Annuity Calculator
Calculate the fixed monthly payment for any loan. Enter the amount, interest rate, and term — and see the full cost breakdown.
Auto-detected · change if incorrect
Monthly Payment
€1,582
fixed payment on a €250,000 loan
Total Payment
€379,590
Total Interest
€129,590
Cost Breakdown
What is an annuity payment?
An annuity payment is a fixed amount paid at regular intervals — in this case, monthly — that covers both the interest due and a portion of the original loan. The word comes from the Latin "annus" (year), but the concept applies to any fixed periodic payment.
The defining feature is that the payment never changes. In month one, most of it goes to interest because the balance is high. In month 240 of a 20-year loan, almost all of it goes to principal because the balance is nearly gone. The total payment stays the same throughout.
The annuity formula
The monthly payment M is calculated as:
Where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). If the interest rate is zero, M simply equals P ÷ n.
This calculator uses this exact formula. Enter your numbers above and the result is instant.
Worked example
€250,000 loan · 4.5% annual rate · 20 years
Monthly payment
€1,583
fixed for 240 months
Total paid
€379,800
over 20 years
Total interest
€129,800
52% of the principal
Choosing a 15-year term instead reduces total interest to about €85,000 — saving €44,800 — but raises the monthly payment to roughly €1,912.
Annuity vs linear repayment
There are two main ways to repay a loan: annuity (annuïteit) and linear (lineair). Most Dutch mortgages and personal loans use the annuity method.
| Annuity | Linear | |
|---|---|---|
| Monthly payment | Fixed throughout | Decreasing over time |
| Early months | Mostly interest | Equal split of principal |
| Total interest | Higher | Lower |
| Predictability | Easy to budget | Harder to budget early on |
| Common use | Mortgages, personal loans | Some Dutch mortgages |
Neither method is strictly better. Annuity gives you a predictable fixed payment. Linear costs less total interest but the payments start higher.
Frequently asked questions
What is the annuity formula?
The annuity formula calculates a fixed periodic payment given a principal, interest rate, and number of periods. Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly rate (annual rate ÷ 12), and n is total months. When r = 0, the payment is simply P ÷ n.
What is the difference between annuity and linear repayment?
With an annuity, the monthly payment is the same every month — interest-heavy at the start, principal-heavy at the end. With linear repayment, you pay the same principal amount each month, so the total payment decreases over time as interest falls. Linear costs less total interest but starts with higher payments.
Does my Dutch mortgage use annuity repayment?
Most Dutch mortgages taken after 2013 must use annuity or linear repayment to qualify for hypotheekrenteaftrek (mortgage interest tax deduction). The annuity method is more common because the fixed payment is easier to budget. Check your mortgage deed (hypotheekakte) if you are not sure.
Can I use this calculator for a personal loan?
Yes. The annuity formula is the same regardless of whether the loan is a mortgage, personal loan (persoonlijke lening), car loan, or any other fixed-term loan. Just enter the loan amount, annual interest rate, and term.
What happens if I make extra repayments?
Extra payments reduce the outstanding principal faster, which reduces the interest component of future payments. On an annuity loan, this means you pay off the loan sooner than the original term. Many Dutch lenders allow boetevrije extra aflossingen (penalty-free extra repayments) of up to 10–20% of the original loan per year — check your loan terms.
Keep exploring
Save Your Results
Enter your email and we'll send you these calculations to review later.