? Ten years after the loan has been paid out in full, you can terminate the agreement with six months’ notice without incurring any early repayment charges (Section 489 of the German Civil Code (BGB)), regardless of how long the fixed-interest period has left to run. Repayment is also free of charge upon expiry of the fixed-interest period. If market interest rates have risen since the loan was taken out, the penalty may be very small or even zero.
Keep this result: how do you get the checklist with the right documents?
A calculator gives you a number. A financing decision needs the right paperwork ready before you talk to a bank. We'll send you the checklist that matches your situation — free, no sales call attached.
Need the blank forms right now? Get them via a quick form: self-disclosure form (DE/EN) · net-worth statement (DE/EN).
Open the file directly — no form: Germany property financing checklist (PDF, 9 pages) (Nederlands · Français) · Non-resident mortgage checklist (PDF, 9 pages) (Nederlands · Français) · KfW funding overview 2026 (PDF, 4 pages) (Nederlands)
Frequently asked questions
Early repayment penalty calculator with unscheduled repayments: How do unscheduled repayment rights reduce the amount?
Special repayment rights (Sondertilgungsrechte) reduce the bank’s interest loss and thus the compensation payable, as do savings on administrative and risk costs (Risikokosten). The extent of this reduction depends on your contract and the bank’s method. The calculator provides only a very rough estimate; it is not a legally binding calculation.
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.
Not legal or tax advice.
Related pages
Self-disclosure (DE/EN)
Self-disclosure form for the bank: an overview of all 13 sections and 80 fields, plus the fillable template (DE/EN) available free of charge as a PDF — either directly or by email.
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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.
