Loan calculator
Instant calculation of payments, overpayments and schedule
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Loan calculator
📊 Annuity or differentiated: what to choose?
Banks offer two repayment schemes. The size of the monthly payment and the final overpayment depend on the choice. Let's compare them:
1. Annuity payment
The gist:You pay the same amount every month. At first, you mainly pay off interest, and the debt body decreases slowly.
- ✅ Plus: Predictable budget, load distributed evenly.
- ❌ Minus: The final overpayment is higher.
- 🎯 For whom: For most borrowers (mortgages, car loans).
2. Differentiated payment
Gist:The payment decreases every month. You pay off a fixed portion of the debt immediately, and interest accrues on the balance (which is constantly dwindling).
- ✅ Plus: Less overpayment, faster debt repayment.
- ❌ Minus: The first payments are very large (“heavy”).
- 🎯 For whom: For those who want to save money and are willing to pay a lot at the start.
🧮 Calculation formulas (How it works)
For transparency, we show the mathematics that our calculator uses:
Annuity payment (AP):
AP = Sum × (i × (1 + i)n) / ((1 + i)n - 1)
where i is the monthly rate, n is the term in months.
Differentiated payment:
Payment = (Amount / n) + (Balance of debt × i)
The payment decreases every month following the decrease in the balance of the debt.
💡 3 ways to pay the bank less
- Early repayment. The most powerful tool. Deposit amounts above the schedule and choose “reducing the term.” This cuts off months of future interest.
- The correct type of payment. If your income allows, ask the bank for a differentiated scheme (although banks do not like it and often hide it).
- Refinancing. If your rate is 20%, and the market has dropped to 15%, go to another bank. Use refinancing calculator to calculate the benefits.
Frequently asked questions (FAQ)
🔹 What is more profitable when paying early: reducing the term or payment?
It is always more profitable to reduce the term. This way you stop paying interest to the bank faster. Reducing the payment simply reduces the monthly burden, but the final overpayment remains almost unchanged.
🔹 What is the “body” of the loan?
This is the amount you borrowed “net”. The monthly payment consists of two parts: the return of part of the “body” and the payment of interest for using the money.
🔹 Does insurance affect the calculation?
Insurance is not directly involved in the loan formula, but it affects the rate. With insurance the rate is often lower (for example, 15%), without it the rate is higher (18%). Consider both options to understand whether buying a policy pays off.
🔹 What is UCS?
TPC (Full Cost of Loan) is the real price of the loan, including not only the interest rate, but also insurance, commissions and fees. The bank is obliged to write it in the upper right corner of the agreement.