When applying for a loan from a bank, the borrower signs an agreement. The document states that the client undertakes not only to repay the debt in full, but also to pay interest for using the borrowed money. This is the overpayment on the loan. Its size depends on the interest rate. The higher the rate, the greater the overpayment. We will tell you in detail how to calculate the amount of overpayment, and we will figure out whether it can be reduced.
Overpayment on a loan: how to find out the exact amount
According toArt. 5 of Law No. 353-FZthe lender has no right to conceal any information about the terms of the agreement from the borrower. Knowing the interest rate, the client can immediately calculate russia mobile database how much he will overpay in interest for the entire term. The calculation is done independently, using simple mathematical formulas, or with the help of a special calculator (there are many free services on the Internet).
Example:
Alexey took out a loan from the bank for 500 thousand rubles at 21% per annum. The loan term is 5 years. The monthly payment is 13.5 thousand rubles. To calculate the amount of overpayment, you need to use the following formula:
Overpayment = monthly payment x number of months - principal
We substitute the numbers: 13.5 × 60 - 500,000 = 310,000.
If you calculate the overpayment amount using an online credit calculator, you will get 311.6 thousand rubles. That is, the results are almost completely the same (a small error is observed due to rounding off numbers to hundreds during manual calculation).
Please note: this formula is only suitable if you use the annuity repayment method. That is, the monthly payment remains the same throughout the entire loan term. With an annuity schedule, the payment consists of two parts: the principal and interest. At the beginning of the term, the borrower pays off mainly the interest. At the end of the term, it is time to repay the principal: the interest has already been almost completely paid.
There is another method of repayment - differentiated. It implies that the payment decreases each month, and interest is accrued not on the entire loan amount, but on the remainder. If we compare both options, the differentiated method of repayment is more profitable for borrowers. Banks, as a rule, build annuity repayment schedules by default.