Acquisition costs
One-off costs in addition to property price, such as taxes, legal work and possibly brokerage. Amount and composition depend on the case.
Example
On an early resale, buying and selling costs can exceed appreciation.
PLAIN-LANGUAGE GLOSSARY
Financial terms without the jargon.
Definitions, examples and the calculator where each term becomes useful.
152 results
Affordability
A household’s ability to sustain payments alongside other obligations and reserves.
Example
A lender maximum is not automatically a personally sustainable budget.
Amortisation
The part of a loan payment that reduces the balance. Principal repayment is a balance-sheet shift, not automatically an economic cost.
Example
With a €1,500 payment and €1,000 interest, €500 repays principal.
Annual heat demand
Heat required by a building over a year for space heating and possibly hot water.
Example
18,000 kWh heat at seasonal performance 3 needs 6,000 kWh electricity.
Annual mileage
Expected distance per year; it scales energy, maintenance and sometimes resale effects.
Example
20,000 rather than 10,000 km doubles modelled energy cost at the same consumption.
Annuity
Regular level payment made up of interest and principal in an amortising loan.
Example
As the balance falls, the interest share declines and principal share rises.
Annuity payment
Level payment that amortises a loan over a specified rate and term.
Example
At zero interest, the payment is simply loan amount divided by number of months.
Assumption freshness
Age of an input since its source was last verified.
Example
A six-month-old loan offer should be rechecked before deciding.
Autonomy rate
Share of own electricity consumption covered by on-site generation.
Example
4,000 kWh self-supplied on 5,000 kWh use gives 80% autonomy.
Balance at horizon
Loan amount outstanding at the end of the comparison period.
Example
A €250,000 balance must be deducted from property value.
Balloon payment
Large payment at the end of finance that lowers monthly payments but keeps the balance and interest base higher for longer.
Example
Finance with a €15,000 balloon needs cash or refinancing at the end.
Balloon risk
Risk that cash or sale proceeds do not cover a large final payment.
Example
€15,000 proceeds against an €18,000 balloon creates a €3,000 shortfall.
Bank Lending Survey
Recurring survey of credit supply, standards and demand; not a loan-price database.
Example
+7% net measures response balances, not seven rate points.
Battery storage
System that shifts electrical energy from one time to another.
Example
A battery creates no energy; value comes from the price difference on shifted kWh.
Battery throughput
Energy actually charged and discharged over a period.
Example
10 kWh times 200 full cycles gives 2,000 kWh annual throughput.
Borrowing rate
Contractual rate applied to the outstanding balance, excluding some costs included in APR.
Example
A 4.2% borrowing rate can produce a higher APR when mandatory fees apply.
Break-even
Value or time at which two options are mathematically equal.
Example
At 5.2% return, repaying and investing may have the same modelled end value.
Break-even holding period
Time at which the ownership path reaches the renting path under current assumptions.
Example
With an eight-year crossover, a planned sale after four years is a different scenario.
Brokerage fee
Commission for brokerage services when it applies to the purchase.
Example
A 3% commission on €450,000 is €13,500 before possible taxes.
CAGR
Constant annualised growth rate connecting a start and end value over a period.
Example
Growth from 100 to 121 over two years equals 10% CAGR.
Cash flow
Cash inflow or outflow assigned to a time; timing and sign are fundamental in financial models.
Example
An investment today is negative; later savings are positive cash flows.
Cash-flow timing
Date or period when cash enters or leaves and is discounted.
Example
€5,000 today weighs more in NPV than €5,000 in ten years.
Charge cycle
Cumulative charging and discharging equal to one full usable capacity.
Example
Two half discharges amount to roughly one full cycle.
Climate-speed bonus
Additional support component with eligibility conditions and time-dependent rate.
Example
16% through January 2027 does not automatically apply to every household.
Comparison horizon
Common period over which both alternatives are evaluated.
