How to calculate monthly loan repayment. How to calculate interest on a loan yourself

January 2019

Knowing how to correctly calculate a loan will help you choose the most profitable credit institution, plan your expenses and avoid getting into a difficult situation when wages are not soon, and there are several days left before the next loan payment. You can find out the loan repayment amount from a bank branch specialist, or by using special formulas, or by using loan calculators, which are offered as a cheat sheet by many institutions that lend money.

How to calculate the loan yourself?

The amount of interest required to be repaid in the next reporting period can be calculated using the following formula:

Amount to be repaid = Loan amount * interest rate * loan term in days / 365 (number of days in a year).

Let's look at a specific example:

Having borrowed the amount of 10,000 rubles for 1 year at a rate of 20% per annum, we get 10,000 * 0.2 * 365 / 365 = 2,000 rubles, the commission will have to pay for using the loan.

Substituting one instead of zero in the second value, we get 12000 - this is the entire amount that will need to be returned to the conditional credit institution, including interest.

This formula is approximate, but with its help it will be possible to estimate your expenses, including monthly ones, and stop your attention on the offer that is optimal for you.

To calculate the amount of the main loan and interest payable, it is not at all necessary to arm yourself with a calculator, even if there is no special banking program at hand.

Simple knowledge of the computer and the Excel application program will help you insert the formula once and calculate the loan according to the decrease in the principal share and interest on an accrual basis.

All calculations can be made with a special loan calculator, while the user should enter the following parameters of the future loan:

Amount of credit.
The name of the currency.
The interest rate declared by the bank.
The period for which the money is borrowed.
The name of the payment type.
Start of payment on the loan, indicating the date and month.

Annuity payments

This type of payment was borrowed from the experience of European countries, where such payments were used even before the time when they were invented payment cards in their current understanding. Such a payment made it possible to purchase on credit mainly real estate and cars. With this type of payment, you can pay exactly on time specified in the loan agreement, in amounts that were agreed in advance. When purchasing goods on credit, the buyer knew exactly how much and when he would have to pay the bank, he could plan his expenses, adjusting his financial savings for such a loan.

The disadvantage of such a loan is that most of the monthly payment goes to pay interest on the loan. This is very beneficial for banks, since their money, that is, those that were issued to the debtor, have long been received. And the lender simply receives a premium for issuing most of the loan fee Money on credit.

These loans are mainly used for:

mortgage lending;
sales of cars as collateral;
issuance of consumer loans in stores;
lending to individual entrepreneurs for the start-up of a new project.

The most common example of an annuity payment is an installment plan in consumer electronics stores under the scheme “0 rubles now and 24 months of paying a fixed amount”.

So, among the advantages of an annuity payment are:

fixed payment terms;
possibility of budget planning;
knowledge of future costs.

Differentiated payments

These are payments that decrease over time if the loan is repaid in good faith. This happens due to the fact that the amount of the main loan decreases, as a result, the interest that the debtor pays only for that part of the loan that is not closed in a bank or other credit institution also decreases.

The indicators of the payment values for the main loan do not change for the entire period of use and payment for the loan, but the interest decreases monthly by the amount of the part of the main loan repaid each month.

This type of payment for short-term lending reduces the rate of funds given to the bank for interest used in obtaining a loan. That is, the borrower pays both for his own money, and not for their increase by the size of the interest rate on the loan.

Among the minuses, it can be noted that it is not easy to find a credit institution offering this type of installment payment. It is much more profitable for banks to “make money out of thin air”, in this case from interest, and not to allow the client to pay for the funds that are formally at his disposal for a long time.

Also, the disadvantages include a relatively large, compared with annuity payments, the initial payment amount. Wealthy borrowers can afford this form of lending.

How to calculate the annual interest on a loan?

For an annuity payment, it is enough to multiply the amount of the entire loan taken by interest rate. Visually it looks like this:

10000 * 12% = 1200 rubles will be the amount that must be paid for the use of interest to the bank.

