The constant interest rate, also called annuity by experts, consists of interest and repayment. The decisive factor for repayment is the term of the loan. Once the purchase price and the amount of the construction loan have been set, you should not look directly for the cheapest interest rate, but first, answer the question of when you want to be debt-free again. Reason: Due to the lower interest rate, the pension and therefore the monthly rate is lower – it takes longer for the loan to be repaid.

The value of all repayments must correspond to the loan granted, ie the present value is zero. Repayment calculator (full repayment of the loan within the fixed period) Repayment calculator for building finance Repayment calculator for real estate in general (also purchase) Calculate the interest calculator online.

## Calculate interest and repayment – How it works for an annual fee loan

In practice, many people have learned how to calculate the interest or repayment of an annual allowance. The house bank often brings an annuity loan as a repayment method. For the consumer, the advantage of an annuity loan is that he knows in advance exactly how high the monthly load is, the so-called pension.

This is determined at the beginning and consists of interest and repayment. An annuity has a fixed duration at the beginning and can no longer be submitted later. In this example, a loan amount of USD 10,000 is calculated with an interest rate of 5% and a maturity of 10 years.

So now you get a pension of USD 1,500 a year and that won’t change. The pension will no longer be canceled.

However, interest rates and repayments change every year, so that after the first year you only have to pay interest of USD 9000, which of course increases the repayment in the form of the difference to the pension.

## Calculation of annuities, annuity loan interest, learning repayment

When calculating the annuity for an annuity loan, the repayment of a loan or loan is calculated using the same installment payment. If this is the case, we speak of a pension. Find out more about interest and repayments here, get a sample calculation for an annuity loan.

The loan term is calculated from the interest, the repayment rate and the amount of the capital raised. Below is a step-by-step guide with an example and how to calculate the annuity of an annuity loan.

Example: The capital amount of an annuity loan is 100,000.00, the rate of interest is 5.65 percent and the initial repayment amount is 1.35 percent. Calculate the constant pension!

Level 2 – In the second level, the default interest is calculated on the basis of the loan amount. In the present example, the interest is calculated as follows: The interest for the first year is thus 5,650.00.

## The annual fee is calculated as follows

The annual fee has remained the same every year. However, the interest and principal portions change. In our example, the repayment portion is 1,350.00 in the first year.

Level 5 – At the end of the financial year, the repayment is netted with the loan amount at the beginning of the financial year and represents the loan at the end of the financial year. In the example: The loan at the end of a year or a term makes the loan business. Here you can see the example for calculating an annuity loan as an Excel template.