Example
Five years of ownership cannot be compared with three years of leasing without a follow-on assumption.
Compound interest
Returns are added to capital and generate their own future returns.
Example
€100 grows to €105 at 5%, then to €110.25 the following year.
COP
Instantaneous ratio of heat output to electricity input under specified conditions.
Example
A laboratory COP of 4 is not automatically a seasonal performance of 4.
Cost per kilometre
Total cost over the period divided by distance travelled.
Example
€24,000 over 60,000 km equals €0.40 per kilometre.
Credit approval
Individual lender decision after its assessment; not a calculator outcome.
Example
A mathematical budget of €400,000 does not guarantee finance.
Credit standard
A bank’s internal criteria for approving loans.
Example
Tighter standards may raise requirements but do not determine an individual case.
Decision readiness
Degree to which sources, assumptions, risks and contract questions are resolved.
Example
An outcome is not decision-ready when the balloon is unknown.
Deflation
Decline in the general price level, which can change real debt burdens and incentives.
Example
When prices fall, the real purchasing power of an unchanged cash amount rises.
Degradation
Gradual decline in output or usable capacity over time.
Example
At 0.5% annual PV degradation, modelled production is slightly lower each year.
Degradation rate
Assumed annual decline in production or usable capacity.
Example
2% annually leaves about 81.7% after ten years.
Delivery cost
Cost of transport, preparation or delivery that may be quoted separately.
Example
A €1,190 delivery fee adds roughly €33 to the effective monthly payment over 36 months.
Deposit facility
Rate paid on banks’ overnight deposits with the Eurosystem.
Example
On 23 July 2026 it was 2.25% and served only as macro context.
Depreciation
Purchase price less later net sale proceeds. For ownership it is often a larger cost block than maintenance alone.
Example
If resale value falls by €3,000, economic vehicle cost rises by the same amount.
Discount rate
Rate used to discount future cash flows to today.
Example
A higher discount rate reduces the present value of distant cash flows.
Discounted payback
Time until discounted inflows recover the investment.
Example
With a positive discount rate, discounted payback is longer than simple payback.
Down payment
Part of the purchase price paid from own liquid funds rather than debt.
Example
A 20% down payment on €400,000 is €80,000 before acquisition costs.
Downside scenario
Plausible adverse combination of key uncertain assumptions.
Example
A −5% return tests whether investing remains tolerable under loss.
Early repayment charge
Possible fee for repaying a loan early under the specific contract rules.
Example
A €1,500 exit fee must be compared with future interest savings.
ECB key rate
Umbrella term for Eurosystem policy rates; not a personal loan rate.
Example
A 2.4% key rate must not be entered as an offered APR.
Economic cost
Resource consumption after separating principal, assets and cash-flow timing.
Example
€600 principal is a cash outflow but not €600 of economic consumption.
Effective APR
Annual price of credit including the mandatory costs covered by the measure. It makes equal-term offers easier to compare.
Example
A 4.5% APR does not mean 4.5% of the original amount is paid every year: interest applies to the remaining balance.
Effective lease payment
Monthly equivalent of regular payments and unavoidable one-off costs over the term.
Example
A €399 payment, €3,600 upfront and €1,200 delivery produce about €532 effective monthly cost over 36 months.
Effective monthly cost
Monthly equivalent of all decision-relevant payments over the period.
Example
€3,600 upfront over 36 months adds €100 monthly.
Efficiency
Useful output energy divided by input energy.
Example
90 kWh useful output from 100 kWh input equals 90%.
Electricity price
Price per imported kilowatt-hour plus consistently allocated standing charges.
Example
5,000 kWh at €0.32 gives €1,600 annual variable cost.
Eligible costs
Cost base to which a support percentage may apply under programme rules.
Example
30% on €30,000 eligible cost is €9,000 even if the quote is higher.
Equity
Own funds not supplied by the mortgage. A liquidity reserve should be considered separately.
