Annuität

Annuität is a German term referring to a fixed periodic payment, typically made over a set number of periods, that includes both principal and interest. This payment structure is commonly used in loans, such as mortgages, and in annuities, which are financial instruments that provide a stream of income.

The defining characteristic of an annuität is that the total payment amount remains constant throughout the loan or annuity term. However, the proportion of this payment allocated to interest and principal changes over time. In the early stages of a loan, a larger portion of the payment goes towards interest, while a smaller portion reduces the principal balance. As the loan progresses, this ratio shifts, with a greater portion of the payment applied to the principal and a decreasing amount going to interest.

This amortization schedule ensures that by the end of the term, the entire principal amount is repaid along with all accrued interest. Annuities work in reverse, where contributions are made over time, and then regular payouts are received, with each payout consisting of both returns on investment and a portion of the principal investment.

The calculation of an annuität is based on the loan amount or investment sum, the interest rate, and the duration of the repayment or payout period. Understanding the annuität is crucial for borrowers and investors to accurately assess their financial obligations or expected returns.