Danish mortgage credit calculator with price, contribution and interest-only period
The payment on a Danish mortgage credit loan (realkreditlån) consists of several parts. Interest, the administration contribution, repayments and set-up costs affect the economics, and the bond price affects the amount that is paid out. Here you can examine the connection with your own assumptions.
Worked example
- Principal: 1,000,000.00 DKK
- Price: 98
- Interest rate: 4 %
- Term: 30 years
- Margin rate: 0.8 % per year
- Interest-only period: 10 years
Proceeds
980,000 DKK
First payment 12,000 DKK per installment · after the interest-only period 20,219 DKK · total payment 2,029,010 DKK · remaining debt at the end 0 DKK
| Year | Paid | Remaining debt |
|---|---|---|
| 1 | 48,000 DKK | 1,000,000 DKK |
| 2 | 48,000 DKK | 1,000,000 DKK |
| 3 | 48,000 DKK | 1,000,000 DKK |
| 4 | 48,000 DKK | 1,000,000 DKK |
| 5 | 48,000 DKK | 1,000,000 DKK |
| 6 | 48,000 DKK | 1,000,000 DKK |
| 7 | 48,000 DKK | 1,000,000 DKK |
| 8 | 48,000 DKK | 1,000,000 DKK |
| 9 | 48,000 DKK | 1,000,000 DKK |
| 10 | 48,000 DKK | 1,000,000 DKK |
| 11 | 80,776 DKK | 966,628 DKK |
| 12 | 80,505 DKK | 931,901 DKK |
| 13 | 80,223 DKK | 895,764 DKK |
| 14 | 79,930 DKK | 858,160 DKK |
| 15 | 79,624 DKK | 819,029 DKK |
| 16 | 79,306 DKK | 778,309 DKK |
| 17 | 78,976 DKK | 735,936 DKK |
| 18 | 78,632 DKK | 691,842 DKK |
| 19 | 78,274 DKK | 645,958 DKK |
| 20 | 77,901 DKK | 598,210 DKK |
| 21 | 77,513 DKK | 548,524 DKK |
| 22 | 77,110 DKK | 496,821 DKK |
| 23 | 76,690 DKK | 443,018 DKK |
| 24 | 76,253 DKK | 387,030 DKK |
| 25 | 75,798 DKK | 328,769 DKK |
| 26 | 75,325 DKK | 268,143 DKK |
| 27 | 74,833 DKK | 205,055 DKK |
| 28 | 74,321 DKK | 139,405 DKK |
| 29 | 73,787 DKK | 71,089 DKK |
| 30 | 73,233 DKK | 0 DKK |
Before tax, four payments a year and a fixed rate. The margin is charged on the remaining debt.
Principal is not the same as proceeds
The principal is the nominal size of the loan. The proceeds are the amount available after, among other things, the price and costs. Two loans with the same principal can therefore give different payouts.
The calculator also shows the remaining debt and payments through the period. An interest-only period changes when the repayments are made. The debt does not disappear because the regular payment is lower at the beginning.
Guide to reading a loan offer
Find price, interest and contribution separately
Use the details from the actual offer. The contribution can depend on the loan-to-value ratio and the type of loan. A general interest figure is therefore not enough to reproduce the total payment.
Example of price proceeds
A principal of 1 million DKK at a price of 98 gives 980,000 DKK before other costs. If you need a specific amount paid out, the necessary principal can therefore be larger.
Results are shown before tax unless a separately documented calculation is chosen. With variable interest rates, future payments are scenarios. Try a higher interest rate to see how sensitive the budget is. If you want to compare loans with a later sale, redemption and remaining debt must be included as well. An actual offer from the lender is needed to know the real terms and costs.