Example
Paying transaction costs from equity reduces the loan but uses liquidity.
EV registration cutoff
Latest date by which first registration may qualify for the described benefit.
Example
The documented cutoff is 31 December 2030.
EV vehicle-tax exemption
Time-limited tax benefit for qualifying pure electric vehicles.
Example
An exemption can end before ten years because end-2035 is the outer limit.
Excess mileage
Distance above the contracted mileage, usually charged per kilometre.
Example
4,000 excess kilometres at €0.18 cost €720.
Exclusion register
Explicit list of relevant effects a model does not calculate.
Example
Tax advice stays outside the calculator and is shown as an exclusion.
Expected return
Scenario or distribution mean of an uncertain investment outcome, not a promised result.
Example
A 6% expected return must not be treated like a guaranteed loan rate.
Export value
Revenue from one kilowatt-hour exported to the grid.
Example
At €0.08/kWh, 4,000 kWh earns €320 yearly.
Fair comparison
Comparison with the same horizon, complete cash flows and symmetric assumptions.
Example
Both vehicle options use the same mileage and holding period.
Fee ratio
Fees relative to assets or invested amount over a clearly defined period.
Example
A 1% annual fee reduces net return and also compounds over time.
Feed-in tariff
Payment per exported kilowatt-hour. Calculations should use the current value that applies to the user’s project.
Example
Self-consumption avoids the retail price; export receives only the entered tariff.
Financing horizon
Period over which finance cost and remaining balance are evaluated.
Example
Ten years fixed and a 30-year total term are two horizons.
Fixed-interest period
Period for which the mortgage rate stays fixed. A remaining balance may face a new rate at the end.
Example
After a ten-year fixed period, a 30-year mortgage is usually not fully repaid.
Future value
Value of a current amount or cash-flow series at a future date.
Example
€1,000 grows to €1,050 in one year at 5%.
Gas price
Price per fuel kWh; heating cost must account for system efficiency.
Example
€0.11 per gas kWh at 90% efficiency is about €0.122 per useful heat kWh.
Grid export
PV electricity not used on site but supplied to the public grid.
Example
9,000 kWh generation less 3,000 kWh self-use gives 6,000 kWh export.
Guaranteed return
Contractually secured return within the provider’s conditions and credit risk.
Example
Avoided loan interest is economically closer to a certain return than equity expectations.
Heat pump
Heating system that uses electricity to raise environmental heat to a useful temperature.
Example
Electricity demand is approximately heat demand divided by seasonal performance.
Holding period
Period for which a vehicle is owned or used and economically compared.
Example
An upfront cost such as registration spreads differently over six years than two.
Home charging loss
Difference between energy bought from the grid and stored in the battery.
Example
A 10% loss turns 2,000 kWh battery demand into about 2,222 kWh grid purchase.
Inflation
Rise in the general price level, reducing what the same amount of money can buy.
Example
2% inflation reduces €1,000 purchasing power after ten years to about €820 in today’s terms.
Initial repayment rate
Principal repaid in the first year relative to the original loan.
Example
A 2% initial repayment on €300,000 is €6,000 in the first year.
Input source
Origin of a calculator value, such as an offer, official reference or own assumption.
Example
The loan rate comes from the personal offer, not the ECB.
Insurance cost
Premiums and deductibles to the extent they differ between compared options.
Example
If insurance is identical, it does not change the winner but still affects cash flow.
Internal rate of return
Rate at which a cash-flow series has zero NPV; not every series has a unique solution.
Example
Multiple cash-flow sign changes can produce multiple mathematical IRR solutions.
Internal rate of return (IRR)
Discount rate at which a cash-flow series has zero NPV. Not every series has one unique meaningful IRR.
Example
If IRR exceeds the user’s hurdle rate, the project meets that mathematical threshold.
Inverter
Device that converts module direct current into usable alternating current.
