Kalkulator FIRE
Dowiedz się, ile musisz zainwestować, aby uzyskać zwroty, aby pokryć 100% wydatków!
Kalkulator Twojej niezależności finansowej
Results
New monthly instalment
—
/mo
—
Loan term
—
—
—
Total interest savings
—
Compared to current scenario
Before prepayment
—
/mo
After prepayment
—
/mo
Outstanding balance
—
Outstanding balance
—
Remaining term
—
Remaining term
—
Total remaining interest
—
Total remaining interest
—
Interest rate (ANR)
—
Interest rate (ANR)
—
Current scenario vs. after prepayment
Total capital (in euros €)
Years
Before
After prepayment
Amortisation schedule
Month
Instalment
Interest
Principal repaid
Outstanding balance
These results are simulations and do not constitute any form of financial advice.
Glossary
What is an early loan prepayment?
An early prepayment is the payment of part (partial prepayment) or all (full prepayment) of your outstanding loan balance before the end of the contracted term. By reducing the outstanding balance, you also reduce the interest you would pay on that amount until the end of the contract.
Example: Imagine you have €150,000 in outstanding balance at an ANR (annual nominal rate) of 4.5% over 25 years. If you prepay €10,000 today, the bank will calculate interest on €140,000 — not €150,000. That difference, multiplied by all the remaining months, translates into thousands of euros saved in interest. To see the full schedule of your loan month by month, switch to the Amortisation schedule tab in the calculator above.
Reduce the instalment or reduce the term?
After a partial prepayment, the bank usually offers you two options:
- Reduce the instalment: the original term is maintained, but the monthly instalment decreases. Useful if you want to ease your monthly budget.
- Reduce the term: the instalment amount stays the same, but you finish paying off the loan sooner. This is the option that generates the greatest total interest savings, because you shorten the period during which the bank charges you interest.
In purely mathematical terms, reducing the term always saves more interest. However, reducing the instalment gives you more short-term flexibility — and that monthly breathing room can be channelled into investing, making further prepayments, or building an emergency fund.
How does this tool work?
This calculator lets you enter the current outstanding balance, the ANR on your loan, the remaining term, and the amount you wish to prepay. Based on this data, it calculates:
- The new monthly instalment (or the new term, depending on the chosen option)
- The total interest savings compared to the current scenario
- The full schedule before and after the prepayment
The results assume the ANR remains constant until the end of the contract. For variable-rate loans (e.g. indexed to Euribor), actual values will vary with each rate revision.
Related tools (suggestion)
- Compound interest calculator — see how a lump sum or regular contributions grow over time. Useful for comparing the interest you'd save by prepaying against the return you could earn by investing the same money.
- FIRE calculator — estimate how much you need to invest, and for how long, to reach financial independence.
- How and where to invest €100, €1,000 or €10,000 — a practical guide to putting spare cash to work instead of, or alongside, prepaying.
Formulas used
The calculator uses the classic French amortisation formula (constant instalments):
Instalment = C × [i × (1 + i)n] / [(1 + i)n − 1]
Where:
- C: Outstanding balance
- i: Monthly interest rate (annual ANR divided by 12)
- n: Total number of remaining instalments (in months)
To calculate the interest savings, the calculator compares the total interest paid in the original scenario with the total interest paid after the prepayment (including the interest on the remaining schedule).
Note: The ANR is converted to a monthly rate by dividing by 12. For example, an ANR of 4.5% corresponds to a monthly rate of 0.375% (4.5% / 12).
Is it always worth prepaying?
Prepaying reduces interest, but it's not always the best financial decision. Before proceeding, consider:
- Opportunity cost: if the rate on your loan is 4.5%, but you could earn a higher long-term return by investing the same money — for example in a diversified ETF — investing may build more wealth than the interest you'd save. Historically, broad equity indices have returned more than that over long periods, though returns are never guaranteed and come with volatility.
- Early repayment cost: under the EU Mortgage Credit Directive you generally have the right to repay early, but lenders may charge an early-repayment compensation. The cap and the rules vary by country (some limit it to a small percentage of the amount repaid; some waive it for variable-rate loans). Check your loan agreement and the overall cost of credit (APRC) before deciding.
- Emergency fund: never drain your emergency fund to prepay. Keep at least 3 to 6 months of expenses somewhere liquid and low-risk, such as a high-yield savings account.
- Tax relief: in some European countries, mortgage interest is partly deductible or subsidised (for example, the Netherlands' mortgage interest relief). Where that applies, part of your interest "cost" is offset by the state, which lowers the benefit of prepaying. Check your national rules.
- Renegotiation as an alternative (or complement): if your rate is well above current market rates, renegotiating or refinancing with your bank may save you more than a one-off prepayment — and you can still do both.
Final note
Early prepayment is one of the most effective ways to cut the total interest on your loan. But if you're still building your financial foundation, it's worth getting the basics right first — see our beginner's guide to personal finance in Europe. The right decision depends on your loan's interest rate, your wider financial situation, and the alternatives available to you.
Before prepaying, always do the maths: sometimes investing the same amount can build more wealth in the long run than the interest you would save.
Używamy plików cookie, aby poprawić komfort korzystania z naszej strony internetowej. Proszę zobaczyć nasze polityka prywatności.