The 54-year-old feels there is still much more to come from his side after topping Group G, but says they will not simply sweep the African nation aside
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However, while Low feels that there is still more to come from a Germany side that opened their World Cup campaign by routing Cristiano Ronaldo's Portugal, before then drawing with Ghana and edging out United States, he is not underestimating the threat posed by Algeria.
"Knockout games have a magic about them," he told reporters on Saturday. "We'll be full of confidence, but it would be a big mistake to think it will be easy.
"We've delivered so far. We're essentially happy, but we know that we can play better."
Meanwhile, Low revealed that Jerome Boateng will be fit to feature in Porto Alegre but added that the second round clash has come too soon for Lukas Podolski.
"Jerome has got a little niggle in his knee," the Germany boss explained. "But it won't rule him out of the Algeria game.
"Lukas will be missing for the last-16, though. He's pulled a muscle. He needs two to three days of rest."
Should Germany progress to the quarter-finals, they would meet the winners of France's clash with Nigeria.