Most people will sooner or later turn to credit, because it is easier to borrow money at interest, than asking a considerable amount of friends and acquaintances in debt.In our life, sometimes things happen, to prepare for that in advance is difficult, and deferred to the "rainy day" money is not enough.Having read the horror stories in the newspapers, when the banks for debt rob an apartment, a car and the shirt, the majority of people are trying to prepare in advance for the trip to the bank.Learn more credit in the bank, you can try to answer the question "how to calculate interest on the loan," and find out the size of future overpayments.
Almost all banks now issue loans where monthly payments are annuity, that is, the amount of the payment schedule does not change.Any payment consists of principal and interest on the loan (if there is no additional monthly fees).At the beginning of payments in the amount of monthly payments of a percent higher, and then it gradually decreases, and the payment of principal, respectively, increased.Sometimes, along with the annuity payments are applied, differentiated payments when the amount of monthly payments is gradually reduced.So, how to calculate percentages.
How to calculate the interest on the loan.
in each annuity payment is required to have the annuity factor, depend on it any further loan options.To calculate the ratio, the following formula:
AK = R * (1 + CP) N / ((1 + CP) N-1)
AK - annuity factor;
KP - factor interest rate
N - repayment period of the loan in months
gearbox ratio or interest rate can be calculated by the formula:
KP = PS / 1200 where PS - this is the annual interest rate that the bank advertises.
now quite easy to calculate the amount that you will need to pay the bank each month.
Monthly payment rate * = Annuity loan amount.
Now let's calculate the total amount of debt, that is, the amount that you have to pay the bank for the entire loan term.
The total cost of the loan = Months * Monthly payment on the loan.
Now, since we wondered how to calculate interest on the loan, calculate the amount of overpayment on the loan:
Overpayment on the loan = Total payments on the loan - Loan amount
Now you can easily plan your family budget and expenditureloan, because you now not a secret, how to calculate percentages.
effective interest rate.
I would like to mention one important point.You must be clear on what you have in mind when trying to understand how to calculate the interest on the loan.In addition to the annual interest rate in the bank you can announce the effective interest rate.This rate includes all other overpayments on the loan plus the annual interest rate.This rate is much closer to reality than the usual annual interest rate on the loan.
Now a few words about the annual percentage.There are concepts such as simple and compound interest.Compound interest is calculated on the amount of extension of the loan plus the previous calculation.Simple interest is calculated on the original amount.So the annual interest - is compound interest, and it can not be calculated, if we take the initial amount of the loan.Why not?Interest is accrued monthly on the balance of the principal, but not the entire amount, and is calculated according to the principle of annuities.
Do not hesitate to ask for a sample bank payment schedule and compare the total amount of overpayment to the one that turned you.And do not forget to calculate the total amount of the loan to add on to all the amounts of commissions and insurance which the bank will certainly take with you.