Bauspar vs. Direct Repayment

Calculate the 'insurance premium' you pay for interest rate certainty.

Note: This tool compares direct repayment (annuity) against a Bauspar-linked interest-only model.
Disclaimer: While tested comprehensively, we cannot guarantee absolute correctness. Always consult a professional banking expert for final financing decisions.
General Parameters
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Your total budget for interest + repayment (Scenario A) or interest + Bauspar (Scenario B).
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Scenario A: Direct Repayment
The monthly payment is used to pay interest and directly reduce the principal (Annuity Loan).
Scenario B: Bauspar-Link
Interest is paid on the full loan amount. The remaining monthly payment goes into the Bauspar contract.
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Frequently Asked Questions

In a standard annuity (Scenario A), every Euro repaid saves you the loan interest rate. In the Bauspar model (Scenario B), that same Euro only earns the low savings interest rate (e.g., 0.1%). This spread is the primary cost of the Bauspar strategy.

KfW is a German state-owned investment and development bank. Many home buyers use KfW loans for their low interest rates and combined them with other financing models like Bausparen.

It shows you the "future market rate" needed for the Bauspar model to be mathematically superior. If you think the interest rates in 10 years will be lower than the break-even, direct repayment is likely better.

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Detailed Methodology & Calculation Logic

Scenario A: Direct Repayment (Annuity)

This scenario simulates a standard annuity loan. Every monthly payment is split into interest and principal. Because the principal is reduced every month, the interest portion decreases and the repayment portion increases over time.

  • Phase 1: Fixed interest is applied for the specified binding period.
  • Phase 2: After the binding period, the 'Market Rate After Fix' is applied to the remaining balance until the 30-year term ends.
  • Total Cost: The sum of all interest paid over 360 months.
Scenario B: Bauspar-Link (Interest-Only)

In this model, the loan principal is NOT reduced during the fixed period. Instead, only interest is paid on the full amount, and the remaining budget is saved into a Bauspar contract.

  • Phase 1 (Saving): You pay interest on 100% of the loan. Your savings earn a small interest but are reduced by closing and annual fees.
  • Phase 2 (Loan): At the end of the fix period, your savings are used to pay off part of the loan. The remaining 'Net Debt' is refinanced with the guaranteed Bauspar loan rate.
  • Total Cost: Interest Phase 1 + Interest Phase 2 + Closing Fee + Annual Fees - Savings Interest.
The 'Premium' and Lifetime Break-Even

Premium Paid (Debt Gap): This is the mathematical 'cost of certainty'. Because you don't repay the loan directly in Scenario B, you lose the 'saved interest' on that principal. This leads to a higher remaining debt after 10 years. We display this as the 'Premium' you pay to secure a future interest rate today.

Lifetime Break-Even: We use a binary search algorithm to find the exact future market rate where the higher debt in Scenario B is perfectly compensated by the guaranteed lower interest rate over the full 30-year term. If you expect future rates to be higher than this value, the Bauspar model is mathematically superior.

Last updated: 2026-03-26