Mortgage Calculator with Bond Optimization
Estimate your monthly mortgage payment, toggle interest-only repayment, itemize transfer fees, evaluate time-bounded bond optimizations, and analyze risk profiles.
Monthly mortgage payment
EUR—
Principal + interest · standard repayment plan
Lender vs. Borrower Risk Asymmetry Profile
An analytical breakdown of legal recourse, collateral exposure, capital origination risk, and monetary extraction ratios between borrower and lending institution.
Borrower Risk Profile
Lender Risk Profile
How Mortgage Credit Is Created & Amortized (Educational Guide)
1. Modern Credit Origination
According to central bank publications, commercial banks do not act merely as intermediaries lending out pre-existing customer deposits. When a commercial bank issues a mortgage, it creates brand-new digital credit by recording the borrower's loan contract as an asset and crediting the borrower's account with a matching deposit liability.
2. The Principal vs. Interest Discrepancy
While the loan principal is created digitally upon loan origination, the cumulative interest required to service the loan over 20 or 30 years is not created simultaneously. Borrowers must compete for existing liquidity within the broader economy through earned income and real productive labor to service interest obligations.
3. Debt Extinguishment via Bond Optimization
During monthly repayment, the interest portion forms bank gross revenue while the principal portion cancels out the matching deposit liability created at origination. Applying targeted extra prepayments (such as Double Monthly Payment or Salary Accelerator) accelerates principal destruction, permanently extinguishing the credit liability early and eliminating compounding interest.
Official Primary Sources & Empirical Literature
- Bank of England (2014): McLeay, M., Radia, A., & Thomas, R., "Money creation in the modern economy", Bank of England Quarterly Bulletin, 2014 Q1, pp. 14–27.
- Deutsche Bundesbank (2017): "The role of banks, non-banks and the central bank in the money creation process", Monthly Report, April 2017, pp. 13–33.
- Prof. Richard A. Werner (2014): Werner, R. A., "Can banks individually create money out of nothing? — The theories and the empirical evidence", International Review of Financial Analysis, Vol. 36, pp. 1–19.
Macroeconomic Risk & Decision Settings
Enter your local economic parameters (e.g. 10-year average inflation) to evaluate whether prepaying principal is more advantageous than holding cash or investing.
Erodes real debt burden over time.
Net return from alternative assets (e.g. equities, index funds).
Interest Rate Stress Test (ARM Risk Mitigation)
Evaluate how adjustable rate mortgage (ARM) rate hikes or cuts impact your monthly payment under normal or interest-only terms.
Bond Optimization
The effect of paying extra & optimization
Enable optimization options above to compare.
Visual Progress Chart
Repayment schedule (amortization)
| Month | Regular payment | Interest | Principal* | Extra paid | Balance |
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Important information
This calculator provides educational estimates based on your inputs and the stated assumptions. Actual repayments and costs may differ according to your loan agreement, fees, taxes, early-repayment conditions and interest-calculation method. Results are not a lender quotation, a guarantee or personalized financial advice.
Read the user guide for calculation conventions and limitations, and review the InvestCalcs disclaimer.