Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Payment protection insurance (Restschuldversicherung)
Insurance that repays the loan on death or unemployment.
In plain language
This insurance takes over the instalments or repays the loan if you die, become unable to work or lose your job. It is often offered together with the loan. Watch one thing: if taking it out was a condition for getting the loan at all, the bank must include its premium in the annual percentage rate. Only then can two offers be compared.
In detail
Payment protection insurance covers death, incapacity for work and unemployment, depending on the tariff. Whether its premium enters the annual percentage rate is decided by § 16 (3) and (4) no. 2 PAngV: it counts towards total costs if taking it out was a mandatory condition for granting the credit, or for granting it on the advertised terms. If it is voluntary it stays outside — and that is precisely the comparison trap: two offers with an identical annual percentage rate can differ by several thousand euros if one contains a voluntary policy. The calculator therefore only includes the premium when it is entered as a condition of the loan.
Worked example
250.000 € at 3,75 % with 2 % initial repayment: without payment protection insurance the annual percentage rate is 3,82 %. Include a 6.000 € premium demanded as a condition of the loan and it rises to 4,03 % — the monthly instalment stays at 1.197,92 €, but the loan is 0,21 percentage points more expensive than the contractual rate suggests.
In brief
Its premium counts towards the effective annual rate only where it was a condition of granting the loan.
Legal basis: § 16 Abs. 3 and Abs. 4 Nr. 2 PAngV · as at 2026