Example
Efficiency and possible replacement affect lifecycle cost.
kWh
Kilowatt-hour is an amount of energy. Power in kW multiplied by time in hours gives kWh.
Example
A 2 kW device running for three hours uses 6 kWh.
kWp
Kilowatt-peak describes rated PV capacity under standard test conditions, not annual generation.
Example
A 10-kWp system does not produce 10 kW continuously; weather, orientation and losses change output.
Land register fees
Fees to register ownership or security interests in a public register.
Example
Land-register fees are modelled as acquisition costs.
Lease payment
Regular contractual payment for use, not automatically including upfront, delivery or return costs.
Example
A €399 monthly payment for 36 months totals €14,364 before other contract costs.
Leasing factor
Monthly lease burden relative to list price. Upfront payment and delivery must be included for a fair measure.
Example
A low payment with a large upfront sum can have a worse effective factor than an offer without one.
Levelized cost
Discounted lifecycle cost per discounted unit of energy produced or delivered.
Example
Investment, operation and replacement are allocated to the same kWh basis.
Liquidity buffer
Immediately available reserve for unexpected costs after purchase.
Example
Using all available equity may force a later repair to be financed again.
List price
Manufacturer reference price before individual discounts and options.
Example
A lease payment may use a €50,000 list price even when the purchase price is €44,000.
Loan-to-value
Loan relative to the property value used by the lender. It is not necessarily the loan divided by purchase price.
Example
A €320,000 loan on a €400,000 lending value is 80% LTV.
Main refinancing rate
Rate for regular Eurosystem main refinancing operations.
Example
A 2.40% main refinancing rate is not a household’s borrowing cost.
Maintenance reserve
Planned amount for long-term repairs and replacement. It prevents ownership being assessed only by the mortgage payment.
Example
Roof, heating or façade costs are irregular but should be represented as an ongoing reserve.
Marginal lending facility
Eurosystem overnight credit facility for banks against collateral.
Example
The 2.65% rate in July 2026 is not a consumer offer.
Methodology version
Identifier for the formulas and logic that produced an outcome.
Example
After a formula change, a saved v5 calculation can be flagged for review.
Mileage lease
Lease based on contracted total mileage with adjustments for excess or unused kilometres.
Example
15,000 km per year over three years gives 45,000 contracted kilometres.
Mortgage
Long-term secured loan used to finance property.
Example
A €400,000 purchase less €100,000 own funds gives €300,000 loan need before costs.
Mortgage interest cost
Price of using borrowed capital, calculated on the outstanding balance.
Example
An extra principal payment reduces the base for future interest cost.
Net present value
Present value of all inflows less present value of all outflows; equivalent to NPV.
Example
An NPV of €2,000 means a modelled surplus over the discount rate.
Net present value (NPV)
Sum of all inflows and outflows discounted to today. Positive NPV means a surplus over the selected discount rate.
Example
€1,000 in five years is worth less than €1,000 today at a positive discount rate.
Net rent
Rent excluding usage-related service costs; comparisons must use a consistent boundary.
Example
€1,400 net rent plus €250 usage costs is not the same as €1,650 owner housing cost.
Net resale proceeds
Actual sale price after sale-related costs.
Example
A €27,000 sale less €800 preparation gives €26,200 net proceeds.
Nominal interest rate
Quoted interest rate before fully accounting for inflation or all fees.
Example
A 5% nominal rate with 2% inflation is not a 5% real gain.
Nominal return
Return before inflation. It shows account growth, not necessarily higher purchasing power.
Example
A 5% nominal return with 2% inflation is roughly 3% real.
Nominal storage capacity
Technical gross capacity before usable window and reserves.
Example
10 kWh nominal capacity may provide only 9 kWh usable.
Notary or legal fees
Cost of legal completion of a property purchase where required in the market.
Example
Legal fees are an upfront outflow and not principal repayment.
