Annuity Loans

An annuity loan is a loan, which is paid back in constant rates. Usually an annuity credit is used for real-estate credits. The rate which can be paid is called annuity A and is the sum of interest payment ZZ and amortization payment TZ. Since by the repayment the credit sum K decreases, also the interest which has to be paid becomes lower, thereby the repayment part TZ in A rises.

A = ZZ + TZ. Because A is constant by definition, TZ rises if ZZ sinks.

The formula for the computation of the annuity generally reads like this:

Formel zur Annuity 

Quelle: Artikel Annuitaetendarlehen. In: Wikipedia, Die freie Enzyklopaedie. Bearbeitungsstand: 11. November 2005, 08:25 UTC. URL: (Abgerufen: 2. Januar 2006, 20:48 UTC)

Because not everyone likes math, here is a web-formular to answer different questions in the annuity credit scope: