Playfully test different interest rate scenarios, repayment rates and terms with ease.
- Calculate monthly rate based on loan amount, interest rate and amortization
- Calculate the total repayment period of the annuity loan
- Visualization of repayment history and creation of a repayment schedule
The free construction interest calculator allows a quick and easy calculation of individual conditions, if all relevant corner data are entered and this without any obligations. In this way, everyone can get an overview of the costs associated with different criteria, such as the interest rate and the amount of the requested loan costs.
If you objectively assess your own financial scope, you can use the results of the interest calculator to find out what is financially feasible and give yourself a high degree of planning security.
Help to operate the construction interest calculator
In the first category you should enter the amount of the loan. This includes all costs associated with financing the construction of the property. Thus, not only the pure purchase price of an existing property plays a role, but also all the incidental costs incurred. Even the financing of a new construction project via a builder or a private construction company involves much higher costs than originally stated. Those who are building a new home must calculate additional costs in the form of interest on the loan, which is always incurred when loan amounts are requested in individual tranches, in accordance with the progress of construction, and for the last time at the final acceptance of construction. Banks must borrow in the capital markets and recover the lost interest from the borrower in the form of commitment fees.
Add to this the cost of maintaining a construction account set up specifically for this financial transaction and the cost of making partial payments. Basically, you will also have to pay notary fees and land registry costs, which will be added to the total cost of the property. If you haven't saved up your own capital early on, you absolutely have to include these additional costs in the calculation using the construction interest calculator and enter them as a total item in the input field.
Fixed interest rate – input field with great importance
In this input field the future borrower can enter his desired interest rate fixation. In times of low interest rates, it is advisable to opt for a long interest rate lock-in, which eliminates the risk of interest rates rising during the term of the bond. At the same time, the residual debt for follow-up financing is correspondingly lower than with a comparatively short fixed-interest period of five or ten years. If you want to secure the currently still favorable construction interest rates, you should enter a fixed-interest period of 15 or more years in the field. According to forecasts by financial experts for 2022, interest rates will continue to rise in the short term in order to curb inflation. In addition, the construction rate calculator can be used to enter the date of the first installment payment.
Repayment of the loan – individual options
In the second section of the construction interest calculator, you can click on either the monthly rate including interest or the initial repayment rate. When it comes to the monthly rate, the consumer must first put his or her own economic room for maneuver to the test. All current expenses must be compared to the continuous income, without special surcharges. The difference reflects the financial leeway that can be made available for the monthly payment installment. However, everyone should plan for unforeseeable expenses, which can quickly lead to a financial bottleneck if the calculation is tight.
The repayment rate does not have to correspond to the usual initial repayment rate of only one percent. If you want to avoid mammoth terms and can save money through a low construction interest rate, you should invest this money in a higher amortization rate. This way you can reduce interest costs and shorten the way to a debt-free home. If you are not sure, you can enter different numbers to get an idea of the cost.