Enter the amount, rate and term - the calculator instantly shows the monthly payment, interest overpayment, effective rate with fees and the full payment schedule. You can also calculate the effect of early repayment right away.
The calculation is approximate and is not a loan offer. Actual terms (rate, fees, insurance) depend on the bank and your credit profile - check the exact figures in the agreement before signing.
How the loan payment is calculated
Banks calculate the monthly loan payment using one of two schemes. Annuity means the same payment every month for the whole term: P × i / (1 − (1 + i)^−n), where P is the loan amount, i is the monthly rate (annual rate / 12 / 100), and n is the number of months. At first the payment is mostly interest; over time the principal share grows, but the total payment amount stays the same.
The classic (declining balance) scheme splits the principal into equal parts (P / n per month), while interest each month is charged only on the remaining balance. Because of this the first payment is the highest, and each following one is slightly lower, since the balance - and the interest charged on it - decreases faster than with an annuity.
Besides interest, banks often charge fees: a one-time origination fee (as a % of the amount or a fixed sum) and a monthly account servicing fee. Together with the nominal rate they form the effective rate - that is what you should compare between offers from different banks, not just the "% per year" from the ad.
Control example: a 100,000 UAH loan for 12 months at 24% per year, annuity. Monthly rate i = 24 / 12 / 100 = 0.02. Payment = 100,000 × 0.02 / (1 − 1.02⁻¹²) ≈ 9,455.96 UAH every month for all 12 months.
The total amount paid for this loan is 12 × 9,455.96 ≈ 113,471.52 UAH, of which 100,000 UAH is the principal and 13,471.52 UAH is the interest overpayment (excluding any fees).
If the same loan is structured with the classic scheme, the first payment will be higher - 100,000 / 12 + 100,000 × 0.02 = 8,333.33 + 2,000 = 10,333.33 UAH, while the last one will be lower than the annuity payment. The total interest overpayment under the classic scheme will be slightly lower than under annuity, for the same rate and term.
Everything about calculating a loan payment
A loan calculator helps you understand in advance how much a loan will actually cost: not just the monthly payment, but the total overpayment, the impact of fees, and how much you can save by paying off the loan faster than scheduled.
How fees affect the real cost of a loan
Loan ads usually show the nominal rate - just the interest under the agreement. But add a one-time origination fee (say, 2% of the amount) and a monthly servicing fee, and the real cost of money for the borrower goes up. The calculator accounts for both fee types (percentage or fixed amount) and shows an approximate effective rate - that is the correct way to compare offers from different banks.
Early repayment: shorten the term or lower the payment
If you get the chance to pay more than scheduled, there are two options. First, shorten the loan term while keeping the monthly payment the same: the loan will be paid off sooner, and the total interest overpayment will drop the most. Second, lower the monthly payment itself while keeping the term the same: useful if the goal is to ease the current budget burden rather than maximize savings.
The calculator supports both early repayment methods - a fixed monthly extra payment and a one-time lump payment in a specific month - and instantly shows how much interest you will save.
Why the classic scheme is cheaper than annuity at the same rate
In both schemes interest accrues on the outstanding balance using the same formula (balance × monthly rate). The difference is how fast that balance decreases. With the classic scheme the principal decreases in equal parts from the first month, so the average balance over the whole term is lower than with an annuity, where most of the principal is repaid only in the second half of the term. A lower average balance means less interest accrued overall.
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