With a differentiated payment, the amount of annual interest is calculated a little more complicated, since it is necessary to multiply the loan balance by the interest rate and divide by 12.

That is, if out of our 10,000 5,000 are paid, then: 5,000 * 12% / 12 = 50 rubles will have to be paid to the bank monthly for using the loan. At the same time, multiplying the same number by 12, we get the average amount for paying interest for the entire year.

When applying to a bank for a loan, you should clarify which lending system works in this organization. If it is proposed to make a choice on your own, then it makes sense to stop at a differentiated payment. There is less overpayment for such a payment, and the very awareness that you have to pay for your own money is an important factor when choosing a lending method.

It is also advantageous to repay mortgage loans in a differentiated way, since with the growing cost of real estate it is unprofitable to repay a loan with an overpayment of a significant amount of funds.

When choosing a loan payment, the best solution would be to ask a bank employee to print out approximate schedules and payment amounts for both loans and compare which one is the most profitable.

It will also be useful to know what type of payment is offered by default in any bank.

How to calculate the amount of the monthly loan payment?

The amount of the monthly payment consists of the amount of the main loan and interest on it.

With differentiated accrual, we calculate the amount of the main loan for November, in which there are 30 days:

10000 / 12 = 834 rubles the cost of a monthly loan.

834 + 99 = 933 rubles a month will go to pay off the payment in this way.

The formula for calculating the monthly loan payment

To calculate the monthly payments on a loan with an annuity payment, you can use the formula below:

X \u003d D * (Pm + (Pm / (1 + Pm) * Sm–1)), where:

X - the required value of the monthly loan;

D - total amount borrowed money;

Pm - interest rate on a loan for 1 month, i.e. the loan rate, which is written in official documents, divided by 12;

Cm - loan term in months.

The formula for calculating the differentiated payment is as follows:

X \u003d Do / Ohm, where:

Before - the balance of the principal debt;

Ohm - the balance of periods payable in months.

Formula for calculating a loan

Formulas for calculating interest on loans, both differentiated and annuity, are quite difficult to understand, but practice shows that after making calculations using such a formula for the first time, its further use does not require a degree in mathematics.

The amount of the annuity payment "C" is calculated according to the following formula:

(Sz*P/12)/1–(1/1+P/12) ^ B, where:

Cz - loan amount;

P - annual interest rate for the use of the loan;

B - the number of months in which it is necessary to make mandatory payments under the credit program.

When using a differentiated payment system, a different formula is used:

C \u003d Co * P * V / 100 * D, where:

D - the number of days in a year, that is, 365, except for leap days;

Co - the amount of the balance on the loan, equal to the cost of the purchased goods minus the amount of payments already repaid.

How to correctly calculate interest on a loan - an example

Consider an example that will help you correctly calculate the loan yourself. For simplicity, we take integers and round the result to an integer value.

The loan was issued in the amount of 12,000 rubles and a differentiated repayment system was chosen.

The item was conditionally purchased in December, so the next due date is January next year.

Loan term - 1 year, interest rate - 10%.

The body of the loan will decrease by 1,000 rubles a month, since 12,000/12 = 1,000, and in January you will have to pay interest on the entire part.

The period from April to November was deliberately omitted, but the practice of counting is no different from the examples above. When adding 12 indicators from the right column, you get the loan amount that will need to be repaid to the bank during the year. Summing up the third column will allow you to calculate the amount of the overpayment, that is, the part for which the credit institution works.

To calculate using the annuity formula, it is enough to calculate the interest rate on the loan, since we already know the amount of the principal debt required to be repaid monthly. This amount is equal to 1000 rubles, since this method of payment involves payment in equal installments.

We have the same input data, therefore:

(10000*(0,12/12))/(1–(1/(1/(1/+(0,12/12))))) = 833.

