Extra Repayment
Also known as: Sondertilgung, additional payment, lump sum repayment
An extra repayment is an additional payment on your loan — beyond the regular monthly installment. It reduces the remaining debt faster and saves you interest.
How much does an extra repayment save?
Example: €200,000 mortgage, 3.5% interest, 30-year term. Without extra repayments, you pay about €123,000 in interest. With €5,000 extra per year, you save about €35,000 in interest and finish 8 years earlier. The earlier in the term you make extra payments, the greater the effect.
Extra repayment vs. investing?
The decision depends on the interest rate. Rule of thumb: if your loan rate is higher than expected returns (6–7% with ETFs), extra repayment is better. With low rates (under 3%), investing may make more sense. But: being debt-free also provides emotional security — that has value.
BudgetHeld says
In the BudgetHeld loan calculator, you can see how extra repayments affect your term and interest costs. In the budget tool, you plan the monthly payment under Housing or Car — extra repayments come from Saving or the Reserve.
Related tools
Loan Calculator →Related Terms
Written by David El Dib — Financial expert & founder of MoneyTalk