Compare annuity and equal-principal repayment, see the amortization table and how much you'd save by paying extra.
| Year | Principal | Interest | Balance | Ratio |
|---|
| Year | Principal | Interest | Balance | Ratio |
|---|
Annuity — the payment stays the same throughout; you pay more interest and less principal at the start (easier on the budget early on, but you pay more interest in total). Equal principal — the principal portion is fixed, the payment is higher at the start and decreases every month (harder at first, but you pay less interest in total).
Indicative calculation (fixed annual rate for the whole term, excluding insurance/administration fees) — your bank's actual offer may differ. Not financial advice.
With equal principal you pay less interest in total, because the loan balance decreases faster in the early years. However, the initial payment is higher than with the annuity method.
Every extra euro directly reduces the loan balance that interest is calculated on — even a small extra payment over a long term can save thousands of euros in interest and shorten the loan term.
No, the calculator shows only the principal and interest portion of the loan. A bank's offer may additionally include property insurance, administration fees, etc.
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