Consequently, you will have to pay 1,833 rubles a month.

Practice shows that differentiated loans are much more profitable for long-term loans, in which repayments no longer seem so tangible in recent months or years.

With a low interest rate and a short loan term, the choice can be made in favor of an annuity payment, in which the most problematic will not be the first year, as with a differentiated loan method. The debt load will be evenly distributed between all crediting periods.

Loan calculation

availability of guarantors and certificates confirming income;
the form of issuance of money (cash or card);
experience;
age;
availability of collateral;
term for consideration of an online application for a loan.

Additionally, you can specify a specific bank in which you would like to take a loan. In addition, advanced settings allow you to find financial institutions that lend money to people with poor credit history, beneficiaries and citizens with temporary registration. All presented options can be sorted by the size of the annual percentage and the amount of the loan.

How to calculate your monthly loan payment

To view detailed information about a specific loan product, click on its name. A page will open indicating the conditions for obtaining and repaying the loan, as well as its main parameters, such as:

sum;
payment type;
currency;
amount of monthly payments;
interest rate;
total cost;
payment schedule;
list of required documents;
borrower's age.

Using the loan repayment calculator, you can see a preliminary calculation by month, indicating the date of payments, their size and the balance of the debt. Here you can calculate the overpayment on the loan.

An example of calculating a loan in an online calculator

Loan balance	Redemption	Repayment of principal	Amount of payment

Calculator consumer credit makes calculations according to the annuity payment formula. This method assumes that the loan amount and interest are repaid in equal installments over the entire loan term. The monthly amount will not change even if the client pays amounts exceeding the amount established by the agreement. The calculation of interest on a loan under an annuity scheme is used in most Russian banks.

Which can be issued at a low rate, according to a simplified scheme and with a minimum of documents. The task of the client is to evaluate the profitability of the offers of banks.

Features of the online loan calculator

Our online consumer loan calculator is a convenient service in which the user can make calculations himself, without contacting the bank. Specifically, the calculator allows you to:

Calculate the full cost of the loan - taking into account the principal debt and "dripping" interest;
Take into account the calculation scheme used by the bank - annuity or differentiated payment;
Include all fees and additional payments- one-time or regular;
Select loan offers based on the parameters entered in the calculator;
See information in the form of a chart and a summary payment schedule that can be saved and printed.

Thus, even at the preparatory stage, the client will calculate the financial burden in the calculator. This will help you compare several credit programs and choose the one that promises less risk. The calculator also saves time: now you do not need to contact each bank individually to request an approximate payment schedule.

What are the parameters for the calculation?

What does a bank client rely on when choosing a loan? on the terms of the loan. They are already taken into account by the site's online calculator, in which you need to enter the entire set of parameters - the loan amount, rate, term, payment scheme, etc. More details:

Amount of credit. We are talking about the amount of funds that the client borrows from the bank (excluding interest, commissions and insurance). In 2019, the average amount of consumer loans ranges from 30 thousand to 5 million rubles. If you provide a bank with collateral, the amount grows significantly - up to several tens of millions of rubles.
Interest rate. It is a fee for the use of borrowed funds, expressed as a percentage. It is charged in relation to the loan amount for a certain period (usually - a year). Today, the average rate is from 9 to 13% per annum. It is believed that this is a key condition of any loan. In addition to market dynamics, the client's credit history, current financial burden and income affect the rate.
Term. This is the time for which the loan is issued. Judging by the current offers of banks, it can be from six months to five years, but it is finally approved by the borrower himself. The longer the term, the lower the payment (and vice versa). The moment of issuance is also important - the day from which the loan period started. That's when the bank starts charging interest.
Repayment method. Otherwise, it is called the payment accrual scheme, which exists in two versions - annuity and differentiated payments. Usually the scheme for a particular loan is determined by the bank, but sometimes the client himself chooses, based on which payment is more profitable for him.

