The submarine was powered by two Germaniawerft F46 supercharged four-stroke, six-cylinder diesel engines producing a total of 2,800 to 3,200 metric horsepower (2,060 to 2,350 kW; 2,760 to 3,160 shp) for use while surfaced, two AEG GU 460/8-276 double-acting electric motors producing a total of 750 shaft horsepower (760 PS; 560 kW) for use while submerged.

[2] When submerged, the boat could operate for 75 nautical miles (139 km; 86 mi) at 4 knots (7.4 km/h; 4.6 mph); when surfaced, she could travel 14,700 nautical miles (27,200 km; 16,900 mi) at 10 knots (19 km/h; 12 mph).

Between December 1943 and October 1944 she made six voyages transporting torpedoes from the naval base in Kiel to ports in German-occupied Norway.

[3] On 27 October 1944 Fleet Air Arm Fireflies and Barracudas from the aircraft carrier HMS Implacable attacked U-1060 with rockets and depth charges, and the submarine ran aground on the Norwegian island of Fleina south of Brønnøysund.

The rocket projectile sight aboard Liberator BZ723/H led by Sqn Ldr Alois Šedivý failed, but its crew managed to hit the submarine with another eight RP's.