Repayment Rate
Also known as: loan repayment, amortization, Tilgungsrate
The repayment rate is the amount you pay monthly to pay back a loan. It consists of two parts: principal (debt reduction) and interest (cost of the loan).
How much repayment is healthy?
Rule of thumb: all loan payments combined should not exceed 30–35% of your net income. Above that, things get tight. In BudgetHeld, you see this in your living costs — leasing, loan payments, and mortgage are all part of it.
How does repayment work?
At the beginning, you pay more interest and little principal. Over time, the ratio flips: the remaining debt decreases, so interest decreases, and more of your payment goes toward actual repayment. With a 30-year mortgage, you pay almost only interest in the first years.
BudgetHeld says
In the BudgetHeld loan calculator, you see exactly how your payment splits over the term — and how much interest you pay in total. In the budget tool, you enter the monthly payment under 'Housing' (mortgage) or 'Car' (leasing).
Related tools
Loan Calculator →Related Terms
Written by David El Dib — Financial expert & founder of MoneyTalk