A big plus of the calculator is that it takes into account all the parameters, while borrowers simplify the calculations. For example, the only guideline when choosing a loan is the rate, hence the advertising slogans of banks about the “lowest interest”. In fact, additional payments can overlap the formally favorable rate, which is why the online calculator is so necessary: with it, users accurately determine the amount of the overpayment, bypassing bank tricks.

Annuity loan payment

In addition to commissions, there is another loan condition that often escapes the attention of borrowers - this is the order of payments. The site calculator calculates annuity payments on a loan on a par with differentiated payments (you can specify this by clicking on the appropriate button). In what way and why do banks calculate loans most often in this way?

An annuity assumes that the bank accrues equal payments over the entire term of the loan. At the same time, in the first half of the term, the loan debt is practically not repaid, since the borrower's money goes mainly to interest. Payments are small, but due to this, the amount of accrued interest increases, and, consequently, the profit of the bank grows.

Differentiated loan payment

With a differentiated payment, the loan debt is repaid evenly, starting from the first payments, and interest is charged on the actual balance. Therefore, each subsequent payment will be less than the previous one, which reduces the cost of the loan. In case of early repayment with this type of payment, the borrower can significantly save on the interest paid.

Is it profitable to pay off the loan early?

Early repayment is always beneficial: this way the borrower pays less interest to the bank. What was the agreement. However, there are nuances associated with the payment scheme. With an annuity, early repayment of the loan is beneficial only in the first half of the term, when the bank charges the most interest. With a differentiated loan, the opposite is true: the earlier you start repayment, the less the overpayment will be.

One of the most important criteria affecting the expediency of obtaining a loan is the amount of the monthly payment. Possibilities of modern information technologies allow you not to do the necessary calculations manually, since anyone can make calculations using the numerous online calculators posted on the network. However, for their correct application it is necessary to know the calculation rules.

How to calculate the monthly payment?

First of all, it should be noted that there are two options for monthly payments:

Annuity. This loan repayment scheme provides for regular payments of equal size throughout the life of the loan. The consequence of applying this option is the same financial burden on the borrower;
Differentiated. The amount of the monthly payment is calculated taking into account the currently remaining debt on the loan. As a result of using this loan repayment option, the financial burden on the bank's client is gradually reduced.

The differences between the two schemes lead to a fairly significant difference between the amount of the monthly payment and, consequently, the final amount of the overpayment, so they must be taken into account when choosing a suitable loan option. It is important to note that today there are several options for calculating the amount of regular payments on a loan.

Calculation of the monthly loan payment online

The most popular and easiest way to calculate your monthly payment is to use an online calculator. Today, such simple and convenient services are available on the official websites of almost all banks, as well as numerous specialized Internet resources dedicated to lending and work. banking system country. Usually, to perform the calculation, it is necessary to drive the following data into the program, the list of which may vary slightly depending on the type of loan:

the amount and term of the loan;
interest rate on the loan;
the amount of commissions (if any);
the amount of the down payment (if it is planned);
date of commencement of repayment of the loan;
type of monthly payments (annuity or differentiated).

The advantage of using online calculators placed on the websites of various banks is the presence in their databases of tariffs established by each particular credit institution. This greatly simplifies the calculations. However, if you need to compare the conditions offered by different banks, you will need to visit several sites.

An important advantage of using online calculators is the ability to quickly perform many calculations, based on various loan terms or the size of the monthly payment. As a result potential borrower gets a great chance to choose the most profitable loan option for you.

Settlement at a bank branch

Another option to calculate the size of the regular payment on the loan is to contact the bank directly with which the client plans to cooperate in the future. Any employee of the credit department also has a program for calculating the schedule of monthly payments, which easily and very quickly calculates the terms of a particular loan, based on the main parameters described above.

In this case, the client can also ask a bank employee to make the necessary number of calculations in order to identify the most advantageous option from the point of view of the client's financial capabilities. The only disadvantage of this method of calculating loan conditions is the impossibility of a quick comparison of offers from different banks.