Opportunity cost
Benefit of the best realistic alternative given up by choosing an option.
Example
Cash used for a purchase cannot remain invested; the foregone net return is an opportunity-cost assumption.
Payback period
Time until cumulative undiscounted inflows recover the investment.
Example
€1,500 annual net inflow recovers €15,000 in a simple ten-year payback.
Personal offered rate
Specific rate from an individual credit offer with its conditions.
Example
A 4.6% APR from the offer is the appropriate calculator input.
Photovoltaics
Technology that generates electricity from light using solar cells.
Example
Economics comes from self-consumption, export and total lifecycle cost.
Present value
Value today of a future payment discounted at a chosen rate.
Example
€1,100 in one year has a €1,000 present value at a 10% discount rate.
Present-value factor
Factor converting a future amount to today using time and discount rate.
Example
At 5%, €1 in one year is worth about €0.952 today.
Principal payment
Payment that reduces debt and builds equity rather than being economically consumed.
Example
Of a €1,700 payment, €900 may be interest cost and €800 wealth building.
Principal repayment
Part of a loan payment that reduces debt rather than paying interest.
Example
Of a €600 payment, €450 may initially repay principal and €150 pay interest.
Property appreciation
Nominal change in property value over time; it is a scenario assumption, not a guarantee.
Example
2% a year turns €400,000 into roughly €487,600 after ten years in nominal terms.
Property sale costs
Costs deducted from gross proceeds when the property is later sold.
Example
4% sale costs on €500,000 reduce net proceeds by €20,000.
Property transfer tax
One-off tax on a property purchase; the amount depends on jurisdiction.
Example
The calculator should use the rate applicable to the property as a user input.
Public charging price
Actual unit price and possible subscription for public charging.
Example
€0.69/kWh at rapid chargers matters only at the actual charging share.
Purchase price
Actually agreed price; the model must state whether ancillary costs are included.
Example
A €42,900 vehicle plus €1,100 registration and delivery gives a €44,000 cash outflow.
Purchasing power
Amount of goods and services that a sum of money can buy.
Example
A higher nominal end value can still mean less real purchasing power under inflation.
PV
Abbreviation for photovoltaic conversion of light directly into electricity.
Example
A 10 kWp PV system can produce very different annual yields by location.
Range crossover
Value within a tested range where the leading alternative changes.
Example
At €21,400 resale value, the vehicle comparison reverses.
Rate-reset risk
Risk of changed finance cost after the fixed-rate period.
Example
A €250,000 balance reacts more to a rate rise than €80,000.
Real interest rate
Interest rate after inflation, approximately nominal rate minus inflation.
Example
4% nominal with 2% inflation is roughly 2% real.
Real return
Return after accounting for inflation and therefore closer to the change in purchasing power.
Example
If wealth rises 4% while prices rise 3%, purchasing power grows only about 1%.
Refinancing
Replacement of existing finance with new terms, rate or structure.
Example
A lower payment can come from a longer term rather than a true saving.
Registration cost
One-off official and service costs to register a vehicle.
Example
A €250 registration cost belongs in the purchase upfront costs.
Remaining balance
Loan amount still outstanding after payments made so far.
Example
On sale, a €12,000 remaining balance must be cleared from proceeds or cash.
Rent escalation rate
Annual nominal change in rent in a scenario.
Example
4% rather than 2% leads to a materially different rent after ten years.
Rent increase
Assumed annual change in rent in the scenario.
Example
2% a year raises €1,500 rent to about €1,656 after five years.
Rental yield
Rental income relative to property value; gross and net versions must be distinguished.
Example
€18,000 annual rent on €450,000 value is a 4% gross yield.
Residual debt
Loan amount not yet repaid after a defined horizon.
Example
Residual debt is deducted from ending wealth.
Residual value
Expected net proceeds from a later sale. It is an uncertain scenario assumption and central to depreciation.
