Mortgages and financing

RPSN (annual percentage rate of charge)

In Czech: RPSN

RPSN (roční procentní sazba nákladů) is the Czech annual percentage rate of charge: the total cost of a consumer loan expressed as a yearly percentage of the loan amount, including fees, not just interest.

Also called: APRC, annual percentage rate of charge, roční procentní sazba nákladů

What it means

RPSN stands for roční procentní sazba nákladů, the Czech equivalent of the APRC used across the EU. The Consumer Credit Act (zákon o spotřebitelském úvěru, No. 257/2016 Coll.) defines it as the total cost of consumer credit expressed as an annual percentage of the total amount of credit. It is calculated with a single formula set out in Annex 1 of the Act, so figures from different lenders should be comparable.

The total cost includes interest, commissions, taxes, fees and any other payments the borrower must make in connection with the loan and that the lender knows about. Notary costs are the exception. That is why RPSN is usually higher than the interest rate alone.

How it works in the Czech Republic

Lenders show RPSN in their offers and in the pre-contract information. On a mortgage it can include, for example, a loan processing fee or a monthly loan account fee, if the bank charges them and the borrower has to pay them.

To compare offers fairly, look at RPSN for the same loan amount, the same term and the same fixed-rate period. A low interest rate combined with high fees can end up costing more than a slightly higher rate with no fees.

The wording of the Consumer Credit Act described here applies until 31 December 2026, and a change to the Act is scheduled from 1 January 2027. Check the current wording and always work with the figures in your own offer and contract.

Practical example

For example, two banks offer the same mortgage. The first has a lower interest rate but charges a processing fee and a monthly account fee. The second has a slightly higher rate and no fees. Only the RPSN shows which offer is cheaper overall.

What to watch out for

  • Compare RPSN only between offers with the same loan amount, term and fixed period.
  • Ask whether compulsory insurance or other products the bank requires are included in the RPSN.
  • Notary costs are not part of RPSN, so budget for them separately.
  • Watch rate discounts tied to other products; if you cancel them, your costs can change.

Frequently asked questions

What is the difference between RPSN and the interest rate?

The interest rate is what you pay for the borrowed money. RPSN adds fees, commissions, taxes and other required payments known to the lender and turns the total into one annual percentage.

Does RPSN include every cost of a mortgage?

Not necessarily. The law leaves out notary costs, and payments the lender does not know about are not included. Costs of the property purchase itself need to be calculated separately.

Where do I find the RPSN?

Look for it in the loan offer and in the pre-contract information form. If you cannot find it, ask the lender for it before you decide.

  • Interest rate (úroková sazba)The interest rate (úroková sazba) is the price of borrowed money, stated as a yearly percentage. On a mortgage it sets how much of each payment goes to interest and is either fixed for a period or variable.
  • Mortgage (hypotéka)A mortgage (hypotéka) is a long-term housing loan secured by a lien on a property. The borrower repays it in regular monthly instalments, usually over many years.
  • Mortgage rate fixation (fixace)Mortgage rate fixation (fixace) is the period during which the interest rate on a loan stays the same. When it ends, the bank offers a new rate and the borrower decides whether to stay, refinance or repay part.
  • Mortgage refinancing (refinancování)Mortgage refinancing (refinancování) means paying off your existing mortgage with a new loan, usually from another bank on better terms. It is typically done when the fixed-rate period ends.
  • American mortgage (americká hypotéka)An American mortgage (americká hypotéka) is a non-purpose loan secured by a lien on property. The money can be used for anything, such as a car or paying off other debts, but your property serves as collateral.

Sources

Laws and official pages this text is based on (in Czech).

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

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