What does early loan repayment cost?

Calculate the prepayment penalty (Vorfälligkeitsentschädigung) using the BGH active-passive method (XI ZR 285/03).

Outstanding Balance (€)

Nominal Interest Rate (% p.a.)

Remaining Fixed-Rate Period (months)

Reinvestment Yield — Pfandbriefe (% p.a.)

Current estimate for Pfandbriefe with matching residual maturity. Check the Bundesbank PEX index for up-to-date values.

Bank Processing Fee (€)

Special Termination Right §489 BGB (loan > 10 years)

Loans with terms longer than 10 years can be terminated under §489 (1) No. 2 BGB with a six-month notice — without any prepayment penalty.

Prepayment Penalty

€5,986

Calculation

Interest Margin Damage: €5,656
Administrative Overhead (flat): €30
Processing Fee: €300

Comparison

Interest if Loan Continued to End of Fixed-Rate Period: €15,750
Interest Saving by Early Repayment (before penalty): €9,764

Background

Prepayment Penalty in Germany — How the Active-Passive Method Works

11 Min.

Note

This calculator uses the BGH active-passive method (BGH XI ZR 285/03) with a simplifying assumption (no scheduled amortization during the remaining fixed-rate period — a conservative upper bound). It provides an estimate and does not replace legal advice.

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