Example
A €42,000 purchase price less €26,000 net sale proceeds gives €16,000 depreciation.
Residual-value lease
Lease form in which an estimated end value has a stronger contractual role.
Example
If realised value is below the assumed residual, the contract may create additional risk.
Return condition
Contractual condition in which a leased vehicle should be returned.
Example
Normal use and chargeable damage must be distinguished in the contract.
Return on equity
Property investment return relative to equity invested, influenced by leverage.
Example
A positive property gain can create a high but riskier percentage on a small equity base.
Robust result
Outcome whose ranking remains stable across plausible assumptions.
Example
Option A remains ahead under ±10% changes to key values.
ROI
Investment result relative to capital invested; period and definition must be stated.
Example
A €200 gain on €1,000 invested is a 20% ROI.
Round-trip efficiency
Energy discharged divided by energy previously stored over a full cycle.
Example
At 90%, 10 kWh stored returns 9 kWh.
Scenario range
Plausible interval for an uncertain assumption rather than one point value.
Example
Resale from €16,000 to €22,000 shows the outcome range.
SCOP / seasonal performance
Ratio of heat delivered to electricity used over a season. It is more informative than one laboratory COP.
Example
At 15,000 kWh heat and SCOP 3.0, the model needs 5,000 kWh electricity.
Self-consumption
Share of PV generation used on site at the same time, replacing grid purchases.
Example
3,000 kWh used on site from 9,000 kWh generation is about 33% self-consumption.
Self-consumption value
Avoided grid purchase per self-consumed kilowatt-hour.
Example
€0.35 avoided grid purchase is more than €0.08 export revenue.
Source snapshot
Versioned state of an official source with verification and effective dates.
Example
The ECB snapshot from 17 August 2026 documents the July decision.
Specific yield
Annual production per installed kWp, usually in kWh/kWp.
Example
9,500 kWh from 10 kWp equals 950 kWh/kWp.
Subsidy cap
Maximum amount or cost basis recognised by a support programme.
Example
A high rate on capped cost does not subsidise the entire quote.
Total cost factor
Total contractual lease payments relative to list price, often shown as a percentage.
Example
€18,000 contractual cost on a €45,000 list price equals 40%.
Total cost of ownership (TCO)
All decision-relevant costs over the same period, typically depreciation, finance, energy, maintenance, tax and insurance.
Example
A low purchase price can be overtaken by high consumption and depreciation.
Transaction costs
One-off costs of purchase and later sale that do not build property value.
Example
High transaction costs often make short holding periods expensive.
Unused mileage
Contracted distance not driven, refunded only under the specific contract terms.
Example
2,000 unused kilometres are not necessarily refunded at the excess-mileage rate.
Upfront lease payment
One-off payment at the start that lowers the visible monthly payment but remains part of total cost.
Example
A €3,600 upfront payment over 36 months adds €100 per month.
Usable capacity
Part of nominal capacity actually available within the intended operating window.
Example
10 kWh nominal capacity may provide only 9 kWh usable capacity.
Usable-capacity ratio
Usable capacity divided by nominal capacity.
Example
9 kWh usable from 10 kWh nominal equals 90%.
Useful heat
Heat actually delivered to the building after conversion losses.
Example
At 90% boiler efficiency, 18,000 kWh useful heat requires 20,000 kWh fuel.
Vehicle finance
Loan or instalment plan for a vehicle with interest, term and possible final payment.
Example
Low monthly payments can result from a large final payment rather than low total cost.
Vehicle running costs
Recurring costs such as energy, insurance, tax, maintenance and repairs.
Example
€200 monthly energy plus €1,200 annual insurance gives €3,600 per year.
Verification date
Date when a source or assumption was last checked.
Example
A 17 August 2026 verification date makes source state traceable.
Volatility
Degree of fluctuation in prices or returns; it is not a complete measure of risk.
Example
A 6% expected return can include years with substantially negative outcomes.