Estimate the prepayment penalty
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 much is the early repayment penalty for paying off a mortgage ahead of schedule?
The early repayment penalty (Vorfälligkeitsentschädigung) is not a fine — it's compensation for the interest loss the bank incurs from early repayment, and by law it may only claim the actual damage, no more (§490(2), §502 German Civil Code). It's based on the gap between your contract rate and what the bank can earn by reinvesting the repaid capital over the remaining term; the bigger that gap and the longer the remaining term, the higher the penalty. After ten years of a fixed-rate period, German law grants a special termination right (§489 BGB) with six months' notice — with no penalty at all. Before that ten-year mark, it's worth comparing alternatives such as a forward loan, extra repayments, or renting out instead of selling. The calculator below gives a rough estimate based on your figures. Not legal or tax advice.
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.
Rough order of magnitude
Enter the remaining debt, remaining fixed-rate period, your contractual rate and an assumed reinvestment rate.
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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Around early repayment
Follow-up & refinancing
When switching pays off — and how a forward loan secures the rate.
Follow-up & refinancing →Calculate remaining debt
How high the remaining debt is at the repayment date.
Calculate remaining debt →Frequently asked questions about the prepayment penalty
When does a prepayment penalty arise at all?
Can I terminate without cost after ten years?
How accurate is this estimate?
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