What is the cost difference between mortgage and vehicle loans?

When the housing BSMV exemption applies, only interest is charged, while vehicle and consumer loans add KKDF+BSMV (15%+15%) on interest. At the same monthly rate, an exempt housing loan produces a lower installment. If exemption conditions are not met, housing loans also attract 15% BSMV; confirm with your bank and current GİB practice.

How is the monthly installment calculated?

Monthly installments are calculated using the equal-installment (annuity) method. Formula: Installment = Loan Amount × [Monthly Rate × (1 + Monthly Rate)^Term] ÷ [(1 + Monthly Rate)^Term − 1]. In the early months most of the installment goes to interest, and principal repayment increases over time. For example, a 500,000 TRY loan at 2% monthly interest over 36 months results in a monthly installment of approximately 18,910 TRY.

What is the tax-inclusive annual compound rate? How does it differ from statutory APR?

The interest rate you enter is a monthly rate. This tool compounds the monthly rate together with KKDF and BSMV taxes to produce an annual compound rate. Formula: q = monthly rate × (1 + KKDF + BSMV), annual compound rate = (1 + q)¹² − 1. However, this result is not the statutory Annual Cost Rate (Yıllık Maliyet Oranı, YMO) or APR defined in Turkish Ministry of Trade regulations. The statutory YMO includes all mandatory costs (allocation fees, insurance, appraisal, mortgage/pledge charges, etc.) and the cash-flow timing specified in the loan contract. This tool calculates only interest and taxes; mandatory fees are not inputs. Therefore, it does not replace the official YMO shown by the bank in pre-contractual or contractual documents.

How much extra cost does extending the loan term add?

As the term lengthens, the monthly installment falls but total interest paid rises. For a 500,000 TRY loan at 2% monthly interest: total interest is roughly 105,000 TRY over 24 months, ~161,000 TRY over 36 months and ~220,000 TRY over 48 months. Extending the term from 24 to 48 months more than doubles the total interest. Choose the shortest term you can comfortably afford.

Loan Calculator

According to Turkish legislation • Detailed loan interest calculation and professional reporting according to 2025 legal regulations

Loan Parameters

Loan Type

Loan Amount

Monthly interest rate (%) — example: 2.50

This field is the monthly rate; do not enter an annual rate here. Divide a nominal annual rate by 12 to convert.

Term (Months)

1 Years 0 Months

I already own a registered residence or residential share at the loan date

If checked, housing loans apply 15% BSMV. If unchecked (first-home assumption), BSMV is treated as 0%.

No Results

Please enter loan parameters.

Calculation Information

KKDF & BSMV Rates

Loan Type	KKDF	BSMV
Housing	%0	0% / 15%
Vehicle	%15	%15
Consumer	%15	%15

Housing loans have 0% KKDF. The BSMV exemption after 28 Dec 2023 is limited to housing-finance loans for consumers who do not own a registered residence or share at the loan date; otherwise BSMV is 15%. Vehicle and consumer loans apply 15% KKDF and 15% BSMV on interest.

Formulas

Monthly Rate

The monthly interest rate entered in the form is used directly (example: 2.50).

Monthly Payment

Equal installment formula: A = P × q / (1 − (1+q)^(−n)); q = r × (1 + KKDF + BSMV).

KKDF

Interest × 15% (0% for housing)

BSMV

Interest × 15% (0% or 15% for housing, depending on conditions)

Total repayment

Principal + interest + KKDF + BSMV (sum of schedule rows)

Tax-inclusive annual compound rate

The rate on the form is monthly; this tool converts it to a tax-inclusive annual compound rate. Formula: periodic cost rate q = monthly rate × (1 + KKDF + BSMV), annual compound rate = (1 + q)¹² − 1. This result is not the statutory Annual Cost Rate (Yıllık Maliyet Oranı, YMO) or APR defined in Turkish Ministry of Trade regulations, because the statutory YMO includes all mandatory costs (allocation fees, insurance, appraisal, mortgage/pledge charges, etc.) and the cash-flow timing. This tool calculates only interest and taxes (KKDF/BSMV); mandatory fees are not inputs.

Loan Types

Housing loans usually have lower rates and longer terms.

Vehicle loans are for car purchases.

General purpose personal loans.

Interest Calculation

Interest is calculated on the remaining principal.

• Monthly interest = Balance * Rate

• Taxes added to interest

• Principal = Payment - (Interest + Taxes)

• Balance reduces each month

• Total interest decreases over time

Tips

• Compare rates

• Shorten term if possible

• Check additional fees

• Consider insurance costs

• Read fine print

Early repayment

Early-repayment rules depend on the contract type and the interest structure.

• For fixed-rate housing finance, early-repayment compensation may be charged if the contract so provides.

• If the remaining term does not exceed 36 months, compensation may be at most 1% of the prepaid principal.

• If the remaining term exceeds 36 months, compensation may be at most 2%.

• Compensation cannot exceed the interest reduction granted because of the early repayment.

• For variable-rate housing finance, early-repayment compensation cannot be demanded.

• The housing-finance 1%/2% rule is not used for vehicle and consumer credit; on early repayment, remaining interest and other cost items must be reduced as required.

Frequently Asked Questions

Official sources

Legal Disclaimer

Calculation tools are for informational and preliminary calculation purposes only. Legislative changes may not be reflected immediately in the calculation tools available on the site. They are not binding in official declarations or legal proceedings. They do not replace financial consultancy or legal advice. For definitive results, you can contact me. ozcankutlu.com cannot be held responsible for damages arising from calculation errors or legislative changes.