Annuity Loan Calculator

The annuity scheme means equal monthly payments over the entire loan term. At first, interest makes up most of the payment; over time, the loan principal takes over.

Payment = Amount × (i × (1+i)^n) ÷ ((1+i)^n − 1), where i is the monthly rate, n is the number of months

The total to be repaid equals the monthly payment multiplied by the number of months. The difference between it and the loan principal is the cost of borrowing.

Example 1. A loan of 100,000 UAH for 12 months at 24% per year. Monthly rate i = 24 ÷ 12 = 2% (0.02). Payment = 100,000 × (0.02 × 1.02^12) ÷ (1.02^12 − 1) ≈ 9,455.96 UAH. You repay ≈ 113,471.52 UAH in total, an overpayment of ≈ 13,471.52 UAH.

Example 2. A loan of 50,000 UAH for 6 months at 36% per year: payment ≈ 9,229.88 UAH, total ≈ 55,379.25 UAH, overpayment ≈ 5,379.25 UAH.

The calculator divides the annual rate by 12 and ignores fees and insurance, so the payment in your bank agreement may differ.

An annuity payment is the same every month, but its composition changes: interest takes the larger share at first, principal later. Take a loan of 100,000 UAH for 12 months at 24% per year: the payment is 9,455.96 UAH.

In the first month interest accrues on the whole debt: 100,000 × 2% = 2,000.00 UAH. The remaining 7,455.96 UAH repays principal, and the debt falls to 92,544.04 UAH. In month two interest is already 1,850.88 UAH, in month three 1,698.78 UAH, and in the last month only 185.41 UAH.

The sum of the Interest column is the overpayment: 13,471.52 UAH. That is why early repayment in the first months saves the most: it reduces the balance on which interest accrues. The loan agreement sets the terms for early repayment (fees, and whether the payment or the term is recalculated).

The calculator runs an annuity model: enter the amount, the term in months and the annual rate, and it returns the monthly payment, the interest paid over the term and the total repayable.

• •Loan amount — 0 to 1,000,000,000 UAH, in 0.01 UAH steps.
• •Term — a whole number of months, 1 to 600.
• •Rate — 0% to 100% per year, in 0.5% steps.

The overpayment is the sum of all interest: payment × term − amount. It is zero at a 0% rate and never negative.

The schedule below lists every month with Payment, Interest, Principal and Balance; the balance after the final payment is zero. An impossible value in a field replaces the results with an error message and clears the schedule.

Not modelled: fees, insurance, early repayment, and the differentiated schedule — the annual rate is simply divided by 12.

Under a differentiated schedule the principal is split into equal chunks and interest is charged on the outstanding balance: the payment for month k is S ÷ n + (S − (k − 1) × S ÷ n) × i, where S is the amount, n the number of months and i the monthly rate.

One loan, two ways: 100,000 UAH for 12 months at 24% per year. The annuity pays 9,455.96 UAH a month — 113,471.52 UAH in total, 13,471.52 UAH of it interest. The differentiated schedule repays 8,333.33 UAH of principal monthly, so the payment starts at 10,333.33 UAH and ends at 8,500.00 UAH: 113,000.00 UAH in total, 13,000.00 UAH of interest.

The saving is 471.52 UAH, or 0.47% of the amount, while the first payment is 877.37 UAH higher. On a long term the gap in total interest widens, so the choice is between a stable payment and a cheaper loan. The calculator models the annuity only, so a differentiated schedule has to be worked out by hand.

Rate. On 200,000 UAH over 24 months, 12% a year gives a payment of 9,414.69 UAH and an overpayment of 25,952.67 UAH — 12.98% of the amount. At 18%: 9,984.82 UAH and 39,635.69 UAH (19.82%). At 24%: 10,574.22 UAH and 53,781.27 UAH (26.89%). Moving from 12% to 24% adds 27,828.60 UAH.

Term. The same 200,000 UAH at 18% costs 39,635.69 UAH over 24 months; over 36 months the payment drops to 7,230.48 UAH and the overpayment rises to 60,297.25 UAH — 20,661.56 UAH more. A shorter term means a heavier payment and a cheaper loan overall.

Early repayment. On the 200,000 UAH, 24-month, 18% loan paying 9,984.82 UAH a month, the balance after the 12th payment is 108,909.48 UAH; 50,000 UAH extra brings it to 58,909.48 UAH. From there you can:

• •keep the payment and shorten the term — the debt closes in 7 months with a smaller final payment, and you repay 231,973.19 UAH instead of 239,635.69 UAH, saving 7,662.50 UAH of interest;
• •keep 12 months and recalculate the payment — it falls to 5,400.82 UAH, the total becomes 234,627.69 UAH, and you save 5,008.00 UAH of interest.

The earlier you repay, the more you save, because the balance is still large in the first months. The calculator does not model early repayment; these figures are worked out by hand from the balance in the schedule.

Credit against savings. The same 100,000 UAH at 18% for 12 months moves in opposite ways: a deposit with monthly compounding grows to 119,561.82 UAH, while the loan costs 10,015.99 UAH in interest. Interest is charged on a balance that rises on a deposit and falls on a loan — model the savings side in the compound interest calculator.

• •First month. On the 200,000 UAH loan at 18% the monthly rate is 1.5%, so month-one interest is 200,000 × 1.5% = 3,000.00 UAH. Of the 9,984.82 UAH payment, 6,984.82 UAH repays principal and the balance falls to 193,015.18 UAH.
• •Second month. 193,015.18 × 1.5% = 2,895.23 UAH of interest, leaving 7,089.59 UAH to principal.
• •Interest total. Sum the Interest column: you get exactly the overpayment in the result panel, 39,635.69 UAH.

The interest share of the payment falls from 30.05% in month one (3,000.00 ÷ 9,984.82) to 1.48% in the last (147.56 ÷ 9,984.82); the percentage calculator handles those ratios.

The loan does not change your tax position either: VAT of 20% on a business purchase is charged on the selling price, not the amount borrowed — the VAT calculator handles the tax side.