Explanation of Terms

Total Amount

The loan amount represents the total sum borrowed from the lender, which must ultimately be repaid with interest over the term of the loan.

Personal Contribution

Your own contribution that does not need to be repaid. This can be your own funds or financial support from third parties, such as government grants or other institutions, to reduce the required loan amount and make the credit more affordable.

Loan

This is the repayable amount, which includes the loan sum minus any grants or subsidies (such as a "grant"). It is the total sum for which the borrower is responsible during the loan term.

Initial Repayment Rate

Short for "initial repayment rate," this refers to the initial rate of principal repayment. It is the percentage of the loan amount that is paid back in the first year, excluding interest. This rate can be adjusted over time but starts as a fixed percentage to determine the initial monthly payments.

Annual Nominal Interest Rate

This term refers to the nominal annual interest rate (or "fixed rate") applied to the loan amount, excluding fees or compound interest. It is the stated interest rate used to calculate regular interest payments for the loan.

Payment Periods

"Payment periods" are the payment intervals or installment intervals in which payments are made, usually monthly, quarterly, or annually. For a loan with monthly payments, the payment period would be every month, for example.

In Years

"In years" refers to the loan term or duration over which the loan is repaid. This is usually agreed upon when the loan is finalized and determines how long the borrower has to repay the entire amount including interest.

Annuity (monthly rate)

An "annuity," often referred to as an annuity payment or monthly installment, is a fixed monthly payment amount that includes both interest and principal repayment. With an annuity loan, the monthly rate remains constant, but over time, the proportion of principal repayment increases while the interest portion decreases.

About us and the history of this website

I am an engineer, developer and father in the process of buying and renovating our very own house. Due to the struggles we faced, we have developed our own tools in the process to help us calculate and balance our loans as well as make financial predictions. To make your life easier, we have decided to build this website and provide our tooling to the world. Hope you find it helpful!

If this website is helpful to you, please consider supporting us by sharing it with your friends and family, or by buying us a coffee to help us cover the costs of hosting and development.

Enjoy your home buying and renovation journey, and we hope our tools can make it a little easier for you!

Cheers,

Alex