Calculate annual costs
Easily calculate your monthly and annual payments for a loan or mortgage (annuity).
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What are the annual costs?
Annual costs are the total costs you pay per year for a loan or mortgage. These usually consist of interest and principal repayment. With an annuity loan, you pay the same amount every month.
How are annual costs calculated?
The monthly payment for an annuity loan is calculated using the formula:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Whereby:
- P = loan amount
- r = monthly interest (annual interest / 12)
- n = total number of months
The annual cost is then: monthly cost × 12 .
When do you use this calculator?
- When calculating mortgage costs
- With personal loans
- When comparing interest rates
- In financial planning
Frequently Asked Questions
Is this gross or net?
The tool calculates both gross annual costs and an indication of the net annual cost based on the entered tax rate. The net calculation is an approximation based on the interest rate in the first year.
Can I also calculate other types of loans?
This tool is based on an annuity loan.