Advertisement

Germany: revolving credit is the expensive way to do this

The first thing to say about a German card balance is that most people do not have one. The standard German card is a charge card: the full balance is collected by direct debit from the current account once a month, and no interest arises at all. Where a revolving option exists it is usually opt-in, and the calculator's minimum-payment mode only describes what happens once it is switched on.

That matters because Germany has a much cheaper alternative sitting next to it. A Ratenkredit, a fixed instalment loan from a bank, is the normal way to carry a large purchase here, and it is typically priced several points below revolving card credit with a fixed term and a fixed payment. Anyone modelling a German card balance over more than a few months is usually modelling the wrong product; the loan calculator is the better tool.

Germany sets no statutory interest cap. Courts instead treat a rate roughly double the market average, or more than about twelve points above it, as usurious under section 138 of the Burgerliches Gesetzbuch, which voids the contract. It is a soft ceiling and it moves with the market.

Revolving credit here typically requires about 3% of the balance a month, with the interest taken from within that payment and a floor of about €25.

For how the calculation works, the formula behind it and what it leaves out, see the full guide.

Data sources

  • German consumer finance conventions

    Effective 2031-01-01 onward · retrieved 2026-08-30

    The retirement age reaches 67 in stages; 67 applies fully to those born from 1964.

    How we checked these figures

    Deutsche Rentenversicherung publishes 67 as the standard retirement age for cohorts born in 1964 and later.

    Current

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page with the official sources they came from.

CentExact Editorial · Research & verification

Every CentExact calculator is built from the published finance formula, tested against spreadsheet, lender and tax-authority figures, and reviewed when the underlying rates or rules change.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.