Other calculation methods

Of course, there is also the possibility of calculating the amount of the monthly loan payment using a conventional calculator, that is, in fact, manually. It is obvious that such a calculation option is used extremely rarely today, since it requires a lot of time and knowledge of rather complicated formulas (especially in the case of annuity payments), which leads to the possibility of errors in the calculations. Much easier, more convenient and, importantly, more accurate calculations using online calculators.

Calculation formula

However, in some cases manual calculations are still carried out. The following formulas are used for this:

for an annuity payment:
- Payment \u003d Credit * (Perc + (Perc / (1 + Perc) * Month-1)), where
  - Payment - the amount of the monthly annuity payment;
  - Credit - loan amount;
  - Perc - the value of the interest rate;
  - Mon - the term of the loan.
- for differentiated payment:
  - Payment \u003d Credit / Month + Balance * Proc. / 12, where
    - Payment - the amount of differentiated payment;
    - Credit - loan amount;
    - Mes - the term of the loan;
    - The balance is the debt on the loan at the time of interest accrual;
    - Prots - the value of the interest rate.

What does the monthly payment consist of?

The above formulas take into account only the two main components of the monthly payment directed to:

Repayment of principal on a loan;
Payment of interest accrued for the use of borrowed funds.

However, often under the terms of the agreement concluded with the bank, the client is forced to pay additionally for any services related to obtaining a loan, or commissions established by the credit institution. They can either be included in the monthly payment schedule or contained in a separate agreement.

Features of payment depending on the type of lending

In order for the calculation of the real monthly payment to be as accurate as possible, it is necessary to take into account the features certain types loans. For example, when car loans, attention should be paid to the client's obligation to insure the purchased vehicle, which is quite a significant amount. A similar situation is associated with obtaining property insurance with a mortgage. A full account of the conditions of a particular loan will allow you to choose the most beneficial loan option for the client.

To avoid delaying a loan, you should pre-calculate the loan parameters online and decide whether you can pay off the debt without delay. It is best to use a special program for this - an online calculator.

In a situation where borrowed funds are needed, it is important not only to find a bank that will provide them, but also to calculate monthly payment, find out what will be the financial burden on your budget. The appearance of overdue debt will lead to penalties from the bank and deterioration of the CI. To avoid this, it is best to know in advance how much you have to pay each month. The calculator will help you see the loan payment schedule - special program, which is on our financial portal.

With it, you can calculate the monthly installment online. The calculator takes into account all loan parameters. Specify its size, interest rate, maturity and date of issue of money. You can also choose the option of differentiated or annuity loan payments. After you have specified all the necessary parameters, click "Calculate costs".

The program will show the result:

total repayments (principal plus interest)
the amount of the monthly payment,
the amount of the overpayment in percent and rubles.

Using credit calculator, you can calculate the amount of contributions in advance. Analyze the graph data and evaluate whether you can handle such a financial burden.

If you still have questions, in order to get the most accurate loan calculation and answers to all your questions, contact the financial institution that interests you. Employees, taking into account your wishes and possibilities, will try to calculate the appropriate loan amount and monthly payments.

How to use a loan calculator online?

Enter the amount, repayment period and rate into the loan calculator - you will immediately receive a payment schedule and the total cost of the loan product.

Use the online calculator to get a preliminary idea of how the loan will be repaid. Click on the "Detailed calculation" button - the program will issue a calculation of the payment schedule, taking into account the size of the monthly payment, indicating which part of the funds goes to cover the interest on the loan and which part - to pay off its "body" (the amount given to you). On the Vyberu.ru portal, you can proceed to submitting an application online. After filling out the questionnaire in the form of the bank and sending him a request, you only need to wait for his answer (it will come in the form of SMS to the specified phone number) and, if approved, arrive at the office with necessary documents to sign the contract.